Power Stock to Buy: Amidst the volatility in the market, the stock of power sector company CESC (NSE: CESC) is rising.
After a sluggish start, the stock made a good recovery. After the company’s first quarter (Q1FY24) results, a top brokerage firm has advised buying CESC.
The company’s operating profit, revenue, and net profits have all increased on a per-year basis. If we take a look at its performance, it’s increased by 125 percent over a year.
CESC: Price Will Cross ₹ 200
The brokerage firm has advised buying CESC. In addition, the price target per share was raised by Rs. 180, to 207.
On August 9, 2024, the stock closed at 176. In this way, an upside of about 18 percent can be seen in the stock going forward.
In the last year, the return of CESC is around 125 percent. So far in 2024, the stock has jumped about 30 percent.
The return of the stock has been 44 percent in 6 months and 35 percent in 3 months. The 52-week peak of the share price on the BSE has been 192.90 and the lowest is 76.68.
The market value for the firm is more than 23396 crores. On 12 August, the share price of the company is Rs 175.
CESC: What Is The Opinion Of The Brokerage
The brokerage house says that CESC’s revenue grew 21 percent (YoY) to Rs 5500 crore in the first quarter.
At the same time, EBITDA jumped 7 percent to 1100 crores and net profit increased 9 percent to Rs 380 crore (YoY).
The company’s revenue has increased tremendously due to increased sales in the Kolkata license area and Noida.
The company’s subsidiary Dhariwal has benefited from higher merchant prices. The profit of the subsidiary was 110 crores. Which was Rs 72 crore in the same quarter a year ago.
According to the brokerage, the best thing for the company in this quarter was that recovery for fuel and power purchase costs had started.
Due to this, cash flow from distribution assets is expected to improve in FY25E.
It is moving to renewable energy sources. Two agreements have been made with wind OEMs. Land has also been acquired for 3GW.
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