Buy CESC, target Rs 1165: Sharekhan

Sharekhan has a buy call on CESC Ltd. with a target price of Rs 1165. The current market price of CESC Ltd. is Rs 1036.7. Time period given by the brokerage is a year when CESC Ltd. price can reach the defined target.

CESC Ltd., incorporated in 1978, is a large-cap company with a market cap of Rs 13524.80 crore.

Investment rationale by Sharekhan
CESC has showed decent performance on a standalone basis in FY2018. Moreover, improved performance in Spencer and lower losses at Chandrapur plant is also encouraging.

Signing of PPA for balance 300MW of Chandrapur plant and expected improvement in Spencer in FY2019 will help reduce losses. Hence, we reiterate our Buy rating with an unchanged price target of Rs 1165 on SoTP basis. We have not factored the restructuring of CESC.