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8 views

TP Acc

Uploaded by

sugandha.b26
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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1.

Inventory

- Inventory details are not explicitly visible in the current extract, but we can assume it would be part of
**current assets** or listed as **"Net Block"** alongside work-in-progress.

- **Capital Work in Progress** (CWIP) increased from **₹25,918 Cr (2016)** to **₹40,033 Cr (2018)**,
indicating ongoing infrastructure or production expansions.

Insight:

- If inventory growth outpaces sales, it could point to inefficiencies or unsold stock buildup. However,
CWIP growth aligns with Tata Power’s infrastructure-heavy nature, hinting at continuous project
development.

2. Equity (Shareholder’s Equity)

- **Equity Share Capital** grew from **₹643.78 Cr (2014)** to **₹766.02 Cr (2023)**, indicating
marginal capital infusions.

- **Reserves** have fluctuated:

- Reached a high of **₹94,748 Cr (2018)**, suggesting profitable years.

- Dropped to **₹54,480 Cr (2021)**, potentially due to dividend payouts or pandemic impact.

Insight:

- Healthy reserves indicate stability, but sudden fluctuations suggest cash outflows (e.g., dividends or
debt repayments). Tata Power's equity indicates a balanced approach to reinvestment and payouts.

3. Cash Flow

- **Operating Cash Flow:** Remains consistently positive, with a peak of **₹37,899 Cr (2016)** and
recovery to **₹35,388 Cr (2023)**.

- **Investing Cash Flow:** Negative across the years (e.g., -₹39,571 Cr in 2017) due to capital
investments in new projects and assets.

- **Financing Cash Flow:** Significant outflows in **2023** (-₹26,242 Cr), indicating repayments or
dividend disbursements.

Insight:

- Tata Power maintains strong operating cash flows, balancing capital expenditures with long-term
growth. Cash outflows toward debt and dividends reflect efforts to manage financial obligations
effectively.

4. Depreciation
- Depreciation, though not explicitly listed here, would affect both **profitability** and **operating cash
flows**. Significant investments in assets (as seen in CWIP) imply growing depreciation expenses over
time.

Insight:

- Increasing depreciation may compress profits in the short term but reflects investment in long-term
infrastructure.

5. Assets

- **Net Block** (fixed assets) rose from **₹69,091 Cr (2014)** to **₹138,855 Cr (2019)**, reflecting
investments in tangible assets.

- **Total Assets** increased from **₹218,425 Cr (2014)** to **₹334,674 Cr (2023)**, indicating


consistent asset expansion.

Insight:

- Tata Power’s asset growth highlights its infrastructure-heavy business model, requiring continuous
investments in plants and equipment.

6. Liabilities

- **Borrowings** rose from **₹60,642 Cr (2014)** to **₹146,449 Cr (2022)**, reflecting reliance on


debt to fund operations and projects.

- **Other Liabilities** consistently increased, indicating growing financial obligations.

Insight:

- High borrowings suggest leverage-based growth. Monitoring debt-service coverage and repayment
schedules will be essential to assess sustainability.

Key Trends and Insights

1. Inventory and Projects:

- Investments in **CWIP** show ongoing project development, aligning with Tata Power’s long-term
strategy.

2. Equity and Reserves:

- Fluctuations in reserves suggest a mix of reinvestment and financial stress during certain periods,
especially in **2021**.

3. Cash Flow:
- Despite capital expenditures, Tata Power generates stable **operating cash flow**, showing efficient
core operations.

4. Assets and Liabilities:

- Asset growth and **increased borrowings** highlight Tata Power’s infrastructure-heavy model,
though **debt management** will be critical for financial health.

Market Cap 1473.53 B


Enterprise Value 1939.76 B
Price/Book TTM4.05
Outstanding Share 3195.34 M
Float/ Outstanding Share 52.27%
Dividend Yield 0.430 %

Valuation:
Undervalued - Price to Intrinsic Value of 0.813
Tsr Value Index - Poor Score of 27.78
Price to Book Ratio of 4.05 suggesting that it is very expensive

Profitability:
Piotroski F Score - Excellent Value of 9.0
EBITDA is continuously increasing for last 3 Years
Steady Growth in EPS for last four quarters
Good Return on Equity of 12.01% is achieved by the company
Very Low Dividend Yield of 0.440 %
Low Earning Yield of 2.50 %
In the last three years, the company has given poor Returns on Assets

Growth:
Tremendous increasing trend in total sale last 3 year
Quarterly sales in last 5 years is trending up
Steady increase in Total Assets for last 3 Years
Tsr Growth Index - Poor Score of 23.51

Stability:
Debt to equity ratio has decreased and is lowest in last five years
Company financial liquidity has improved
Tsr Stability Index - Poor Score of 26.56
Altman Z Score of 1.61 suggest high risk
Company has high debt burden
Company is unable to generate enough free cash to support the business

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