CESC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | CESC | Market Cap | 24,858 Cr. | Current Price | 188 ₹ | High / Low | 195 ₹ |
| Stock P/E | 29.4 | Book Value | 77.2 ₹ | Dividend Yield | 3.20 % | ROCE | 9.95 % |
| ROE | 7.97 % | Face Value | 1.00 ₹ | DMA 50 | 165 ₹ | DMA 200 | 163 ₹ |
| Chg in FII Hold | -0.27 % | Chg in DII Hold | 0.63 % | PAT Qtr | 176 Cr. | PAT Prev Qtr | 242 Cr. |
| RSI | 76.0 | MACD | 8.76 | Volume | 25,59,075 | Avg Vol 1Wk | 51,46,187 |
| Low price | 138 ₹ | High price | 195 ₹ | PEG Ratio | -94.7 | Debt to equity | 1.12 |
| 52w Index | 86.9 % | Qtr Profit Var | 2.33 % | EPS | 6.39 ₹ | Industry PE | 30.5 |
📊 CESC Ltd (CESC) shows moderate fundamentals with ROCE at 9.95% and ROE at 7.97%, reflecting limited efficiency. Debt-to-equity at 1.12 highlights high leverage, raising financial risk. EPS of 6.39 ₹ supports profitability, but quarterly PAT declined from 242 Cr. to 176 Cr., showing earnings pressure. Dividend yield of 3.20% adds income appeal. Valuations are fair with a P/E of 29.4 vs industry average of 30.5, though PEG ratio of -94.7 indicates poor growth alignment. Overall, CESC’s utility-based business model provides stable cash flows, but high debt and weak efficiency metrics limit upside potential.
💡 Entry Zone: 160–170 ₹ (near DMA 200 support).
📈 Long-Term Holding Guidance: Suitable for cautious investors seeking dividend yield and defensive exposure. Accumulate gradually near support zones and hold for 18–24 months, with partial profit booking near 190–195 ₹ if momentum sustains.
✅ Positive
- Dividend yield of 3.20% provides stable income.
- Valuation fair with P/E (29.4) close to industry average (30.5).
- DII holdings increased (+0.63%), showing domestic institutional support.
⚠️ Limitation
- High debt-to-equity ratio (1.12) raises financial risk.
- Weak ROCE (9.95%) and ROE (7.97%).
- Negative PEG ratio (-94.7) highlights poor growth prospects.
- Quarterly PAT decline (242 Cr. → 176 Cr.) reflects earnings pressure.
📉 Company Negative News
- FII holdings declined (-0.27%), showing reduced foreign investor confidence.
- High leverage continues to weigh on fundamentals.
📈 Company Positive News
- DII holdings increased (+0.63%), reflecting domestic support.
- Dividend yield remains attractive for income-focused investors.
- Stock trading above DMA 50 and DMA 200, showing technical strength.
🏭 Industry
- Power and utility sector provides stable demand and defensive exposure.
- Industry P/E at 30.5 highlights moderate valuations, in line with CESC’s pricing.
🔎 Conclusion
⚖️ CESC Ltd offers fair valuations and stable dividend yield but suffers from high debt and weak efficiency metrics. Entry near 160–170 ₹ provides a favorable risk-reward setup. Best suited for cautious long-term investors seeking defensive exposure, with profit booking near 190–195 ₹ if resistance levels are tested.