Mehabe score: 4 G Factor: 5 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 5 and Piotski score of 8.
Description
CESC (Calcutta Energy Supply Corporation) Limited is a flagship company of the RP-Sanjiv Goenka Group. It is engaged in electricity
distribution with embedded generation facility, across 567 square kilometres of its licensed area in Kolkata, Howrah, Hooghly, North and South 24 Parganas in West Bengal. CESC supplies safe, cost-effective and reliable electricity to around 3.3 million customers. It also has power distribution business in Noida, Rajasthan and Malegaon, Maharashtra.
Main Points
Distribution Business
Kolkata – The Company is engaged in business of distribution of electricity across 567 square kilometres of licensed area in Kolkata and Howrah and in the adjoining areas, West Bengal. It is the sole power distribution licensee in its coverage area in Kolkata and its license is valid till September, 2038. It has 33 lakhs customers with a peak load of 2,300+ MW.Site:CESC
Market Cap:
Rs 10,209 cr
Price:
770.0
Trading pe:
7.67x
Book-value:
759/share
Div yield:
5.84 %
Earning yield:
13.59%
Face-value:
10.0/share
52week high:
800.00
52week low:
538.65
Technical Analysis
Stock trades at 770.0, above its 50dma 678.24. It also trades above its 200dma 637.66. The stock remains bullish on techicals
The 52 week high is at 800.00 and the 52week low is at 538.65
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 1.01 times its book value
-Stock is providing a good dividend yield of 5.84%.
– has delivered good profit growth of 46.18% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 19.22%
Weakness
– The company has delivered a poor sales growth of -0.09% over past five years.
– has a low return on equity of 12.37% for last 3 years.
-Earnings include an other income of Rs.1031.00 Cr.
Competition
– The industry trades at a mean P/E of 23.6x. Adani Green trades at the industry’s max P/E of 874.8x. CESC trades at a P/E of 7.67x
– Industry’s mean G-Factor is 2.9 while the mean Piotski score is 8.0. CESC has a G-Factor of 5 and Piotski scoreof 8.
– Average 1 month return for industry is 17.6%. The max 1- month return was given by JSW Energy: a return of 45.44 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 2890.0 cr compared to Rs 2621.0 cr for period ended Mar 2020, a rise of 10.3%
Operating Profits reported at Rs 840.0 cr for period ended Mar 2021 vis-vis 580.0 for period ended Mar 2020 .
Operating Margins expanded 693.7 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 31.9 compared to Rs 24.74 for previous quarter ended Dec 2020 and Rs 27.6 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 11639.0 cr for period ended Mar 2021 vis-vis sales of Rs 11015.0 cr for the period ended Mar 2020, a growth of 5.4%. The 3 year sales cagr stood at 4.2%.
Net Profit reported at Rs 1331.0 cr for period ended Mar 2021 vis-vis sales of Rs 1302.0 cr for the period ended Mar 2020, rising 2.2%.
Company recorded a healthy Net Profit CAGR of 13.4% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 14.0% compared to 12.0% over the last 3 Years. – The stock has given a return of 27% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is -5% vis-vis a compounded sales growth of 10% over the last 3 Years. – The compounded profit growth on a TTM basis is 4% vis-vis a compounded profit growth of 25% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 14.7% vis-vis 14.89% for Dec 2020 – Public shareholding has risen for the period ended Mar 2021. The Mar 2021 public holding stood at 11.53% vis-vis 9.49% for Dec 2020
Conclusion
– Stock is trading at 1.01 times its book value
-Stock is providing a good dividend yield of 5.84%.
– has delivered good profit growth of 46.18% CAGR over last 5 years
– has been maintaining a healthy dividend payout of 19.22% – The company has delivered a poor sales growth of -0.09% over past five years.
– has a low return on equity of 12.37% for last 3 years.
-Earnings include an other income of Rs.1031.00 Cr.
