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Buy CESC; target of Rs 220: ICICI Securities
Buy CESC; target of Rs 220: ICICI Securities
About this update from Cesc Ltd
ICICI Securities research report on CESCCESC reported a Q4FY26 EBITDA of INR 12bn (+23% YoY) and a profit of INR 4.4bn (+18% YoY), aided by: a) acquisition of Chandigarh DISCOM and b) new power tie-up at attractive prices for Chandrapur thermal power plant (effective Apr’25 for two years). However, the delay in tariff order (true-ups) continues. The build-up of regulatory assets has been arrested by the recovery of fuel and power purchase costs (8% of tariff); note that these assets remain large at INR 46bn.OutlookCESC has outlined an INR 320bn capex plan, with INR 230bn carved out for RE generation capacity. To that effect, it added 800MW of PPAs and won new bids for 550MW in Q4. It is also looking to invest in its distribution assets and solar manufacturing. Retain BUY with a TP of INR 220 (vs INR 204 earlier).Disclaimer: 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 - 0705026 - icici