Tata Power is one of India’s leading energy companies, known for its strong presence in both traditional and renewable power sectors. As the world shifts towards sustainable energy solutions, Tata Power has been at the forefront, investing heavily in green technologies and innovative projects. This has made it a popular choice among long-term investors looking for stable growth.
In this article, we will explore Tata Power’s share price target for 2050, analyzing its growth potential, key factors influencing its performance, and what the future might hold for this energy giant. Whether you’re an investor or someone curious about the company’s prospects, this guide will provide valuable insights to help you make informed decisions.
Disclaimer: This prediction is based on current trends, historical performance, and growth potential. It is not financial advice. Always do your research or consult a financial advisor before making investment decisions.
📈 Share Price Prediction Scenarios:
Conservative Scenario: If Tata Power grows steadily but faces challenges like market competition, regulatory hurdles, or slower renewable adoption.
Moderate Scenario: Balanced growth driven by successful renewable projects, strong government support, and effective debt management.
Aggressive Scenario: Rapid expansion in global markets, major breakthroughs in clean energy tech, and strong financial performance.
🔍 Key Factors for Prediction:
Renewable Energy Focus: Tata Power aims to become a leader in renewable energy. The company plans to increase its clean energy portfolio significantly by 2030, which will drive long-term growth.
Government Policies: The Indian government’s push towards green energy, sustainability, and infrastructure development will support Tata Power’s expansion.
Historical Growth Trends: Over the past decade, Tata Power’s stock has shown steady growth with fluctuations based on market conditions.
Financial Performance: Strong revenue growth (13.34%) but recent profit decline (-31.76%) shows mixed performance. However, improved management of debt and investment in future projects could turn this around.
💡 Key Takeaways:
Tata Power’s future looks promising, especially with the global shift towards renewable energy.
Long-term investors could benefit from consistent growth, but market risks should always be considered.
Tata Power Shareholding Ratios
Tata Power Shareholding Ratios
Category
Percentage
Promoter
46.86%
Public
27.64%
FII
9.45%
DII
16.04%
Peer Comparison
COMPANY
PRICERs.
MCAPCr.
P/E
EPSRs.
ROE%
ROCE%
EV/EBITDA
NTPC
316.85
3,07,335.83
16.93
18.72
12.52
10.65
9.81
Power Grid Corp
278.30
2,58,696.30
17.14
16.22
18.12
12.83
9.45
Adani Power
493.95
1,90,571.35
20.64
23.94
55.41
33.04
12.12
Adani Green Energy
989.20
1,56,740.01
421.35
2.35
-11.72
4.24
73.08
Tata Power
366.75
1,17,300.92
32.86
11.17
15.13
13.46
18.30
NTPC Green Energy
112.10
94,450.73
254.92
0.44
6.64
9.77
56.01
Adani Energy Solut.
773.95
92,907.20
187.91
4.12
5.60
6.94
96.82
JSW Energy
484.90
84,705.60
77.09
6.29
6.64
7.90
48.71
NHPC
77.43
77,778.70
26.87
2.88
10.30
7.71
18.41
Torrent Power
1,406.70
70,914.35
31.14
45.20
15.60
15.69
15.39
Quarterly Result (All Figures in Cr.)
PARTICULARS
Dec 2023
Mar 2024
Jun 2024
Sep 2024
Dec 2024
Net Sales
4,926.24
4,960.57
5,774.12
4,889.44
5,731
Total Expenditure
3,892.62
4,033.98
4,740.60
3,683.95
4,562.78
Operating Profit
1,033.62
926.59
1,033.52
1,205.49
1,168.22
Other Income
469.26
705.28
764.97
808.15
708.84
Interest
533.32
538.77
548.78
525.49
511.60
Depreciation
284.32
327.61
297.87
292.82
306.17
Exceptional Items
0
0
0
0
0
Profit Before Tax
685.24
765.49
951.84
1,195.33
1,059.29
Tax
158.16
-80.62
214.80
186.72
81.37
Profit After Tax
527.08
846.11
737.04
1,008.61
977.92
Adjusted EPS (Rs)
1.65
2.65
2.31
3.16
3.06
Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)
PARTICULARS
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Net Sales
7,726.39
13,169.48
11,107.93
17,727.78
20,093.36
Total Expenditure
4,804.79
10,447.51
9,571.30
16,125.10
16,192.73
Operating Profit
2,921.60
2,721.97
1,536.63
1,602.68
3,900.63
Other Income
582.81
1,260.19
2,997.88
4,094.09
1,852.39
Interest
1,510.38
2,496.68
2,188.94
2,226.60
2,257.45
Depreciation
685.75
1,234.70
1,134.23
1,167.47
1,188.46
Exceptional Items
-957.75
190.33
1,546.46
1,808.27
203.99
Profit Before Tax
350.53
441.11
2,757.80
4,110.97
2,511.10
Provision for Tax
-207.82
101.40
-492.96
843.07
281.24
Net Profit
148.12
293.52
2,782.93
3,267.90
2,229.86
Adjusted EPS (Rs.)
