NSEI:CESC

Stock Analysis Report

Executive Summary

CESC Limited, an integrated electrical utility company, engages in the generation, transmission, and distribution of electricity to approximately 3.3 million domestic, industrial, and commercial users in the area of 567 square kilometers (km) of Kolkata and Howrah, West Bengal in India.


Snowflake Analysis

Very undervalued 6 star dividend payer.


Similar Companies

Share Price & News

How has CESC's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CESC has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-3.3%

CESC

-0.4%

IN Electric Utilities

-1.4%

IN Market


1 Year Return

0.5%

CESC

5.7%

IN Electric Utilities

6.4%

IN Market

Return vs Industry: CESC underperformed the Indian Electric Utilities industry which returned 7.7% over the past year.

Return vs Market: CESC underperformed the Indian Market which returned 9.5% over the past year.


Shareholder returns

CESCIndustryMarket
7 Day-3.3%-0.4%-1.4%
30 Day-9.9%-6.8%-3.3%
90 Day-7.3%-0.9%0.4%
1 Year3.4%0.5%9.1%5.7%8.4%6.4%
3 Year-13.9%-19.4%7.9%-0.03%20.9%14.1%
5 Year30.1%15.9%14.4%1.6%30.7%18.5%

Price Volatility Vs. Market

How volatile is CESC's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CESC undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CESC (₹678.6) is trading below our estimate of fair value (₹2190.93)

Significantly Below Fair Value: CESC is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CESC is good value based on its PE Ratio (7.1x) compared to the Electric Utilities industry average (10.2x).

PE vs Market: CESC is good value based on its PE Ratio (7.1x) compared to the Indian market (13.3x).


Price to Earnings Growth Ratio

PEG Ratio: CESC is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: CESC is good value based on its PB Ratio (1x) compared to the IN Electric Utilities industry average (1x).


Next Steps

Future Growth

How is CESC forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

10.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CESC's forecast earnings growth (10.3% per year) is above the savings rate (6.5%).

Earnings vs Market: CESC's earnings (10.3% per year) are forecast to grow slower than the Indian market (20.5% per year).

High Growth Earnings: CESC's earnings are forecast to grow, but not significantly.

Revenue vs Market: CESC's revenue (5% per year) is forecast to grow slower than the Indian market (9% per year).

High Growth Revenue: CESC's revenue (5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CESC's Return on Equity is forecast to be low in 3 years time (12.6%).


Next Steps

Past Performance

How has CESC performed over the past 5 years?

25.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CESC has high quality earnings.

Growing Profit Margin: CESC's current net profit margins (11.7%) are higher than last year (10.4%).


Past Earnings Growth Analysis

Earnings Trend: CESC's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: CESC's earnings growth over the past year (16.2%) is below its 5-year average (25.4% per year).

Earnings vs Industry: CESC earnings growth over the past year (16.2%) exceeded the Electric Utilities industry 12.8%.


Return on Equity

High ROE: CESC's Return on Equity (13.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CESC's financial position?


Financial Position Analysis

Short Term Liabilities: CESC's short term assets (₹54.2B) do not cover its short term liabilities (₹71.3B).

Long Term Liabilities: CESC's short term assets (₹54.2B) do not cover its long term liabilities (₹176.6B).


Debt to Equity History and Analysis

Debt Level: CESC's debt to equity ratio (125.6%) is considered high.

Reducing Debt: CESC's debt to equity ratio has reduced from 197.9% to 125.6% over the past 5 years.

Debt Coverage: CESC's debt is well covered by operating cash flow (21%).

Interest Coverage: CESC's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet

Inventory Level: CESC has a high level of physical assets or inventory.

Debt Coverage by Assets: CESC's debt is not covered by short term assets (assets are 0.5x debt).


Next Steps

Dividend

What is CESC's current dividend yield, its reliability and sustainability?

2.95%

Current Dividend Yield


Dividend Yield vs Market

company2.9%marketbottom25%0.6%markettop25%2.6%industryaverage4.3%forecastin3Years2.8%

Current dividend yield vs market & industry

Notable Dividend: CESC's dividend (2.95%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: CESC's dividend (2.95%) is in the top 25% of dividend payers in the Indian market (2.59%)


Stability and Growth of Payments

Stable Dividend: CESC's dividends per share have been stable in the past 10 years.

