CESC Ltd (CESC) AI Stock Analysis

• Market Cap: ₹208.38B
• Dividend Yield: 3.56%
• Average Volume (3M): 158.22K
• Price to Earnings (P/E): 14.4
• Beta (1Y): 1.53
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 73 Outperform
• Price Target: ₹175.00 ▲(0.89% 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 ~11% TTM revenue growth signals durable end-market demand and an expanding footprint across generation, distribution and renewables. Over a 2-6 month horizon this supports predictable cash flows, funds multi-year capex and strengthens negotiating leverage for long-term PPAs and regulated tariffs.

Profitability Margins

A gross profit margin near 35% and net margin around 8% indicate structural profitability and effective cost controls across generation and distribution. These margins provide a durable buffer against fuel cost swings and regulatory timing, sustaining reinvestment capacity and shareholder returns over time.

Operating Cash Generation

An operating cash flow to net income ratio of ~1.89 evidences high cash conversion and earnings quality. Reliable OCF underpins debt servicing, ongoing capex and working capital needs in a capital-intensive utility, reducing reliance on external financing across multiple reporting periods.

Negative Factors

Moderate Leverage

Debt-to-equity of about 1.5 denotes moderate leverage for a regulated power utility. While manageable, this level increases interest and refinancing exposure, potentially constraining the company’s ability to fund large projects or absorb tariff shortfalls without issuing equity or raising costly debt.

Negative Free Cash Flow Growth

Negative free cash flow growth driven by elevated capex implies investments are consuming operating cash. If this trend persists beyond the near term, it could pressure liquidity, force incremental borrowing, or limit dividend policy, affecting financial flexibility during the multi-year investment cycle.

EBIT Margin Variability

EBIT margin variability indicates fluctuations in core operating efficiency, likely driven by fuel costs, plant utilization or tariff timing. Persistent variability undermines earnings predictability and complicates multi-year planning, requiring operational improvements to stabilize long-term returns.

CESC Ltd Business Overview & Revenue Model

Company Description

CESC Limited, an integrated electrical utility company, engages in the generation and distribution of electricity in India. It owns and operates three thermal power plants, including Budge Budge, Southern, and Titagarh generating stations generating 1125 megawatts (MW) of power; a thermal power project with a capacity of 600 MW in Haldia, West Bengal; two thermal power projects with a capacity of 600 MW in Chandrapur, Maharashtra and 40 MW atmospheric fluidized bed combustion power plant in Asansol, West Bengal; and transmission and distribution network of 23468 circuit kms, and distributes power in Uttar Pradesh with license area of 335 square kilometers. The company also owns and operates solar power project with a capacity of 18 MW data center in Ramanathapuram, Tamil Nadu. It serves approximately 3.5 million domestic, industrial, and commercial users in 567 square kilometers of Kolkata and Howrah. CESC Limited was founded in 1899 and is headquartered in Kolkata, India.

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: Negative
• Last Price: 173.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IN:CESC, the sentiment is Negative. The current price of 173.45 is above the 20-day moving average (MA) of 166.10, above the 50-day MA of 169.13, and above the 200-day MA of 163.69, indicating a bearish trend. The MACD of -3.03 indicates Positive momentum. The RSI at 30.33 is Neutral, neither overbought nor oversold. The STOCH value of 4.74 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	₹677.60B	22.54	―	1.48%	-1.26%	27.83%
NTPC	73 Outperform	₹3.39T	14.25	―	2.66%	1.68%	7.60%
CESC	73 Outperform	₹208.38B	14.37	―	3.56%	10.58%	2.69%
Sector *	66 Neutral	$17.65B	18.10	5.60%	3.62%	6.62%	11.55%
TATAPOWER	65 Neutral	₹1.17T	28.97	―	0.59%	4.06%	8.22%
JSWENERGY	63 Neutral	₹864.45B	42.67	―	0.41%	39.71%	1.33%
ADANIPOWER	62 Neutral	₹2.75T	22.87	―	―	-0.70%	-5.41%

CESC Ltd Corporate Events

CESC Announces Demise of Independent Director Sunil Mitra

CESC Ltd has announced the passing of independent director Sunil Mitra on 12 January 2026, informing the stock exchanges in compliance with SEBI’s listing and disclosure regulations. The board highlighted Mitra’s extensive knowledge and experience, noting that his unexpected demise represents a significant loss for the company and expressing condolences to his family, while the change in board composition will likely necessitate future adjustments to its independent director representation in line with regulatory requirements.

CESC to Close Trading Window Ahead of Q3 FY26 Results

CESC Limited has announced that, in line with SEBI (Prohibition of Insider Trading) Regulations, 2015 and its internal Insider Trading Prohibition Code, the trading window for dealing in the company’s securities by designated persons will be closed from January 1, 2026 until 48 hours after the declaration of its unaudited financial results for the third quarter and nine months ended December 31, 2025. The company will announce the date of the board meeting for approving these results in due course, and the move underscores its adherence to regulatory norms on insider trading and corporate governance ahead of its upcoming financial disclosures.

CESC Announces Shareholder Updates and Compliance Efforts

CESC Limited has issued a notice regarding the transfer of equity shares to the Investor Education and Protection Fund (IEPF) for unclaimed dividends over multiple years. The company has also introduced a special window for shareholders to re-submit their transfer requests for physical shares, highlighting its efforts to streamline shareholder interactions and comply with regulatory obligations.