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

IIFL Securities has issued a "buy" recommendation for Cesc, setting a target price of Rs 212, implying an upside potential of around 4%. The current market price of Cesc is Rs 204.1. The brokerage firm believes that Cesc's strong distribution network and focus on renewable energy position it well for long-term growth. The company's recent acquisition of CESC Energy is also expected to boost its earnings.

About Cesc:

CESC Limited, formerly Calcutta Electric Supply Corporation, is an Indian electrical utility company headquartered in Kolkata, West Bengal. It is the largest private sector power distribution and generation company in India. CESC's operations span across the states of West Bengal, Odisha, Uttar Pradesh, Bihar, Jharkhand, and Andhra Pradesh. The company has a total installed capacity of over 5,800 MW and distributes electricity to over 3 million customers. CESC is also involved in the transmission and distribution of natural gas, waste management, and other infrastructure projects.

52 Week Price Trend:

Cesc Ltd. (CESC) is currently trading at Rs. 204.1, within the range of its 52-week high of Rs. 149.9 and low of Rs. 62.1. This indicates that the stock is trading near its recent peak and significantly above its recent trough. Investors should consider factors such as the company's financial performance, industry trends, and overall market sentiment when making investment decisions.

Stratzy's MOST Analysis:

Stratzy's MOST framework assesses a stock's fundamental risks based on Management, Outlook, Safety, and Trend. CESC has received a BBB rating, indicating Medium Fundamental Risks. This suggests that while CESC exhibits some strengths in these areas, there may be certain concerns or areas for improvement. The overall risk assessment is based on a balanced consideration of all four pillars, with each factor contributing to the final score. This rating can assist investors in making informed decisions regarding the potential risks associated with investing in CESC.

Company's Fundamentals:

Cesc (NSE: CESC) is an electricity generation and distribution company with operations in India. As of [date], its stock has a Price to Earnings (PE) ratio of 12.15. This means that investors are currently paying Rs. 12.15 for every rupee of earnings, indicating that the stock is fairly priced. The Price to Book (PB) ratio of 1.49 suggests that the market value of Cesc is nearly 1.5 times its book value, implying that the stock is slightly overvalued. Additionally, the company offers a Dividend Yield of 3.48%, providing investors with a steady stream of income from their investment.

Fundamental and Technical information provided in this blog were last updated on 25 Sep, 2024

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