Small Power
Market Cap
₹10,561 ₹10,561 Cr.
P/E
16.47
PEG
1.27
PEG = P/E ÷ 5yr forward EPS CAGR
5yr forward EPS CAGR thesis · Base case

The base case relies entirely on stable generation and tariff realization from existing thermal and hydro plants, with no contribution from non-core assets or new capacity.

The bull case triggers if UPPCL tariff recovery and higher merchant realizations materialize, accelerating revenue growth; the bear case activates if UPPCL holdbacks exceed ₹400 Cr or generation drops below 13,500 MU.

The investment thesis is pinned solely on core plant cash flows amid unresolved regulatory and collection risks.

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5Y Revenue & EBITDA Estimates
KEY TRIGGERS TO WATCH
  • The base case relies entirely on stable generation and tariff realization from existing thermal and hydro plants, with no contribution from non-core assets or new capacity.
  • The bull case triggers if UPPCL tariff recovery and higher merchant realizations materialize, accelerating revenue growth; the bear case activates if UPPCL holdbacks exceed ₹400 Cr or generation drops below 13,500 MU.
  • The investment thesis is pinned solely on core plant cash flows amid unresolved regulatory and collection risks.
Bear : 0.4% CAGR ₹186 Cr
Base: 5.4% CAGR ₹236 Cr
Bull: 9.5% CAGR ₹286 Cr
Management Credibility Report
TRACK RECORD
  • Management can be trusted on operational plant metrics like PLF improvement and debt reduction, but strategic commitments—asset exits, capex decisions, liability resolution—consistently fail.
  • Capital commitments are routinely reversed within two years, and the cumulative unresolved contingent liabilities (SBI guarantee, ICICI recompense, DMG claims) signal an inability to close or resolve external disputes.
  • With a qualified audit, NARCL proceedings, and a credit rating downgrade, management credibility on strategic and financial guidance is structurally impaired.
Met : 3
Progress: 1
Missed : 12
Risk Probe Report
WORST-CASE SCENARIO
  • Unprovided contingent liabilities exceed net worth by 1.3x, with NARCL's CIRP application posing an existential threat to going concern.
  • A systemic pattern of non-provisioning for disputed liabilities, paired with four years of qualified audit opinions and SEBI penalties, erodes the reliability of reported financials.
  • All four subsidiaries face material going concern uncertainty, with significant investment impairments, magnifying the fragility of the consolidated structure.
High Risk : 5
Medium Risk : 10
Low Risk : 2
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