CESC Ltd. share price target and research reports

Latest analyst research reports with target prices and PDF download for CESC, BSE:500084 CESC Ltd.

CESC Ltd.

15 Nov 2018

163.55

-2.21%

CESC-Result Update

Buy: CESC Ltd.

Target

Reliance Securities

CESC's net profit grew by 9.7% YoY to Rs2.7bn in 2QFY19 primarily owing to recognition of regulatory revenue of Rs370mn along with 7.3% YoY growth in unit sales to 2,964mn units. While its revenue grew by 6.3% YoY to Rs22bn, EBITDA grew marginally by 1.1% YoY to Rs5.5bn. Realisation remained flat at Rs7.5/kwh. Valuing CESC's power business on FCFE methodology, we maintain our BUY recommendation on the stock with a revised Target Price of Rs775...

CESC Ltd. is trading below its 50 day SMA of 165.5

CESC Ltd.

15 Oct 2018

163.55

-2.21%

CESC

Buy: CESC Ltd.

ICICI Securities Limited

CESC has announces its demerger into three entities instead of the earlier planned four-way merger. The change in decision was on account of a delay in receiving approval regulatory approval for power purchase agreement (PPA) between the distribution and generation companies from West Bengal State Electricity Regulatory Commission (WBSERC). Under the new demerger scheme, CESC will be demerged into three entities viz. CESC, new retail and venture companies. CESC will continue to have generation and distribution business along with other power...

CESC Ltd. is trading above its 200 day SMA of 161.0

CESC Ltd.

15 Oct 2018

163.55

-2.21%

The demerger of the Power and Non-Power businesses: While the WBERC has put forth a few m...

Buy: CESC Ltd.

Recommendation Target

Emkay

Under the new scheme, CESC Ltd will continue to comprise its generation and distribution segments, while two new entities - RP-SG Retail Ltd and RP-SG BPO Ltd - will be formed. For every 10 shares of CESC, 6 shares of FV Rs5 of RP-SG Retail Ltd and 2 shares of FV Rs10 of RP-SG BPO Ltd will be issued. The record date for the demerger is October 31, 2018, and the shares of the two new entities will be listed by the end of Nov'18. While we believe that the demerger of the Retail and BPO arms is positive, the continuation of the distribution segment with the gencos (as of now) may not unlock the desired value that was projected earlier....

CESC Ltd. has an average target of 199.50 from 2 brokers.

CESC Ltd.

12 Oct 2018

163.55

-2.21%

CESC to go ahead with part demerger

Buy: CESC Ltd.

Target

Motilal Oswal

12 October 2018 CESCs board of directors has decided to go ahead with the demerger but with some modification. Instead of demerging the power business into generation and distribution, it will be keeping it as a single entity. CESC had all approvals, except from the electricity regulator for a power purchase agreement between to-be demerged power generation and distribution businesses. It will continue to actively seek the PPA and eventually demerge the power generation and distribution businesses. CESC will remain listed and house the power business. There is precedence from early 2000s where the state-owned electricity companies in India were split into generation, distribution and transmission businesses for better accountability. We believe the case of demerger of CESCs power business remains strong but could take time. We have made changes to our SOTP considering the power business now as one. This has increased cost of equity for the distribution business, resulting in ~10% cut in our SOTP value.

CESC Ltd. is trading below its 50 day SMA of 165.5

CESC Ltd.

30 Jul 2018

163.55

-2.21%

CESC - 1QFY19 Result Update

Buy: CESC Ltd.

Recommendation

Reliance Securities

Average monthly sales of Spencer's Retail increased to Rs1,575/sqft in 1QFY19 from Rs1,530/ sqft in 1QFY18, while monthly Same Stores Sales grew by 3.6% YoY to Rs1,629/sqft from Rs1,572/ sqft in 1QFY18. Its monthly store level EBITDA stood at Rs98/sqft as against Rs94/sqft in 1QFY18, while monthly Same Store EBITDA stood at Rs102/sqft compared to Rs99/sqft in 1QFY18. Notably,...

CESC Ltd. is trading below its 50 day SMA of 165.5

CESC Ltd.

27 Jul 2018

163.55

-2.21%

CESC

Buy: CESC Ltd.

Target

ICICI Securities Limited

ICICI Securities Ltd | Retail Equity Research CESC reported lower-than-expected Q1FY19 results on account of lower revenues, which, in turn, impacted EBITDA, profitability. Revenues came in at | 2159 crore, down 1.1% YoY vs. our estimate of | 2234.1 crore. Revenue miss was mainly on account of lower realisation at | 7.6/KWhr vs. our expectation of | 7.8/KWhr During Q1FY19, power sold at Haldia Energy was up 7.9% at 111 crore units while Chandrapur saw a strong improvement in plant load...

Sharekhan released a Buy report for CESC Ltd. with a price target of 195.0 on 10 Sep, 2025.

CESC Ltd.

31 May 2018

163.55

-2.21%

CESC Ltd.

Buy: CESC Ltd.

Ashika Research

Demerger will lead to substantial value unlocking In May 2017 CESC announced the much expected restructuring of its business into four business verticals (a) Power Distribution (Kolkata licence, Noida Power & distribution franchisee business), (b) Power Generation (standalone, Haldia & Chandrapur), (c) Retail (Spencer's Retail) and (d) CESC Ventures (First Source and Quest Mall). CESC's proposed demerger plan will lead to substantial value unlocking since it separates the...

CESC Ltd. is trading below its 50 day SMA of 165.5

CESC Ltd.

24 May 2018

163.55

-2.21%

CESC

Buy: CESC Ltd.

ICICI Securities Limited

ICICI Securities Ltd | Retail Equity Research CESC reported lower-than-expected Q4FY18 results on account of lower revenues, which, in turn, impacted EBITDA and profitability. Generation in the base business was up 20% YoY at 150.6 crore units, in line with estimates. However, units sold at 239.3 crore units was below estimates of 265.3 crore units. The key reason was the lower-than-expected sale of power from the subsidiary During FY18, power sold at Haldia Energy was up 12.5% at 414.7...

CESC Ltd. is trading above its 200 day SMA of 161.0

CESC Ltd.

24 May 2018

163.55

-2.21%

CESC - 4QFY18 Result Update

Hold: CESC Ltd.

Target

Reliance Securities

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)....

CESC Ltd.'s price crossed below 50Day SMA today

CESC Ltd.

04 May 2018

163.55

-2.21%

CESC: Unlocking value through demerger

Buy: CESC Ltd.

Target

Motilal Oswal

We expect the Distribution entity to generate PAT of ~INR6.5b in FY18, increasing to ~INR7.5b by FY20, driven by growth in regulated businesses and improvement in franchisees. The Generation business should generate PAT of ~INR4b in FY18, increasing to ~INR5.5b by FY20 on lower losses at Dhariwal. On peer valuation basis, the Distribution business could be valued at INR90b-110b and Generation business at INR50b-60b. Both businesses should generate strong double-digit core RoE and healthy FCF. The combined estimated value of the two demerged entities (INR140b-170b) is greater than the current market capitalization of CESC

CESC Ltd. is trading below its 50 day SMA of 165.5

Is CESC Ltd. worth buying?

779 Votes:

Buy 80.36%

Sell 9.5%

Hold 10.14%

RESEARCH REPORTS

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