Business
Buy CESC; target of Rs 105 Sharekhan
Buy CESC; target of Rs 105 Sharekhan
About this update from Cesc Ltd
Sharekhan's research report on CESCQ2 consolidated PAT grew by 14% y-o-y to Rs. 348 crore, supported by solid earnings from Haldia/Dhariwal/ Crescent Power, offsetting a 5% y-o-y decline in standalone earnings. RJ DF posted a loss of Rs2 crore (versus Rs17 crore PAT in Q1FY24) due to marginal loss at Kota DF, while Bharatpur/Bikaner DF posted a positive PAT. Haldia/Dhariwal PLF was strong at 95%/91% in Q2FY24. CESC’s plan to explore investment opportunities in RE generation (up to 3GW) is the right decision as it would support growth.OutlookWe retain Buy on CESC with a revised PT of Rs. 105. Valuation of 0.9x/0.8x FY25E/FY26E P/BV is attractive, and stock offers healthy dividend yield of ~5%. Turnaround of power distribution businesses could create value.For all recommendations report, click hereDisclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.CESC - 10 - 11 - 2023 - khan