CESC reported consolidated profits of Rs. 379 cr (+1.6% yoy) as demand remained weak in 2QFY21 due to Covid-19.

Chirag Batavia • 28 December 2020

CESC Ltd

 CESC reported consolidated profits of Rs. 379 cr (+1.6% yoy) as demand remained weak in 2QFY21 due to Covid-19. Improvement in Chadrapur and Noida distribution business compensated for the decline in standalone earnings.

 Haldia reported a PAT of Rs. 110 cr (+21% yoy) as the plant operated at a PLF of 91.3% in 2QFY21. Dhariwal reported profit of Rs. 23 cr compared to losses of Rs. 25 cr in 2QFY20 with reported PAT in 1HFY21 of Rs. 47 cr from loss of Rs. 49 cr in 1HFY20.

 Driven by operational improvements, Cresent Power along with Noida distribution reported PAT of Rs. 7 cr (Rs. 12 cr in 1QFY20) and Rs. 30 cr, respectively. Distribution circles in Rajasthan reported profit of Rs. 1 cr (loss of Rs. 33 cr in 1QFY21 and Rs. 3 cr in 2QFY20).

 Dhariwal has tied up 270 MW of Unit -2 under long term PPA while Unit-1 has signed a PPA (185 MW) with MERC starting November 2019 currently up to January 2021.

 Valuations offer increased comfort at 5X P/E on FY22E and 0.65X P/B on FY22E. and We maintain our BUY rating on CESC with FV of Rs. 800/share, with the results for 2QFY21 further strengthening our investment thesis—(1) stability of regulated business, (2) moderating losses from new distribution circles and (3) improving utilization for Dhariwal.

CESC: BUY
Dated: 28th December 2020
CMP: Rs.605
Fair Value: Rs.800
Potential Upside: 32.2%
Market Cap: Rs. 8,086 Cr
Time Frame: 12 months

Note: The above is a brief note on the company, based on the inputs of KIE research report dated 9th November, 2020, which is available on our website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamental.      
Disclaimer: http://bit.ly/2n5AxIE

Looking to invest in CESC Ltd and other Indian stocks? Open your trading account with Lakshit Financial

Lakshit Financial Authorized Person of Kotak Securities Limited in cash segments of BSE & NSE and NSE F&O segments with NSE. Lakshit Financial registration number: BSE CASH AP0106730124228 | NSE CASH AP029177621 | NSE F&O AP029177621.Registered Office: Lakshit Financial, ASM 7, Ashwin Sector, Mumbai Agra Highway, CIDCO, Nasik 422009, Maharashtra, India. Kotak Securities Limited. Registered Office: 27 BKC, C 27, G Block, Bandra Kurla Complex, Bandra (E), Mumbai 400051. CIN: U99999MH1994PLC134051. SEBI Registration No. INZ000200137 (Member of NSE, BSE, MSE, MCX & NCDEX). Member Id: NSE-08081; BSE-673; MSE-1024; MCX-56285; NCDEX-1262. AMFI ARN 0164, PMS INP000000258 and Research Analyst INH000000586. NSDL/CDSL: IN-DP-NSDL-23-97.

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please refer the Risk Disclosure Document issued by SEBI and go through the Rights and Obligations and Do's and Dont's issued by Stock Exchanges and Depositories before trading on the Stock Exchanges.

As an NR I , you can invest in IPOs and purchase shares, ETFs or convertible debentures of an Indian company through stock exchanges. All it takes is linking your NRO or NRE account to an active Demat account in India on a repatriable or non-repatriable basis, based on your requirements. Click here to learn more about NRI Trading and Demat Accounts.

OPEN YOUR ACCOUNT NOW !

Fill in your details and we will get in touch with you.

Products and services available only for People of Indian Origin

Note:  Please note that by submitting the above mentioned details, you are authorising Lakshit Financial to call you and send promotional communication even though you may be registered under DNC. Also, all calls with Lakshit Financial representatives may be recorded for internal quality & training purposes

Looking to invest in HOME FIRST FINANCE (HOMEFIRST) and other Indian stocks? Open your NRI Demat Acc

Home First (HFFC) reported 24% earnings growth, with 19% net interest income growth in Q2FY25

30 December 2024
Home First Finance (HOMEFIRST) Home First remains consistent on operational and financial parameters. Home First (HFFC) reported 24% earnings growth, with 19% net interest income growth in Q2FY25. Gross stage-3 ratio was flat qoq at 1.7%, stage-2 ratio declined 6 bps qoq to 1.1%. While other asset classes have reported mixed trends residential home loans, as an asset class, continues to stand tall. Home First, with 85% home loan exposure, is well-placed on the above. We expect the company to deliver 25% earnings CAGR for FY25-27E. We remain assertive with a BUY rating and FV of Rs1,360 (no change). Note: The above is a brief note on the company, based on the inputs of KIEresearch report dated 25111Oct, 2024, which is available onour website at: https://www.kotaksecurities.com/ksweb/ResearchCall/Fundamenta1. Disclaimer: http://bit.ly/2n5Ax1E https://www.kotaksecurities.oom/ksweb/research/kotak-research-reports/top-weekly-picks
Looking to invest in SAMHI HOTELS LTD and other Indian stocks? Open your NRI Demat & Trading Account

SAMHI is among India's largest hotel ownership & asset management platforms.

4 December 2023
OPEN
Looking to invest in INFOSYS LTD and other Indian stocks? Open your NRI Demat & Trading Account

Infosys signed 21 large deals in Q2FY24

21 November 2023
OPEN
Looking to invest in Interglobe Aviation and other Indian stocks? Open your NRI Demat & Trading Acco

Pricing woes unlikely to continue much beyond Q2FY24 for lnterGlobe Aviation

9 October 2023
OPEN
Looking to invest in CANARA BANK and other Indian stocks? Open your NRI Demat & Trading Account

Canara Bank reported 75% yoy earnings growth

31 July 2023
OPEN
Macro opportunities are still quite large for even a large bank like HDFC Bank

Macro opportunities are still quite large for even a large bank like HDFC Bank

10 July 2023
OPEN
Looking to invest in CESC and other Indian stocks? Open your NRI Demat & Trading Account with ease

CESC's strong headline grows (28% yoy) primarily on the back of higher unit sales

12 September 2022
OPEN
ICICI Prudentials inexpensive valuation drive Buy rating with fair value of Rs. 650

ICICI Prudential's inexpensive valuation drive Buy rating with fair value of Rs. 650

25 July 2022
OPEN
Looking to invest in Lodha and other Indian stocks? Open your NRI Demat & Trading Account

Lodha clocked Rs9,020 cr (+51% yoy) pre-sales during FY2022

2 May 2022
OPEN
Looking to invest in HDFC Bank and other Indian stocks? Open your NRI Demat & Trading Account

HDFC Bank reported 23% yoy earnings growth.

25 April 2022
OPEN
More posts
Share by:
gtag('config', 'AW-634979631');