power

Tata Power

TATAPOWER · Nifty 50

₹401.5

Price 2026-06-17

BROAD EXPANSION73% confidence

At a Glance

Sector Positionpower sector. Flow: neutral. is not among current leaders. Regime: BROAD EXPANSION (73%).
Fundamental Score70/100 (STRONG). 2 positive flags, 3 concerns.
Historical Context168 similar technical setups. Average outcome: -9.1% decline. 0% positive.

Fundamental

70/100

STRONG

Trust

95/100

Verification

Coverage

44/100

LIMITED

Quick Take

Tata Power scores 70/100 on fundamentals (strong). Tata Power: BROAD EXPANSION regime.

Fundamental Score: 70/100 · STRONG · 2 signals detected

DuPont Analysis

ROE 9.5% broken into three drivers. Each shows how efficiently the company generates returns.

ROE9.5%=
6.0%Net Margin
×
0.4xTurnover
×
4.4xLeverage

ROE of 9.49% is modest leverage-driven and stable. Net margin of 6.0% × asset turnover of 0.36x × leverage of 4.4x.

What This Means

Net margin of 6.0% means the company keeps ₹6.0 as profit for every ₹100 of revenue. This is a moderate-margin business. Asset turnover of 0.36x means the company generates ₹0.36 of revenue for every ₹1 of assets. This is a capital-heavy business. Leverage of 4.4x means the company uses significant debt. Higher leverage amplifies returns but also risk.

Margin Structure

Gross

40.4%

Operating

19.1%

Net

6.0%

improving

Gross margin 40.4% → operating margin 19.1% → net margin 6.0%. Margins are IMPROVING. Strong pricing power with stable gross margins suggests the improvement is from operating leverage — sustainable.

Financial Health

Earnings Quality

STRONG

Cash flow covers net income 1.6x — earnings are HIGH QUALITY. The company converts profit to cash efficiently.

Debt Sustainability

ADEQUATE

Interest covered only 2.3x — stretched. Rising rates could pressure profitability. Debt/EBITDA at 4.8x is high — monitor leverage.

Free Cash Flow

MODERATE

FCF margin negative at -12.3% — spending more than earning. Check capex cycle.

Peer Comparison

Tata Power is compared against 8 peers in the power sector.

ADANIPOWERCESCJSWENERGYNHPCNTPCPOWERGRIDRPOWERTORNTPOWER

Key Watchpoints

🟢

Breaks above ₹422 (+5%)

Trend reversal confirmation

🔴

Breaks below ₹381 (-5%)

Further downside risk

🟢

Power sector entering leadership

Sector rotation signal

Detected Patterns

➡️ Leverage Slowly Rising: Debt growing faster (17.3%) than equity (10.1%)
✅ High Earnings Quality: Cash flow covers earnings 1.6x — strong cash conversion

Risk Flags

🔴 1 Critical⚠️ 2 Warning✅ 2 Positive5 total flags
🔴Cash covers only 11% of current liabilities
Balance Sheet

Liquidity squeeze. Company may struggle to meet short-term obligations without refinancing.

⚠️Working capital changes are 66% of operating cash flow
Cash Flow

Working capital is consuming significant cash. Operational efficiency declining.

⚠️Overall governance risk: 8/10
Governance

Elevated risk score. Review audit, board, and shareholder rights metrics.

✅Minimal unusual items — clean earnings
Earnings Quality

Profits are from core operations, not one-offs. High quality.

✅Assets relatively new (27% depreciated)
Balance Sheet

Modern asset base. Lower near-term capex requirements.

⚠️ 1 critical + 2 warning flags. Exercise caution.

Data Quality

95/100All ratios self-computed from verified sources. 🟢 5 years of financial data — sufficient for trend analysis

News Correlation

margin pressure (4)management outlook (4)
⚠️ Our margin analysis (improving) contradicts news reports of margin pressure — investigate

50 articles scanned for fundamental themes

Facts

P/E Ratio
33.6UNAVAILABLE
P/B Ratio
3.2HIGH
Market Cap
₹12575258.7L CrHIGH
From 52W High
86% of high
Sector Peers
8
← All StocksMarket GPSDaily Briefpower Sector