Business
Buy CESC; target of Rs 195: Sharekhan
Buy CESC; target of Rs 195: Sharekhan
About this update from Cesc Ltd
Sharekhan's research report on CESCCESC’s consolidated PAT of Rs. 373 crore decreased 6.8% y-o-y (but was inline), impacted by losses in Malegaon and decrease in profits at Dhariwal and Crescent Power. It was compensated by a rise in standalone PAT. Standalone PAT rose 6.3% y-o-y to Rs. 218 crore because of higher unit sales of 2,593MU (up 11.2% y-o-y). Aggressive RE growth strategy with a plan of 3.2GW (capex of ~Rs. 12-13k cr) capacity addition in the next 4-5 years will drive growth. Also, the company has signed a PPA for 225 MW capacity of Chandrapur at attractive rates.OutlookWe retain Buy on CESC with an unchanged PT of Rs. 195 on a SOTP basis. Renewable energy capex and turnaround of the distribution business would aid the earnings.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 - 22052025 - khan