2.06
1.06
10.17
10.23
6.98
Balance Sheet (All Figures are in Crores.)
Particulars
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Equity and Liabilities
Share Capital
270.50
319.56
319.56
319.56
319.56
Total Reserves
13,491.47
8,058.51
10,560.24
13,380.03
15,468.10
Borrowings
11,325.33
18,083.06
18,087.97
11,272.30
13,373.21
Other N/C liabilities
942.68
3,549.89
3,349.33
4,632.06
5,016.24
Current liabilities
10,550.18
14,331.06
14,472.74
18,455.20
16,198.28
Total Liabilities
37,616.48
44,455.64
46,903.40
48,172.71
50,488.95
Assets
Net Block
8,036.29
24,494.32
23,745.96
23,722.05
23,542.27
Capital WIP
402.87
322.43
965.15
1,272.56
1,798.53
Intangible WIP
0
0
0
0
0
Investments
21,327.20
9,961.60
10,711.38
12,064.55
13,013.80
Loans & Advances
403.51
1,020.83
1,070.68
863.03
1,420.35
Other N/C Assets
4,198.43
2,903.90
2,588.71
2,747.41
3,116.70
Current Assets
3,248.18
5,752.56
7,821.52
7,503.11
7,597.30
Total Assets
37,616.48
44,455.64
46,903.40
48,172.71
50,488.95
* Other Non-current Liabilities include Net deferred Liabilities
Cash Flows (All Figures are in Crores.)
PARTICULARS
Mar 2020
Mar 2021
Mar 2022
Mar 2023
Mar 2024
Profit from operations
-92.11
221.27
2,289.97
4,110.97
2,511.10
Adjustment
1,796.48
2,803.88
-515.71
-1,344.92
1,655.06
Changes in Assets & Liabilities
678.83
388.75
25.89
-2,139.53
1,542.69
Tax Paid
-74.40
-79.89
-116.40
-126.47
172.64
Operating Cash Flow
2,308.80
3,334.01
1,683.75
500.05
5,881.49
Investing Cash Flow
-470.99
-1,174.10
1,587.08
5,124.06
-92.11
Financing Cash Flow
-1,752.58
-2,618.40
-3,634.98
-5,349.62
-5,464.60
Net Cash Flow
85.23
-458.49
-364.15
274.49
324.78
Final Word:
Tata Power is a prominent player in the Indian energy sector with a diverse portfolio spanning power generation, distribution, and renewable energy. While the company shows strong fundamentals, including a solid return on equity (15.13%) and consistent sales growth (13.34%), potential investors should also consider its high debt-to-equity ratio (1.24) and relatively low return on assets (4.52%). The stock’s current P/E ratio of 32.86 suggests it may be overvalued compared to industry peers. Therefore, while Tata Power offers long-term growth potential, especially with its focus on renewable energy, investors should conduct thorough due diligence and consider their risk appetite before making investment decisions.
Disclaimer:
The information provided in this article is for educational and informational purposes only and should not be construed as financial advice. The analysis presented is based on publicly available data and does not constitute a recommendation to buy, sell, or hold any securities. Stock market investments are subject to risks, including the loss of principal. Past performance is not indicative of future results. Always consult with a certified financial advisor before making any investment decisions. Profit Journal and its authors are not responsible for any financial losses incurred based on the information provided in this article.
