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 of Kolkata, Howrah, Hooghly, and North and South 24 Parganas in West Bengal in India. More Details
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 is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: CESC's weekly volatility (4%) has been stable over the past year.
Market Performance
7 Day Return
11.0%
CESC
-0.7%
IN Electric Utilities
-0.3%
IN Market
1 Year Return
-10.2%
CESC
11.5%
IN Electric Utilities
15.9%
IN Market
Return vs Industry: CESC underperformed the Indian Electric Utilities industry which returned 11.5% over the past year.
Return vs Market: CESC underperformed the Indian Market which returned 15.9% over the past year.
Shareholder returns
| CESC | Industry | Market | |
|---|---|---|---|
| 7 Day | 11.0% | -0.7% | -0.3% |
| 30 Day | 12.5% | 5.3% | 4.9% |
| 90 Day | 19.8% | 32.3% | 24.5% |
| 1 Year | -7.6%-10.2% | 18.1%11.5% | 18.0%15.9% |
| 3 Year | -33.3%-37.6% | 14.2%2.1% | 9.7%4.4% |
| 5 Year | 70.3%54.2% | 92.0%63.9% | 82.1%68.4% |
Long-Term 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
1 day ago | Simply Wall St
Is CESC Limited (NSE:CESC) A High Quality Stock To Own?2 weeks ago | Simply Wall St
Is CESC (NSE:CESC) A Risky Investment?2 months ago | Simply Wall St
CESC Limited Beat Revenue Forecasts By 9.7%: Here's What Analysts Are Forecasting NextValuation
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 (₹691.75) is trading below our estimate of fair value (₹2033.6)
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 (6.9x) compared to the IN Electric Utilities industry average (18.5x).
PE vs Market: CESC is good value based on its PE Ratio (6.9x) compared to the Indian market (19.5x).
Price to Earnings Growth Ratio
PEG Ratio: CESC is good value based on its PEG Ratio (0.8x)
Price to Book Ratio
PB vs Industry: CESC is good value based on its PB Ratio (0.9x) compared to the IN Electric Utilities industry average (1.2x).
Next Steps
Future Growth
How is CESC forecast to perform in the next 1 to 3 years based on estimates from 12 analysts?
8.4%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CESC's forecast earnings growth (8.4% per year) is above the savings rate (7%).
Earnings vs Market: CESC's earnings (8.4% per year) are forecast to grow slower than the Indian market (25.5% per year).
High Growth Earnings: CESC's earnings are forecast to grow, but not significantly.
Revenue vs Market: CESC's revenue (7.1% per year) is forecast to grow slower than the Indian market (11.7% per year).
High Growth Revenue: CESC's revenue (7.1% 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 (12.8%).
Next Steps
Past Performance
How has CESC performed over the past 5 years?
17.0%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CESC has high quality earnings.
Growing Profit Margin: CESC's current net profit margins (12.8%) are higher than last year (11.7%).
Past Earnings Growth Analysis
Earnings Trend: CESC's earnings have grown by 17% per year over the past 5 years.
Accelerating Growth: CESC's earnings growth over the past year (4.5%) is below its 5-year average (17% per year).
Earnings vs Industry: CESC earnings growth over the past year (4.5%) underperformed the Electric Utilities industry 5.3%.
Return on Equity
High ROE: CESC's Return on Equity (13.2%) is considered low.
Next Steps
Financial Health
How is CESC's financial position?
Financial Position Analysis
Short Term Liabilities: CESC's short term assets (₹58.2B) do not cover its short term liabilities (₹66.4B).
Long Term Liabilities: CESC's short term assets (₹58.2B) do not cover its long term liabilities (₹183.2B).
Debt to Equity History and Analysis
Debt Level: CESC's debt to equity ratio (121.7%) is considered high.
Reducing Debt: CESC's debt to equity ratio has reduced from 139.6% to 121.7% over the past 5 years.
Debt Coverage: CESC's debt is not well covered by operating cash flow (11.8%).
Interest Coverage: CESC's interest payments on its debt are not well covered by EBIT (1.5x coverage).
Balance Sheet
Next Steps
Dividend
What is CESC current dividend yield, its reliability and sustainability?
6.51%
Current Dividend Yield
Upcoming Dividend Payment
Dividend Yield vs Market
Notable Dividend: CESC's dividend (6.51%) is higher than the bottom 25% of dividend payers in the Indian market (0.44%).
High Dividend: CESC's dividend (6.51%) is in the top 25% of dividend payers in the Indian market (1.81%)
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 reasonably low payout ratio (44.8%), 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 (34.4% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
2.7yrs
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 | 2.67yrs | ₹49.20m | no data | |
| CFO & Executive Director | no data | ₹19.60m | 0.000090% ₹ 82.5k | |
| Compliance Officer | no data | ₹20.50m | 0.000080% ₹ 73.4k | |
| Executive Director of Corporate Development | no data | ₹2.68m | no data | |
| MD of Generation & Executive Director | 2.67yrs | no data | 0.00017% ₹ 155.9k | |
| Executive Director of Program Implementation | no data | ₹2.84m | no data | |
| Advisor to the Chairman | 7.5yrs | ₹4.23m | no data |
2.7yrs
Average Tenure
71yo
Average Age
Experienced Management: CESC's management team is considered experienced (2.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| MD of Distribution & Executive Director | 2.67yrs | ₹49.20m | no data | |
| MD of Generation & Executive Director | 2.67yrs | no data | 0.00017% ₹ 155.9k | |
| Non-Executive Chairman | 7.67yrs | ₹1.80m | 0.13% ₹ 119.5m | |
| Independent Director | 8.67yrs | ₹1.50m | no data | |
| Non-Executive Non Independent Director | 28.25yrs | ₹1.00m | no data | |
| Additional Independent Director | 1.17yrs | ₹200.00k | no data | |
| Independent Director | 6.25yrs | ₹1.40m | no data | |
| Vice Chairman of the Board | 1.17yrs | ₹100.00k | 0.084% ₹ 77.1m | |
| Independent Director | 6.67yrs | ₹700.00k | no data | |
| Independent Director | 6.42yrs | ₹900.00k | no data |
6.3yrs
Average Tenure
62.5yo
Average Age
Experienced Board: CESC's board of directors are considered experienced (6.3 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: 1899
- Industry: Electric Utilities
- Sector: Utilities
- Market Cap: ₹91.696b
- Shares outstanding: 132.56m
- Website: https://www.cesc.co.in
Number of Employees
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 |
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 t...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 12:07 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/03/31 |
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.