CESC Ltd (CESC) AI Stock Analysis

• Market Cap: ₹213.48B
• Dividend Yield: 2.79%
• Average Volume (3M): 181.10K
• Price to Earnings (P/E): 15.5
• Beta (1Y): 1.65
• Revenue Growth: 9.43%
• EPS Growth: -2.06%
• Country: IN
• Employees: 6,087
• Sector: Utilities
• Sector Strength: 62
• Industry: Independent Power Producers
• EPS (TTM): 3.00
• Shares Outstanding: 1,325,570,400
• 10 Day Avg. Volume: 104,683
• 30 Day Avg. Volume: 181,103
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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: ₹201.75
• Price Target Upside: 25.27% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: ₹175.00 ▲(8.66% Upside)

CESC Ltd's overall stock score is primarily driven by its solid financial performance, characterized by strong revenue growth and stable profit margins. However, the technical analysis indicates a bearish trend, and the valuation is fair but not compelling. The absence of earnings call data and corporate events limits additional insights into the company's future prospects.

Positive Factors

Revenue Growth

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

Cash Generation

Strong cash conversion efficiency ensures CESC can fund operations and growth initiatives, enhancing financial resilience and strategic flexibility.

Profit Margins

Stable profit margins reflect effective cost management, supporting sustainable profitability and the ability to reinvest in business growth.

Negative Factors

Leverage

Moderate leverage could limit financial flexibility and increase risk, especially if interest rates rise or cash flow generation weakens.

Free Cash Flow

Negative free cash flow growth due to high capital expenditures may pressure cash reserves, impacting short-term liquidity and investment capacity.

EBIT Margin Variability

Fluctuating EBIT margins indicate potential challenges in maintaining consistent operational efficiency, which could affect profitability stability.

CESC Ltd Business Overview & Revenue Model

Company Description

CESC Ltd (CESC) is a leading integrated power utility company in India, primarily engaged in the generation and distribution of electricity. The company operates in the energy sector, providing essential electricity services to millions of residential, commercial, and industrial customers across its service areas. CESC is involved in the entire electricity value chain from generation, through its own power plants, to distribution, ensuring a reliable and efficient supply of power.

How the Company Makes Money

CESC Ltd makes money through its core operations in the power generation and distribution sectors. Its primary revenue streams include the sale of electricity to residential, commercial, and industrial consumers. The company generates electricity through its own power plants, which are strategically located to serve its distribution areas. CESC also engages in power trading activities, where it sells excess power to other utilities or through power exchanges. Additionally, the company benefits from regulated tariffs set by the government, which ensure a stable return on its investments in infrastructure development and maintenance. CESC's revenue is significantly influenced by factors such as electricity demand, regulatory policies, and its operational efficiency in managing generation and distribution networks.

CESC Ltd Financial Statement Overview

Summary

CESC Ltd's financial statements reflect a company in a growth phase with strong revenue and profit margins. The balance sheet is stable, though slightly leveraged, and the company is investing significantly in its operations, as shown by cash flow activities. While the financial health is sound, focusing on improving operational efficiency and managing debt levels could further enhance financial 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	170.01B	170.01B	152.93B	142.46B	125.44B	116.39B
Gross Profit	53.86B	59.90B	47.58B	45.52B	51.72B	51.95B
EBITDA	40.63B	28.44B	41.34B	37.34B	39.29B	38.31B
Net Income	13.69B	13.69B	13.76B	13.43B	13.58B	13.31B
Balance Sheet
Total Assets	409.81B	409.81B	371.68B	377.12B	374.93B	358.62B
Cash, Cash Equivalents and Short-Term Investments	40.42B	40.42B	27.16B	23.33B	32.30B	19.06B
Total Debt	179.78B	179.78B	145.44B	142.63B	149.61B	142.77B
Total Liabilities	283.79B	283.79B	251.82B	263.23B	266.63B	255.92B
Stockholders Equity	120.09B	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: 161.05
• 50DMA: Negative
• 100DMA: Negative
• 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 161.05 is above the 20-day moving average (MA) of 159.67, below the 50-day MA of 168.30, and above the 200-day MA of 160.98, indicating a neutral trend. The MACD of -2.66 indicates Negative momentum. The RSI at 49.65 is Neutral, neither overbought nor oversold. The STOCH value of 75.20 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
NTPC	73 Outperform	₹3.16T	13.18		2.52%	1.47%	11.89%
ADANIPOWER	71 Outperform	₹2.44T	19.69		―	-1.07%	-22.35%
TORNTPOWER	71 Outperform	₹639.13B	22.85		1.50%	-2.95%	16.18%
JSWENERGY	67 Neutral	₹905.96B	41.64		0.38%	22.49%	6.11%
Sector *	66 Neutral	$17.50B	17.93	5.60%	3.63%	6.62%	11.55%
CESC	63 Neutral	₹213.48B	15.49		2.79%	9.43%	-2.06%
TATAPOWER	60 Neutral	₹1.24T	30.42		0.58%	4.23%	9.91%

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.