CESC Ltd. share price target

CESC has posted in line revenue of Rs17.7bn, up 6.7% yoy in 2QFY16, while PAT came in at Rs1.95bn, up 1.6% yoy, but marginally lower than our estimate of Rs2bn. In the last one year, the stock price of CESC lost its value by 27% mainly on account of cancellation of captive mines Sarisatolli coal block. The stock is now trading at 0.8x FY17E BV, which in our view, is attractively valued mainly on account of commissioning of plants, improvement in retail business showing positive EBITDA at the store levels and better operating performance of First Source. We upgrade our recommendation from...

CESCs 4QFY1?5 PAT of Rs 2.4bn was in line with our estimate. FY15 consolidated PAT was down 60% YoY to Rs 2bn, largely due to loss of Rs 5bn at Chandrapur plant. Spencer?s full year performance was below estimate as it reported an EBIT loss of Rs 1.1bn (est. 800mn).

CESCs 3QFY15 PAT of Rs 1.11bn was below our estimate of Rs 1.28bn due to lower than estimated power unit sales. Spencers performance was strong with YoY SSG of 11% and same store EBITDA of 86/sq. feet (82 in 2QFY15).

The Transmission and Distribution (T&D;) losses during Q4FY12 was at 12.8% vs 12.9% in Q4FY11. Background: CESC (earlier known as Calcutta Electric Supply Corporation) generates electricity and distributes electricity in Kolkata and Howrah since 1899. It is the sole distributor of electricity within an area of 567 square kms of Kolkata & Howrah serving 2.3 mn consumers, which...

H1FY12 registering a growth of 18.8%. Spencer's has made a store level EBIDTA of Rs.31/Sq.ft per month in H1FY12. Background: CESC (earlier known as Calcutta Electric Supply Corporation) generates electricity and distributes electricity in Kolkata and Howrah since 1899. It is the sole distributor of electricity within an area of 567 square kms of Kolkata & Howrah serving 2.3 mn consumers, which includes domestic,...

CESC's integrated generation distribution & transmission business in Kolkata circle is one the best performing distribution company in India. With a steady growth in demand/performance, the customer base is expected to grow by a CAGR of 3%in the next 3 to 4 years. With capex on modernisation efforts bearing...