Buy CESC, target price Rs 980: Emkay Global

Emkay Global has buy call on CESC Ltd. with a target price of Rs 980. The current market price of CESC Ltd. is Rs 854.5. Time period given by analyst is one year when CESC Ltd. price can reach defined target.

CESC Ltd., incorporated in the year 1978, is a Mid Cap company (having a market cap of Rs 11460.22 Crore) operating in Power sector.

Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 3003.00 Crore, up 16.35 % from last quarter Total Income of Rs 2581.00 Crore and up 18.51 % from last year same quarter Total Income of Rs 2534.00 Crore. Company reported net profit after tax of Rs 429.00 Crore in latest quarter.


Investment Rationale
The brokerage assumes coverage on CESC with a Buy rating and SoTP-based FY23E TP of Rs980. The Kolkata distribution and generation unit (standalone business) is valued at Rs648/share.

Promoter/FII Holdings
Promoters held 49.9 per cent stake in the company as of March 31, 2021, while FIIs held 0 per cent, DIIs 23.8 per cent and public and others 26.3 per cent.