Growing Dividend: CESC's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (18.2%), CESC's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CESC's dividends in 3 years are forecast to be well covered by earnings (18.6% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

CESC has no CEO, or we have no data on them.


Leadership Team

NamePositionTenureCompensationOwnership
Debasish Banerjee
MD of Distribution & Executive Director1.8yrs₹54.18mno data
Rajarshi Banerjee
CFO & Executive Director0yrs₹19.60m0.000090% 83.2k
Subhasis Mitra
Compliance Officer0yrs₹20.50m0.000080% 74.0k
S. Chatterjee
Executive Director of Corporate Development0yrs₹2.68mno data
Rabi Chowdhury
MD of Generation & Executive Director1.8yrsno data0.00017% 157.2k
D. Guha
Executive Director of Program Implementation0yrs₹2.84mno data
Sumantra Banerjee
Advisor to the Chairman6.6yrs₹4.23mno data

1.8yrs

Average Tenure

70yo

Average Age

Experienced Management: CESC's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Debasish Banerjee
MD of Distribution & Executive Director1.8yrs₹54.18mno data
Rabi Chowdhury
MD of Generation & Executive Director1.8yrsno data0.00017% 157.2k
Sanjiv Goenka
Non-Executive Chairman6.8yrs₹1.80m0.13% 120.6m
Chandra Dhanuka
Independent Director7.8yrs₹1.10mno data
Pradip Khaitan
Non-Executive Non Independent Director27.3yrs₹1.00mno data
Sunil Mitra
Additional Independent Director0.3yrsno datano data
Pratip Chaudhuri
Independent Director5.3yrs₹500.00kno data
Shashwat Goenka
Vice Chairman of the Board & Additional Director0.3yrsno data0.084% 77.7m
Rekha Sethi
Independent Director5.8yrs₹600.00kno data
Kalaikuruchi Jairaj
Independent Director5.5yrs₹600.00kno data

5.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CESC's board of directors are considered experienced (5.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

CESC Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CESC Limited
  • Ticker: CESC
  • Exchange: NSEI
  • Founded: 1897
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₹92.498b
  • Shares outstanding: 132.56m
  • Website: https://www.cesc.co.in

Location

  • CESC Limited
  • CESC House
  • Chowringhee Square
  • Kolkata
  • West Bengal
  • 700001
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
500084BSE (Mumbai Stock Exchange)YesEquity SharesININRMar 1994
CESCNSEI (National Stock Exchange of India)YesEquity SharesININRMar 1994
CESCBDL (Bourse de Luxembourg)GDR-REPR 1 ORD INR10 REG SLUUSDAug 1994
CES05BDL (Bourse de Luxembourg)GDR-REPR 1 ORD INR10 REG'S' (TEMP)LUUSDApr 2006

Biography

CESC Limited, an integrated electrical utility company, engages in the generation, transmission, and distribution of electricity to approximately 3.3 million domestic, industrial, and commercial users in the area of 567 square kilometers (km) of Kolkata and Howrah, West Bengal in India. It owns and operates three thermal power plants, including Budge Budge, Southern, and Titagarh generating stations generating 1125 megawatts (MW) of power; two thermal power plants with a capacity of power in Chandrapur, Maharashtra, and Haldia, West Bengal; and transmission and distribution systems that comprise 474 km circuit of transmission lines linking the company’s generating and receiving stations with 105 distribution stations, as well as 8,211 km circuit of HT lines, and 12,269 km circuit of LT lines. The company also owns and operates a solar plant in Gujarat’s Kutch generating 9MW of solar energy; hydro power venture in Arunachal Pradesh generating 146 MW energy; and wind power plant, a 24 MW project at Dangi in Rajasthan. The company was formerly known as The Calcutta Electric Supply Corporation (India) Limited and changed its name to CESC Limited in January 1987. CESC Limited was founded in 1897 and is headquartered in Kolkata, India. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 13:03
End of Day Share Price2020/02/24 00:00
Earnings2019/12/31
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.