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Tata Power Co (NSE:TATAPOWER) Beneish M-Score : -2.75 (As of Dec. 11, 2024)


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What is Tata Power Co Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.75 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Tata Power Co's Beneish M-Score or its related term are showing as below:

NSE:TATAPOWER' s Beneish M-Score Range Over the Past 10 Years
Min: -3.11   Med: -2.61   Max: -2.01
Current: -2.75

During the past 13 years, the highest Beneish M-Score of Tata Power Co was -2.01. The lowest was -3.11. And the median was -2.61.


Tata Power Co Beneish M-Score Historical Data

The historical data trend for Tata Power Co's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Tata Power Co Beneish M-Score Chart

Tata Power Co Annual Data
Trend Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -3.00 -2.63 -2.46 -2.37 -2.75

Tata Power Co Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only - - -2.75 - -

Competitive Comparison of Tata Power Co's Beneish M-Score

For the Utilities - Independent Power Producers subindustry, Tata Power Co's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Tata Power Co's Beneish M-Score Distribution in the Utilities - Independent Power Producers Industry

For the Utilities - Independent Power Producers industry and Utilities sector, Tata Power Co's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Tata Power Co's Beneish M-Score falls into.



Tata Power Co Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Tata Power Co for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 0.967+0.528 * 0.892+0.404 * 0.9792+0.892 * 1.1159+0.115 * 1.0704
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 0.9756+4.679 * -0.063774-0.327 * 0.9676
=-2.75

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Mar24) TTM:Last Year (Mar23) TTM:
Total Receivables was ₹103,433 Mil.
Revenue was ₹603,880 Mil.
Gross Profit was ₹163,567 Mil.
Total Current Assets was ₹284,654 Mil.
Total Assets was ₹1,395,535 Mil.
Property, Plant and Equipment(Net PPE) was ₹755,541 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹37,864 Mil.
Selling, General, & Admin. Expense(SGA) was ₹4,386 Mil.
Total Current Liabilities was ₹412,515 Mil.
Long-Term Debt & Capital Lease Obligation was ₹411,347 Mil.
Net Income was ₹36,963 Mil.
Gross Profit was ₹0 Mil.
Cash Flow from Operations was ₹125,961 Mil.
Total Receivables was ₹95,856 Mil.
Revenue was ₹541,176 Mil.
Gross Profit was ₹130,749 Mil.
Total Current Assets was ₹310,916 Mil.
Total Assets was ₹1,283,490 Mil.
Property, Plant and Equipment(Net PPE) was ₹638,834 Mil.
Depreciation, Depletion and Amortization(DDA) was ₹34,392 Mil.
Selling, General, & Admin. Expense(SGA) was ₹4,029 Mil.
Total Current Liabilities was ₹440,928 Mil.
Long-Term Debt & Capital Lease Obligation was ₹342,192 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(103432.5 / 603880.3) / (95856.1 / 541176.1)
=0.17128 / 0.177126
=0.967

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(130748.7 / 541176.1) / (163566.9 / 603880.3)
=0.241601 / 0.27086
=0.892

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (284653.8 + 755541.2) / 1395534.9) / (1 - (310915.7 + 638833.7) / 1283490.4)
=0.254626 / 0.260026
=0.9792

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=603880.3 / 541176.1
=1.1159

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(34392 / (34392 + 638833.7)) / (37863.7 / (37863.7 + 755541.2))
=0.051085 / 0.047723
=1.0704

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(4385.6 / 603880.3) / (4028.6 / 541176.1)
=0.007262 / 0.007444
=0.9756

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((411347.3 + 412515.3) / 1395534.9) / ((342191.9 + 440927.8) / 1283490.4)
=0.590356 / 0.610148
=0.9676

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(36962.5 - 0 - 125961.1) / 1395534.9
=-0.063774

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Tata Power Co has a M-score of -2.75 suggests that the company is unlikely to be a manipulator.


Tata Power Co Beneish M-Score Related Terms

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Tata Power Co Business Description

Traded in Other Exchanges
Address
34 Sant Tukaram Road, Corporate Center B, Carnac Bunder, Mumbai, MH, IND, 400 009
Tata Power Co Ltd is an Indian electric utility company within the Tata Group multinational conglomerate that builds, operates, and maintains power generation and distribution facilities. With the help of its seven key subsidiaries and numerous joint-venture companies, the company generates the majority of its revenue through the generation, transmission, distribution, and trading of electricity throughout India. The majority of this energy is produced from thermal fuel sources, such as coal, oil, and gas. Additionally, Tata Power engages in the production of energy from hydroelectric and renewable sources, including multiple hydroelectric and wind power projects located throughout Africa. Its segment comprises Generation; Renewables; Transmission and Distribution; and Others.

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