Among Tata power,Reliance Power,Adani Power, which company poised to grow Faster in next 3 years?

Among Tata power,Reliance Power,Adani Power ,which company poised to grow Faster in next 3 years? I am not asking Stock Recommendation .I am only asking about companies future Plans and their execution Skills. Please also let me know if these kind of questions are not entertained in this forum.

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@VARMAN,

I am not an expert but I think you can judge yourselves based on the info here. (5 year data from moneycontrol.com)

Also look at the historical charts of all three companies, in details, (look for Splits information, etc)

  • Having too much debt when compared to earnings is not good. A company which cannot pay off the debt in the next few years (few years profit put together), will likely to accrue more debt or sacrifice its profits to settle pressing loans.
  • Having good cash balance is good. Good cash balance helps the company to develop the company and attend to pressing needs thereby steering the company in the proper direction. You cannot expect an increasing trend in cash flow over the years, since in certain years much of the cash might have been used for developments. For simplicity you can add up the cash balance to profitsto have an estimation of the company in case cash balance is huge. A company with good cash balance will not let its share plummet.
  • Increasing trend in profits is good. Losses (those with negative sign are real bad), In the past having negative profits and a turnover to profit zone in recent years would attribute to change in management etc. So analyze that before filtering. Consistent profits is also good but not as good as increasing profits. Downtrend of profits has to be dealt with serious caution.
  • Promoter shareholding resembles how much the promoters are having control over the company. A company with 75% promoter holding has only let the remaining 25% to public, which translates that public will have limited control to manipulate the prices in case of bad news etc. Also a good amount of promoter holding resembles strong stand by management of the company.
  • Pledged shares are bad, I mean really bad enough that all of a sudden it can turn a company upside down. Pledging percent anything more than 10% should raise an alarm in your mind to check the company thoroughly.
  • As far as power sectors are considered, huge initial investments draw a huge amount of loans/debts, so you should provide some tolerance to those companies based on industry benchmark.
  • Brand value is important, you should see how familiar the company is, are they providing services to rural/urban or check what kind of businesses they do.
  • Other than these you should look at the P/E ratio, Afforable stock price, Market cap, etc to understand which company is better.
  •  

On my personal opinion TATAPOWER seems to have good profits vs debt ratio, good earning and good cash balances and less pledged shares. Also tata is having good brand value. But if I were you, I will completely analyze this stock A to Z before investing. Not just by mere figures. These figures can only filter the stocks, not act as a medium to choose them.

  Total Debt
  Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
TATAPOWER 10,255.52 11,124.72 9,197.13 7,053.69 5,963.42
RPOWER 1,877.78 0 1,554.05 0 0
ADANIPOWER 22,317.20 24,694.06 24,803.48 17,346.06 9,749.10
  Closing Cash & Cash Equivalents
  Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
TATAPOWER 55.3 401.2 1041.05 843.47 1318.95
RPOWER 535.83 550.38 198.76 1234.92 98.21
ADANIPOWER 81.27 281.25 326.07 856.86 1026.67
  Net Profit/(Loss) For the Period
  Mar '14 Mar '13 Mar '12 Mar '11 Mar '10
TATAPOWER 954.08 1,024.69 1,169.73 970.01 947.65
RPOWER 56.48 513.93 310.86 274.55 273.23
ADANIPOWER 595.26 -1,952.03 -293.92 523.75 170.8
  Total Shareholding of Promoters as a % of Total No. of shares
TATAPOWER 33.04%
RPOWER 74.98%
ADANIPOWER 75.00%
  Shares pledged or otherwise encumbered (as a % Total No. of Promoter Shares)
TATAPOWER 5.10%
RPOWER 8.91%
ADANIPOWER 39.85%


*Chart Information from Yahoo Finance

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I have posted a detailed check method here in this post
http://tradingqna.com/8364/how-to-identify-the-right-stock-for-me-to-invest
Also I have provided information on 500 stocks to compare and shortlist.

very good answer

Its very good Aastroguru the data & answer…

@AastroGuru Beatifully explained, you put in lots of effort to research and then answers people’s queries. Thanks a lot. Keep up the good work.

Thanks @ all
I am preparing such a comparison list for all CNX 500 companies.
Almost completed 350.
Want to share in tradingqna. Dont know how to. The data is enormous!

Post updated with additional information. This will help to analyse the data, rather than just depicting the data.!