Buy CESC, target price Rs 100: JM Financial

JM Financial has buy call on CESC with a target price of Rs 100. The current market price of CESC is Rs 69.

CESC., incorporated in the year 1978, is a Mid Cap company (having a market cap of Rs 9259.11 Crore) operating in Power sector. CESC key Products/Revenue Segments include Electricity and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 3224.00 Crore, down -18.93 % from last quarter Total Income of Rs 3977.00 Crore and down -.31 % from last year same quarter Total Income of Rs 3234.00 Crore. Company has reported net profit after tax of Rs 336.00 Crore in latest quarter.

The company’s top management includes Dr.Sanjiv Goenka, Mr.Chandra Kumar Dhanuka, Mr.Pradip Kumar Kaitan, Mr.Sunil Mitra, Mr.Pratip Chaudhuri, Ms.Rekha Sethi, Mr.Debasish Banerjee, Mr.Rabi Chowdhury, Mr.Shashwat Goenka, Mr.Debanjan Mandal. Company has S R Batliboi & Co. LLP as its auditors. As on 31-12-2022, the company has a total of 133 Crore shares outstanding.

Investment Rationale
The brokerage expects CESC to report moderate revenue growth (+9%) and a flattish EBITDA on the back of stable Kolkata operations. Going forward, the key growth trigger for the company remains winning new distribution franchisees.

Promoter/FII Holdings
Promoters held 52.11 per cent stake in the company as of 31-Dec-2022, while FIIs owned 12.71 per cent, DIIs 21.99 per cent.