CESC has delivered a healthy performance in 4QFY18. While its revenue grew by 14.2% YoY to Rs17.9bn, EBITDA surged by 29.9% YoY to Rs2.6bn. However, its net profit declined by 1% YoY (+89.6% QoQ) to Rs2.9bn owing to delay in approval of tariff order leading to under-recovery in expenses. Following the shareholders' approval, CESC has received conditional approval from NCLT for demerger provided the DISCOM arm gets regulatory approval from WBERC for its existing PPA. The Management expects to complete the process of restructuring by 2QFY19. However, as the valuations seem to have discounted all positives, we maintain our HOLD recommendation on the stock with a revised Target Price of Rs1,076 (from Rs1012 earlier)....