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.
Rewards
Risk Analysis
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
| CESC | Industry | Market | |
|---|---|---|---|
| 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 Year | 3.4%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 Year | 30.1%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
2 weeks ago | Simply Wall St
Is CESC Limited's (NSE:CESC) ROE Of 13% Impressive?1 month ago | Simply Wall St
Shareholders Should Look Hard At CESC Limited’s (NSE:CESC) 7.6%Return On Capital1 month ago | Simply Wall St
Introducing CESC (NSE:CESC), A Stock That Climbed 16% In The Last Three YearsValuation
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
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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD of Distribution & Executive Director | 1.8yrs | ₹54.18m | no data | |
| CFO & Executive Director | 0yrs | ₹19.60m | 0.000090% ₹83.2k | |
| Compliance Officer | 0yrs | ₹20.50m | 0.000080% ₹74.0k | |
| Executive Director of Corporate Development | 0yrs | ₹2.68m | no data | |
| MD of Generation & Executive Director | 1.8yrs | no data | 0.00017% ₹157.2k | |
| Executive Director of Program Implementation | 0yrs | ₹2.84m | no data | |
| Advisor to the Chairman | 6.6yrs | ₹4.23m | no 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
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD of Distribution & Executive Director | 1.8yrs | ₹54.18m | no data | |
| MD of Generation & Executive Director | 1.8yrs | no data | 0.00017% ₹157.2k | |
| Non-Executive Chairman | 6.8yrs | ₹1.80m | 0.13% ₹120.6m | |
| Independent Director | 7.8yrs | ₹1.10m | no data | |
| Non-Executive Non Independent Director | 27.3yrs | ₹1.00m | no data | |
| Additional Independent Director | 0.3yrs | no data | no data | |
| Independent Director | 5.3yrs | ₹500.00k | no data | |
| Vice Chairman of the Board & Additional Director | 0.3yrs | no data | 0.084% ₹77.7m | |
| Independent Director | 5.8yrs | ₹600.00k | no data | |
| Independent Director | 5.5yrs | ₹600.00k | no 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 500084 | BSE (Mumbai Stock Exchange) | Yes | Equity Shares | IN | INR | Mar 1994 |
| CESC | NSEI (National Stock Exchange of India) | Yes | Equity Shares | IN | INR | Mar 1994 |
| CESC | BDL (Bourse de Luxembourg) | GDR-REPR 1 ORD INR10 REG S | LU | USD | Aug 1994 | |
| CES05 | BDL (Bourse de Luxembourg) | GDR-REPR 1 ORD INR10 REG'S' (TEMP) | LU | USD | Apr 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/24 13:03 |
| End of Day Share Price | 2020/02/24 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/03/31 |
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.