Buy Cesc, target price Rs 193: IIFL Securities

IIFL Securities maintains a "buy" call on Cesc Ltd. with a target price of Rs 193. The current market price of Cesc shares is Rs 185.9. The research firm anticipates that the company will benefit from continued strong demand for electricity in its distribution areas, as well as from the government's focus on infrastructure development. IIFL Securities also believes that Cesc's recent acquisitions will provide further growth opportunities for the company.

About Cesc:

CESC Limited (formerly Calcutta Electric Supply Corporation) is an Indian electrical utility company based in Kolkata, West Bengal. It is one of the oldest and largest integrated electric utilities in India. CESC generates, transmits, and distributes electricity in Kolkata and its suburbs. It also supplies power to the neighbouring districts of West Bengal, including Howrah, Hooghly, and North 24 Parganas. CESC has a total installed capacity of over 3,000 MW, with a mix of thermal, renewable, and hydro sources. The company also operates a 1,000-km distribution network in Kolkata and its suburbs.

52 Week Price Trend:

CESC is currently trading at Rs 185.9, significantly higher than its 52-week low of Rs 62.1. This indicates a strong upward trend in the stock's price. However, it is still below its 52-week high of Rs 149.9, suggesting that there may be further upside potential. Investors should consider the company's fundamentals and future prospects before making any investment decisions.

Stratzy's MOST Analysis:

CESC's BBB rating from Stratzy's MOST framework indicates that it exhibits medium fundamental risks. This framework evaluates companies based on Management, Outlook, Safety, and Trend. CESC's rating suggests a balanced performance across these pillars. The company has a stable management team, positive growth prospects, and a relatively safe financial position. However, it may face some potential risks in the future, which warrant ongoing monitoring.

Company's Fundamentals:

Cesc (NSE: CESC), is a power generation and distribution company with a Stock PE (price-to-earnings ratio) of 12.15, indicating its stock price is 12.15 times its annual earnings per share. Its PB Ratio (price-to-book ratio) of 1.49 suggests that its market value is 1.49 times its book value. Additionally, Cesc offers a Dividend Yield of 3.48%, indicating the amount of cash dividends paid to shareholders as a percentage of the current market price of the stock. These metrics provide insights into the company's financial health and potential returns for investors.

Fundamental and Technical information provided in this blog were last updated on 21 Aug, 2024

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