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CESC Ltd (IN:CESC)
:CESC
India Market
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CESC Ltd (CESC) AI Stock Analysis

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IN:CESC

CESC Ltd

(CESC)

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Neutral 63 (OpenAI - 5.2)
Rating:63Neutral
Price Target:
₹173.00
▲(6.07% Upside)
Action:Downgraded
Date:05/09/26
The score is driven primarily by weakening financial quality (margin compression, higher leverage, and negative free cash flow). These risks are partly offset by positive technical momentum and a supportive valuation with a moderate P/E and solid dividend yield.
Positive Factors
Regulated distribution franchise
CESC’s licensed distribution franchise in Kolkata creates durable, quasi-captive demand and regulatory revenue mechanisms. That structural position supports predictable volumes and tariff-regulated cash flows, reducing customer-churn risk and providing multi-month visibility for planning and capex.
Negative Factors
Rising leverage
The meaningful increase in leverage constrains financial flexibility for a capital-intensive utility. Higher debt levels raise interest burdens, limit room for discretionary capex or tariff lag absorption, and increase refinancing and covenant sensitivity over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Regulated distribution franchise
CESC’s licensed distribution franchise in Kolkata creates durable, quasi-captive demand and regulatory revenue mechanisms. That structural position supports predictable volumes and tariff-regulated cash flows, reducing customer-churn risk and providing multi-month visibility for planning and capex.
Read all positive factors

CESC Ltd (CESC) vs. iShares MSCI India ETF (INDA)

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 two thermal power plants, including Budge Budge generating station with a generating capacity of 750 m...
How the Company Makes Money
CESC primarily makes money by selling electricity to customers within its licensed distribution area. Its core revenue model is utility-based: it procures and/or generates electrical energy, delivers it through its distribution infrastructure, and...

CESC Ltd Financial Statement Overview

Summary
Steady revenue growth and stable net margin are positives, but operating margins have compressed materially. Rising leverage (debt-to-equity ~1.73) reduces flexibility, and free cash flow turned sharply negative in 2026 with weak cash conversion, making cash flow the key risk.
Income Statement
63
Positive
Balance Sheet
52
Neutral
Cash Flow
41
Neutral
BreakdownMar 2026Mar 2025Mar 2024Mar 2023Mar 2022
Income Statement
Total Revenue185.70B170.01B152.93B142.46B125.44B
Gross Profit44.04B53.94B47.58B45.52B51.72B
EBITDA34.47B44.25B42.28B38.10B39.79B
Net Income15.42B13.69B13.76B13.43B13.58B
Balance Sheet
Total Assets464.70B409.81B371.68B377.12B374.93B
Cash, Cash Equivalents and Short-Term Investments56.71B40.42B25.90B25.75B32.30B
Total Debt216.71B179.78B145.44B142.63B149.61B
Total Liabilities332.81B283.79B251.82B263.23B266.63B
Stockholders Equity125.30B120.09B114.46B109.10B103.96B
Cash Flow
Free Cash Flow-12.32B7.19B15.80B12.83B17.21B
Operating Cash Flow26.84B25.82B23.51B19.78B24.99B
Investing Cash Flow-34.17B-30.13B-5.64B-5.45B-5.75B
Financing Cash Flow27.60B13.37B-16.42B-24.57B-6.11B

CESC Ltd Technical Analysis

Technical Analysis Sentiment
Negative
Last Price163.10
Price Trends
50DMA
168.58
Negative
100DMA
169.45
Negative
200DMA
166.80
Negative
Market Momentum
MACD
-1.16
Negative
RSI
41.79
Neutral
STOCH
26.81
Neutral
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 163.1 is below the 20-day moving average (MA) of 163.88, below the 50-day MA of 168.58, and below the 200-day MA of 166.80, indicating a bearish trend. The MACD of -1.16 indicates Negative momentum. The RSI at 41.79 is Neutral, neither overbought nor oversold. The STOCH value of 26.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IN:CESC.

CESC Ltd Peers Comparison

Overall Rating
UnderperformOutperform
Sector (55)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
67
Neutral
₹25.04B6.222.60%18.70%87.05%
66
Neutral
₹412.80B11.411.74%14.45%34.37%
65
Neutral
₹3.37T12.132.55%2.36%15.86%
63
Neutral
₹219.51B14.293.68%9.23%12.18%
61
Neutral
₹24.67B0.83-13.36%-43.06%
55
Neutral
$6.65B3.83-15.92%6.20%10.91%7.18%
51
Neutral
₹7.16B61.710.70%10.10%64.96%
* General Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
IN:CESC
CESC Ltd
162.50
2.08
1.30%
IN:DPSCLTD
India Power Corp. Ltd.
7.43
-4.49
-37.67%
IN:GIPCL
Gujarat Industries Power Co. Ltd.
159.05
-29.04
-15.44%
IN:NLCINDIA
NLC India Limited
303.75
75.07
32.83%
IN:NTPC
NTPC Limited
344.00
22.49
6.99%
IN:RELINFRA
Reliance Infrastructure Limited
73.45
-208.50
-73.95%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: May 09, 2026