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Tata Power vs Adani Power. Complete Analysis of Tata power and Adani power.

                This article is about the analysis of Tata power vs Adani power. Here it is analised where these companies are standing financially and the performances of them in last five years. Let's start


Complete Analysis of Tata power and Adani power.

               Tata power, one of the company of Tata group is located in Mumbai, Maharashtra( Headquarter). Company's main business is to generate power, transmit and distribute. Its capacity is 12,321 Mega watt. It was started in 1910, named Tata Hydroelectric Power supply. Later in 1916 it was merged with Andhra Valley Power Supply. Currently Tata power operates in India, Indonesia, Bhutan, Singapore, South Africa. Tata power has plants in more than 35 places in india. Now tata power is mid cap company with the market cap of 30,000 crore rupees.

Tata Power vs Adani Power

               Adani power, one of the company of Adani group is located in Ahemedabad, Gujrat( Headquarter). It was started as a power trading company. Later in 2009 Adani power enters in power generation field. Its total capacity 12,450 mega watt. Adani power also operates 40 megawatt solar power plant in Kutch, Gujrat. Currently Adani power is a mid cap company with the market cap of more than 36,000 crore rupees. 

Tata Power vs Adani Power

              Let's explore the financial data of these companies. Revenue is one of the most important financial data of any company. It helps to understand that how much cash come to company for their sales. Let's see the revenue of  Tata Power and Adani Power

FINACIAL DATA


REVENUE

              In financial year 2021 revenue of tata power is 34,391 crore rupees. In FY 2018 revenue of tata power was 30,713 crore rupees. It means that in last 3 years revenue is increased by 12%. On other side in FY 2021 revenue of adani power is 28,149 crore rupees. In FY 2018 revenue of adani power was 21,093 crore rupees. It means that in last 3 years revenue of adani power is increased by 33.45%. We can see that in both side revenue is increased. But the revenue of adani power is slightly increased more than tata power. 

Complete Analysis of Tata power and Adani power
Complete Analysis of Tata power and Adani power

NET INCOME

               Every company wants to increase its net income. To grow income continuously is tough for all companies. In FY 2021 net income of tata power is 1,127 crore rupees where in FY 2018 net income was 2,408 crore rupees. It means net income of tata power is dropped by 53%. On other side In FY 2021 net income of adani power is 1,269 crore rupees where in FY 2018 net loss of adani power was 2,102 crore rupees. It means adani power power performs better than tata power in the indicator of net income because tata power's net income was dropped by 53% but adani power becomes profit making company from loss makimg company. 

Complete Analysis of Tata power and Adani power
Complete Analysis of Tata power and Adani power

Complete Analysis of Tata power and Adani power

              Let's compare EPS or Earning per Share. Earning per share means income per share. It shows shareholders the income or loss per share. In FY 2021 eps of tata power is 3.82 where in FY 2018 eps of tata power was 8.90. It means eps was decreased by 131% in last 3 years. In FY 2021 eps of adani power is 3.29 where in FY 2018 eps was -.455. It means eps of adani power is increased fastly. So in side of eps adani power performs better than tata power because where in last 3 years eps of tata power was dropped 131% there adani power's eps turns into positive from negative.

TATA POWER EPS
ADANI POWER EPS

DEBT TO EQUITY RATIO


            Let's discuss Debt to Equity ratio. Here debt means loans and equity means cash of company's promoter. If any company wants to control its financial situation then debt to equity of the company should be low. In FY 2017 debt to equity ratio of tata power is 0.68. Now in Fy 2021 debt to equity ratio of tata power is 1.11. It is not good for company. On another side In FY 2017 debt to equity ratio of adani power was 5.41 but in FY 2021 it is reduced in 0.77. Adani power rapidly decreases its debt. It means if we compare the companies according to debt to equity ratio then adani power is better than tata power. 

COMPARISON OF TATA POWER


Tata Power vs Adani Power

             Now discuss about their reserves. Reserves means if in future company faces problem then how much assets company have to manage this. In FY 2017 tata power had the reserve of 11363 crore rupees. Later in FY 2021 it becomes 20503 crore rupees. Year on year tata power increase its reserves that is good for company. In FY 2017 adani power had tge reserve of -857 crore rupees. It means company had the loss of 857 crore rupees. In FY 2021 it becomes -5132 crore rupees. Where year on year basis tata power increases its reserves there adani have no reserves. It is clear that if in future adani power faces any problem then company may afftect huge. In this indicator tata power is better than adani power. 

RESERVES

             Now it is time for promoter stake. That much stake promoter have in the company is the good sign of financially strong. Let's see the promoter stake structure of tata and adani power. In FY 2018 promoter of tata power had 33% stake in company. IN FY 2021 promoter of tata power have 46% stake. They increase their stake. It means they believe in tata power's future growth. In another side promoter of adani power had 78% stake in company and it remains same. Both companies are equal in the field of promoter stake. 

SHAREHOLDING PATTERN

             Let's see the latest shareholding pattern. Promoter of tata power holds 47% stake, retailers 26%, FII 11%, DII 8%, mutual fund 8%. Promoter of adani power holds 75% stake, retailers 14%, FII 11%

SHARHOLDING PATTERN

             Now compare them with the returns of last years. From last August month shares of tata power gave 172% return in 1 year. In last 5 year tata power gave 86% return. Shares of tata power touches 5 years high 135 rupees and 5 years low 27 rupees. Shares of adani power gave 161% return in onr year. It gave 247% return in last 5 years. It touches 5 years high 166 and 5 years low 15 rupees. In long term adani power performed better. 


          Let's look into the future growth of both companies. According to adani website they are making more than 7000 power mega watt capacity power generation plants. Most of the plants are located in MP, Jharkhand, Gujrat, karnataka etc. Besides this adani power do acquisition of some small companies that increases its revenue. Future plan of tata power is to increase the capacity of renewable energy. Tata power plans to keep 50-60% renewable energy in whole power generation amid 2025. They also promised to increased their customer more than 1 crore. Focus of tata power is also on vehicle sector because future generation is the time for EV vehicle. So they focused on vehicle charging power station. 


       Here is all the comparison of tata power vs adani power. We compare the companies in revenue, net income, earnungs per share, debt to equity ratio, reserves, promoter stake, shareholding pattern, returns.


                       If you have any query related to Tata Power vs Adani Power  please comment below so that the topic can be covered.


Best wishes to invest.



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