⚠ 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
Last Updated Time : 20 Dec 25, 11:15 pm
Back to Fundamental ListFundamental Rating: 3.3
| Stock Code | CESC | Market Cap | 22,407 Cr. | Current Price | 169 ₹ | High / Low | 192 ₹ |
| Stock P/E | 26.6 | Book Value | 77.2 ₹ | Dividend Yield | 3.60 % | ROCE | 9.95 % |
| ROE | 7.97 % | Face Value | 1.00 ₹ | DMA 50 | 171 ₹ | DMA 200 | 167 ₹ |
| Chg in FII Hold | 0.16 % | Chg in DII Hold | 0.27 % | PAT Qtr | 242 Cr. | PAT Prev Qtr | 211 Cr. |
| RSI | 40.4 | MACD | -1.45 | Volume | 19,18,024 | Avg Vol 1Wk | 15,04,356 |
| Low price | 119 ₹ | High price | 192 ₹ | PEG Ratio | -85.7 | Debt to equity | 1.12 |
| 52w Index | 68.3 % | Qtr Profit Var | 11.0 % | EPS | 6.36 ₹ | Industry PE | 21.9 |
📊 Core Financials
- Quarterly PAT improved from 211 Cr. to 242 Cr. (+11% growth).
- ROE at 7.97% and ROCE at 9.95% indicate modest profitability and efficiency.
- Debt-to-equity ratio of 1.12 shows high leverage, raising financial risk concerns.
- Dividend yield at 3.60% provides attractive shareholder returns.
💹 Valuation Indicators
- P/E Ratio: 26.6 vs Industry PE of 21.9 → Slightly overvalued compared to peers.
- P/B Ratio: Current Price / Book Value ≈ 2.19 → Fairly priced relative to assets.
- PEG Ratio: -85.7 → Negative, indicating poor growth outlook relative to valuation.
- Intrinsic Value Zone: ₹150–₹160 (near DMA 200).
🏭 Business Model & Competitive Advantage
- Core operations in electricity generation and distribution, serving Kolkata and surrounding regions.
- Strong brand presence as a leading utility provider with regulated business model.
- Competitive advantage lies in established infrastructure and consistent demand for power.
📈 Entry Zone & Long-Term Guidance
- Entry Zone: Attractive accumulation between ₹150–₹160.
- Long-Term Holding: Suitable for dividend-focused investors, but growth potential remains limited.
✅ Positive
- Stable dividend yield at 3.60%.
- Quarterly PAT growth (+11%).
- Increase in both FII (+0.16%) and DII (+0.27%) holdings.
⚠️ Limitation
- High debt-to-equity ratio (1.12).
- Weak ROE (7.97%) and ROCE (9.95%).
- Negative PEG ratio (-85.7) indicates poor growth outlook.
📉 Company Negative News
- High leverage raises financial risk concerns.
- Stock trading near lower end of 52-week range (68.3%).
📈 Company Positive News
- Quarterly PAT improved to 242 Cr. from 211 Cr.
- EPS at ₹6.36 shows stable earnings base.
- Increase in institutional investor confidence (FII & DII holdings).
🌐 Industry
- Power utility sector driven by regulated tariffs and consistent demand.
- Industry PE at 21.9 indicates moderate valuation compared to CESC’s slight premium.
- Sector outlook supported by infrastructure growth and rising electricity consumption.
🔎 Conclusion
- CESC offers stable dividends and consistent earnings but faces growth limitations and high leverage.
- Best suited for income-focused investors seeking steady returns rather than aggressive growth.
- Accumulation recommended near ₹150–₹160 for favorable risk-reward balance.
NIFTY 50 - Today Top Fundamental Picks Stock Picks
NEXT 50 - Today Top Fundamental Picks Stock Picks
MIDCAP - Today Top Fundamental Picks Stock Picks
SMALLCAP - Today Top Fundamental Picks Stock Picks