Emkay Global Financial has given Buy recommendation for CESC with a target price of Rs. 101 in its research report issued on Jan 13, 2022

Emkay Global Financial’s report on CESC

Standalone PAT for the quarter stood at Rs1.84bn in Q3 – up 1% YoY and in line with our estimate. Flat earnings were largely on account of the delay in Tariff order for the Kolkata license area. We believe that once the Tariff order comes, there will be decent growth in standalone earnings. CESC also reported stable earnings for the majority of its subsidiaries. Dhariwal Infrastructure posted strong earnings – 9M PAT of Rs1,090mn vs. Rs750mn in 9MFY21; Q3FY22 PAT was Rs500mn. This was largely due to the sale of power in the short term due to high prices at the power exchange. Dhariwal participated with a 210MW bid in a medium-term power purchase tender. If it wins the bid, tied power at Dhariwal will increase.

Outlook

We maintain Buy with a Sept’22 TP of Rs101. CESC remains a 5% dividend yield stock with mid-single digit earnings growth.

More Info on Trent

At 17:30 CESC was quoting at Rs 92.55, up Rs 0.30, or 0.33 percent.

It has touched an intraday high of Rs 93.85 and an intraday low of Rs 91.70.

It was trading with volumes of 396,619 shares, compared to its thirty day average of 183,482 shares, an increase of 116.16 percent.

In the previous trading session, the share closed down 0.65 percent or Rs 0.60 at Rs 92.25.

The share touched its 52-week high Rs 102.45 and 52-week low Rs 57.50 on 19 October, 2021 and 19 April, 2021, respectively.

Currently, it is trading 9.66 percent below its 52-week high and 60.96 percent above its 52-week low.

Market capitalisation stands at Rs 12,268.15 crore.

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