CESC Ltd (CESC) AI Stock Analysis

• Market Cap: ₹230.65B
• Dividend Yield: 3.45%
• Average Volume (3M): 158.22K
• Price to Earnings (P/E): 15.9
• Beta (1Y): 1.68
• Revenue Growth: 10.58%
• EPS Growth: 2.69%
• Country: IN
• Employees: 6,087
• Sector: Utilities
• Sector Strength: 65
• Industry: Independent Power Producers
• EPS (TTM): 3.20
• Shares Outstanding: 1,325,570,400
• 10 Day Avg. Volume: 196,144
• 30 Day Avg. Volume: 158,224
• PEG Ratio: -25.64
• Price to Book (P/B): 1.69
• Price to Sales (P/S): 1.19
• P/FCF Ratio: 28.22
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: ₹195.00
• Price Target Upside: 12.07% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹202.00 ▲(16.09% Upside)

CESC Ltd's overall stock score is driven by strong financial performance and bullish technical indicators. The company's growth phase and stable financial health are significant strengths, while the fair valuation suggests moderate upside potential. The absence of earnings call data and corporate events did not impact the score.

Positive Factors

Revenue Growth

Consistent revenue growth indicates robust demand for CESC's services and effective market penetration, supporting long-term business expansion.

Operational Cash Generation

Strong cash generation from operations enhances CESC's ability to fund growth initiatives and maintain financial stability over time.

Stable Profitability

Stable profitability margins reflect efficient cost management, ensuring sustained earnings and competitive positioning in the market.

Negative Factors

Debt Levels

Moderate leverage could limit financial flexibility and increase risk, necessitating careful debt management to maintain long-term stability.

Free Cash Flow Pressure

Negative free cash flow growth due to high capital expenditures may constrain liquidity, impacting the ability to invest in future opportunities.

Operational Efficiency Variability

Variability in operating efficiency could affect profitability, highlighting the need for operational improvements to sustain margins.

CESC Ltd Business Overview & Revenue Model

Company Description

CESC Ltd (CESC) is a leading power utility company based in India, primarily engaged in the generation, distribution, and transmission of electricity. Established in 1899, CESC operates in the energy sector, providing reliable power supply to millions of consumers in Kolkata and its surrounding areas. The company is involved in various segments, including thermal power generation, renewable energy, and energy trading, and is known for its commitment to sustainability and innovation in energy solutions.

How the Company Makes Money

CESC generates revenue primarily through the sale of electricity to residential, commercial, and industrial consumers. Its revenue model includes income from power generation, which is sold to state electricity boards and directly to consumers based on regulated tariffs. Additionally, CESC earns revenue from distribution and transmission charges, which are levied on the electricity supplied. The company also has significant revenue streams from renewable energy projects, where it capitalizes on government incentives and green energy certificates. Strategic partnerships with local governments and regulatory bodies enhance CESC's ability to secure long-term power purchase agreements, which provide stable cash flows. Furthermore, CESC engages in energy trading, optimizing electricity sales and purchases to maximize profitability in response to market demand and pricing fluctuations.

CESC Ltd Financial Statement Overview

Summary

CESC Ltd's financial statements reflect strong revenue growth and stable profitability with a healthy gross profit margin. The balance sheet shows moderate leverage with a debt-to-equity ratio of 1.5, and the cash flow statement indicates strong operational cash generation despite pressure from investment activities. Overall, the company is in a growth phase with sound financial health, though improvements in operational efficiency and debt management could enhance performance.

Income Statement

CESC Ltd has shown strong revenue growth with a TTM revenue increase of approximately 11% from the previous year. The company maintains a healthy gross profit margin of around 35% and a net profit margin of roughly 8%, which indicates efficient cost management. However, the EBIT margin has seen some variability, suggesting potential fluctuations in operating efficiency. Overall, the income statement reflects a positive growth trajectory with stable profitability, although operational improvements could enhance margins further.

Balance Sheet

The company's balance sheet shows a stable equity position with a debt-to-equity ratio of about 1.5, indicating moderate leverage. The return on equity (ROE) is approximately 11.4%, reflecting reasonable profitability relative to shareholder equity. An equity ratio of around 29% suggests a balanced capital structure, though there is room for improvement in reducing debt levels to enhance financial stability. Overall, the balance sheet indicates a stable financial position with manageable leverage.

Cash Flow

CESC Ltd demonstrates a consistent ability to generate operating cash flow, with a TTM operating cash flow to net income ratio of approximately 1.89, indicating strong cash conversion efficiency. The free cash flow growth rate has been negative, reflecting increased capital expenditures which may be directed towards growth initiatives. While the free cash flow to net income ratio is positive, ongoing investment activities have impacted cash reserves. Overall, the cash flow statement shows solid operational cash generation, albeit with some cash flow pressure due to investment activities.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	173.40B	170.01B	152.93B	142.46B	125.44B	116.39B
Gross Profit	65.96B	59.90B	51.10B	45.52B	30.56B	51.95B
EBITDA	41.64B	28.44B	41.34B	37.34B	39.29B	38.31B
Net Income	13.78B	13.69B	13.76B	13.43B	13.58B	13.31B
Balance Sheet
Total Assets	0.00	409.81B	371.68B	377.12B	374.93B	358.62B
Cash, Cash Equivalents and Short-Term Investments	40.42B	40.42B	25.90B	25.75B	32.30B	20.27B
Total Debt	0.00	179.78B	145.44B	142.63B	149.61B	142.77B
Total Liabilities	-126.02B	283.79B	251.82B	263.23B	266.63B	255.92B
Stockholders Equity	126.02B	120.09B	114.46B	109.10B	103.96B	98.73B
Cash Flow
Free Cash Flow	0.00	7.19B	15.80B	12.83B	17.21B	21.23B
Operating Cash Flow	0.00	25.82B	23.51B	19.78B	24.99B	28.06B
Investing Cash Flow	0.00	-30.13B	-5.64B	-5.45B	-5.75B	-14.89B
Financing Cash Flow	0.00	13.37B	-16.42B	-24.57B	-6.11B	-17.39B

CESC Ltd Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 174.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CESC, the sentiment is Positive. The current price of 174 is above the 20-day moving average (MA) of 172.30, above the 50-day MA of 170.29, and above the 200-day MA of 158.99, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 53.18 is Neutral, neither overbought nor oversold. The STOCH value of 73.28 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for IN:CESC.

CESC Ltd Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
TORNTPOWER	75 Outperform	₹657.14B	23.58	―	1.46%	-1.26%	27.83%
NTPC	73 Outperform	₹3.13T	13.18	―	2.66%	1.68%	7.60%
CESC	73 Outperform	₹230.65B	15.91	―	3.45%	10.58%	2.69%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
TATAPOWER	65 Neutral	₹1.28T	31.54	―	0.58%	4.06%	8.22%
JSWENERGY	63 Neutral	₹922.38B	45.53	―	0.43%	39.71%	1.33%
ADANIPOWER	62 Neutral	₹2.77T	23.04	―	―	-0.70%	-5.41%

CESC Ltd Corporate Events

CESC Limited to Participate in RP-Sanjiv Goenka Group Investor Day 2025

CESC Limited has announced its participation in the upcoming RP-Sanjiv Goenka Group Investor Day 2025, scheduled for September 8, 2025, in Mumbai. This event, hosted by Nuvama Institutional Equities, will be conducted physically and aims to engage with investor groups, potentially impacting the company’s investor relations and market perception.