IIFL Securities Stock Market Watch Today: Buy Cesc - April 09

IIFL Securities has issued a "buy" recommendation for Cesc, with a target price of Rs 151. The current market price of Cesc is Rs 144.75. The brokerage firm believes that the company's strong execution capabilities, focus on project efficiency and cost optimization, and robust prospects for its renewable energy business will drive future growth. Investors who are bullish on the power sector may consider investing in Cesc at current levels for potential gains of around 4%.

About Cesc:

CESC (Calcutta Electric Supply Corporation Ltd) is an Indian power utility company based in Kolkata. It is the largest private sector power distribution company in India, serving over 3 million customers in West Bengal and Odisha. CESC generates, transmits, and distributes electricity to residential, commercial, and industrial consumers. The company also provides renewable energy solutions, including solar and wind power. CESC is listed on the National Stock Exchange (NSE) under the symbol "CESC".

52 Week Price Trend:

CESC's current market price (CMP) of Rs 144.75 is close to its 52-week high of Rs 149.9, indicating a strong bullish trend. However, it is important to note that the stock has witnessed significant volatility in the past year, with its 52-week low reaching Rs 62.1. This suggests that while the stock has potential for further gains, investors should exercise caution and monitor market conditions before making any investment decisions.

Stratzy's MOST Analysis:

CESC's BBB rating from Stratzy's MOST framework indicates a medium fundamental risk. The framework considers four pillars: Management, Outlook, Safety, and Trend. CESC's performance in these areas balanced out, leading to the overall rating. The company may have some areas for improvement, but it also exhibits strengths that suggest a relatively stable financial position and growth potential.

Company's Fundamentals:

Cesc (NSE: CESC) is a leading power utility company with a strong presence in the eastern region of India. As of recent market data, Cesc trades at a Stock PE of 12.15, indicating that investors are willing to pay 12.15 times the company's earnings per share for its stock. The PB Ratio of 1.49 suggests that the company's market value is 1.49 times its book value, which is a measure of its assets minus liabilities. Additionally, Cesc offers a Dividend Yield of 3.48%, implying that investors can expect to receive an annual dividend equal to 3.48% of the current share price.

Fundamental and Technical information provided in this blog were last updated on 09 Apr, 2024

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