Best Stocks to Buy Today : IIFL Securities's call on Cesc - July 05

IIFL Securities has issued a buy recommendation for Cesc, with a target price of Rs 175. This represents a potential upside of approximately 3.7% from the current market price of Rs 168.72. The research firm cites strong fundamentals and positive outlook for the company's distribution and renewable energy businesses as key reasons for their bullish stance.

About Cesc:

CESC Ltd., formerly Calcutta Electric Supply Corporation Ltd., is an Indian power utility company headquartered in Kolkata, West Bengal. It is a part of the diversified RP-Sanjiv Goenka Group. CESC is the oldest continuously operating electric utility company in India and one of the largest private sector integrated power utilities in the country. The company primarily serves the city of Kolkata and its suburbs, having a distribution network spanning over 5,000 square kilometers and catering to a population of over 15 million. CESC also has operations in other parts of West Bengal and neighboring states, including power generation and distribution, and renewable energy projects. The company's core business is the distribution of electricity, accounting for the majority of its revenue.

52 Week Price Trend:

Cesc (NSE:CESC), formerly known as Calcutta Electric Supply Corporation, is currently trading at Rs 168.72, indicating a significant increase from its 52-week low of Rs 62.1. The stock has been on an upward trajectory in recent months, hitting a 52-week high of Rs 149.9. Analysts attribute this growth to the company's strong financial performance, driven by increased demand for electricity and improved operational efficiency. Investors are optimistic about Cesc's future prospects, especially considering its expansion plans and focus on renewable energy sources.

Stratzy's MOST Analysis:

CESC has been rated BBB by Stratzy's MOST framework, indicating medium fundamental risks. This rating is based on an assessment of CESC's Management, Outlook, Safety, and Trend. The company's strong management team and positive outlook contribute to the overall BBB rating. However, concerns about the company's safety and trend may limit its potential for further improvement.

Company's Fundamentals:

Cesc Ltd. (CESC) is an Indian power distribution company listed on the National Stock Exchange of India (NSE). Its stock PE (price-to-earnings ratio) of 12.15 indicates that investors are paying ₹12.15 for every ₹1 of earnings. The PB ratio (price-to-book value ratio) of 1.49 suggests that the market value of CESC's stock is 49% higher than the book value of its assets. The dividend yield of 3.48% represents the annual dividend payment as a percentage of the current stock price, indicating the income generated relative to the investment. These ratios provide insights into the company's valuation, financial health, and dividend policy, aiding investors in making informed investment decisions.

Fundamental and Technical information provided in this blog were last updated on 05 Jul, 2024

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