Buy CESC with a target of Rs 750: IIFL

IIFL has Buy call on CESC Ltd. with a target price of Rs 750 . The current market price of CESC Ltd. is Rs 637.1 . Time period given by analyst is year when CESC Ltd. price can reach defined target.
IIFL is positive on CESC due to sector beating earnings growth of >25% CAGR till FY19E on the back of commencement of Chandarpur IPP PPA (600MW) and stable Kolkata utility business. Lower fuel costs and efficient energy sourcing from Haldia plant will improve margins. The stock is currently priced at 5.5x FY17E EV EBITDA.
Any monetisation of non-core retail business will lead to further triggers for the stock.