⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
CESC - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.8
| Stock Code | CESC | Market Cap | 20,723 Cr. | Current Price | 156 ₹ | High / Low | 185 ₹ |
| Stock P/E | 24.5 | Book Value | 77.2 ₹ | Dividend Yield | 3.84 % | ROCE | 9.95 % |
| ROE | 7.97 % | Face Value | 1.00 ₹ | DMA 50 | 157 ₹ | DMA 200 | 162 ₹ |
| Chg in FII Hold | 0.79 % | Chg in DII Hold | -0.04 % | PAT Qtr | 176 Cr. | PAT Prev Qtr | 242 Cr. |
| RSI | 51.6 | MACD | 0.55 | Volume | 18,91,795 | Avg Vol 1Wk | 61,22,716 |
| Low price | 137 ₹ | High price | 185 ₹ | PEG Ratio | -78.9 | Debt to equity | 1.12 |
| 52w Index | 40.6 % | Qtr Profit Var | 2.33 % | EPS | 6.39 ₹ | Industry PE | 24.6 |
📊 Financials
- Revenue Growth: PAT declined from 242 Cr. to 176 Cr., showing weakness
- Profit Margins: EPS at 6.39 ₹, modest relative to valuation
- Debt Ratios: Debt-to-Equity 1.12, high leverage
- Cash Flows: Supported by utility operations, but debt burden impacts liquidity
- Return Metrics: ROE 7.97%, ROCE 9.95% — moderate efficiency
💹 Valuation
- P/E Ratio: 24.5 (in line with Industry PE 24.6)
- P/B Ratio: ~2.0 (reasonable)
- PEG Ratio: -78.9 (negative, indicates poor growth outlook)
- Intrinsic Value: Current price (156 ₹) near DMA 50 (157 ₹) & DMA 200 (162 ₹), showing consolidation
🏢 Business Model & Competitive Advantage
- Integrated power utility company with presence in generation and distribution
- Competitive advantage in regional electricity supply
- High debt levels limit financial flexibility
📈 Entry Zone Recommendation
- Entry Zone: 150–160 ₹ (near support levels, RSI at 51.6)
- Long-Term Holding: Suitable for dividend-seeking investors, but growth outlook is weak
✅ Positive
- Dividend yield at 3.84% adds investor appeal
- FII holding increased (+0.79%)
- Valuation fair compared to industry
⚠️ Limitation
- High debt-to-equity ratio (1.12)
- Weak ROE (7.97%) and ROCE (9.95%)
- Negative PEG ratio (-78.9), poor growth outlook
📉 Company Negative News
- DII holding decreased (-0.04%)
- Quarterly PAT declined significantly
📈 Company Positive News
- FII holding increased (+0.79%)
- Dividend yield supports investor confidence
🏭 Industry
- Power utility industry stable but capital-intensive
- Industry PE at 24.6, CESC trades in line with peers
🔎 Conclusion
CESC is a power utility company with stable operations and attractive dividend yield. However, profitability metrics are weak and debt levels are high, limiting growth potential. Valuations are fair compared to industry peers, but entry around 150–160 ₹ is advisable only for dividend-focused investors, while long-term growth prospects remain muted.