CESC Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
CESC Ltd's management has articulated a cautious yet optimistic outlook, emphasizing a strategic pivot towards renewable energy, particularly solar, to align with global energy trends and rising demand from sectors like AI and advanced manufacturing. This transition is supported by the recent acquisition of ReNew's solar assets, which enhances immediate scale and cash flow, and a clear roadmap to reach 10GW of renewable capacity. Vista's financial outlook reflects stable revenue growth and margins, underpinned by the company's core regulated distribution businesses, which provide predictable earnings. However, challenges such as rising operational costs and execution risks associated with the renewable pipeline remain pertinent. The broader industry context, characterized by robust electricity demand and competitive pricing pressures, further influences CESC's outlook. Over the next 12-24 months, key opportunities include the successful integration of acquired assets and the commissioning of new renewable projects, while watchpoints include potential regulatory shifts and the impact of commodity price inflation on margins
Why We Like This Stock
- Strategic acquisition of ReNew's solar assets enhances scale and cash flow
- Clear roadmap to achieve 10GW of renewable capacity by FY32 supports long-term growth
- Stable core regulated distribution business provides predictable earnings
Things To Watch Out For
- Rising operational costs and execution risks associated with the renewable pipeline could pressure margins
- Potential regulatory shifts in the power sector may impact operational strategies
- Commodity price inflation poses a risk to overall profitability
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 15,293 | 17,001 | 18,570 | 18,666 | 20,478 |
| Profit Before Tax (Cr.) | 1,649 | 1,728 | 2,119 | 2,072 | 2,272 |
| PBT Margin | 10.8% | 10.2% | 11.4% | 11.1% | 11.1% |
| Net Profit (Cr.) | 1,291 | 1,322 | 1,618 | 1,575 | 1,646 |
| Earnings Per Share | 9.2 | 9.5 | 11.6 | 11.3 | 12.4 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Nuvama | ▲ Outperform | 200 | 11-Sep-2026 |
| BNP Paribas | ▲ Outperform | 230 | 02-Sep-2026 |
| Elara Capital | ▲ Buy | 228 | 14-Aug-2026 |
| Prabhudas Liladhar | ▲ Buy | 220 | 14-Aug-2026 |
| JMFinancials | ▲ Buy | 214 | 09-Jun-2026 |
| ICICI Securities | ▲ Buy | 220 | 07-May-2026 |
Company Overview
Show Company Profile
CESC Limited, an integrated electrical utility company, engages in the generation and distribution of electricity in India. It owns and operates two thermal power plants, including Budge Budge generating station with a generating capacity of 750 megawatts and Southern generating stations with a generating capacity of 135 megawatts; a 40-megawatt atmospheric fluidized bed combustion power plant in Asansol, West Bengal; a 300-megawatt solar project in Bhadla, Rajasthan; and a 450-megawatt hybrid project that consists of a 150-megawatt solar unit in Bikaner, Rajasthan and a 300-megawatt wind unit in Ananthapuram, Andhra Pradesh. The company serves domestic, industrial, commercial, government agencies, pumping stations, local bodies, schools etc. CESC Limited was founded in 1899 and is headquartered in Kolkata, India.