Check Before You Invest : CESC Ltd

Snapshot

Q.1 Which industry/sub-sector does CESC Ltd belong to?

CESC Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is CESC Ltd a good quality company?

CESC Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is CESC Ltd undervalued or overvalued?

CESC Ltd appears Overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is CESC Ltd a good buy now?

CESC Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of CESC Ltd?

CESC Ltd revenue growth is 11.4% for FY-2025, which is above its 5-year CAGR of 4.11%, indicating faster growth.

Q.2 Return on capital employed (ROCE) of CESC Ltd?

CESC Ltd Return on capital employed is 10.09% for FY-2025, which is above its 5-year historical median of 9.46%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 13.5%, indicating value preservation.

Q.3 Return on Asset of CESC Ltd?

CESC Ltd Return on Asset is 2.73%, which is below its 5-year historical median of 2.93%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of CESC Ltd?

CESC Ltd Return on equity is 8.09% for FY-2025, which is in line with its 5-year historical median of 8.14%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of CESC Ltd?

CESC Ltd Cash conversion cycle is 3 days, below its 5-year historical median of 35 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.33	0.28
ROE	8.09	8.14
ROCE	10.09	9.46
Cash Conversion Cycle	3 days	35 days

Q.6 Gross Profit margin of CESC Ltd?

CESC Ltd Gross profit margin which is the profit after deduction of direct costs, is 6.5% for FY-2025, which is below its 5-year median of 9.4%, indicating decreasing margins.

Q.7 Operating Profit Margin of CESC Ltd?

CESC Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 14.99% for FY-2025, which is below its 5-year median of 16.14% indicating decreasing margins.

Q.8 Net Profit Margin of CESC Ltd?

CESC Ltd Net Profit Margin is 8.35% for FY-2025, is below with its 5-year median of 10.41%, indicating decreasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	6.5	9.4
Operating Profit Margin	14.99	16.14
Net Profit Margin	8.35	10.41

Q.9 Debt to Equity ratio of CESC Ltd?

CESC Ltd Debt-to-Equity ratio is 1.17, which is above with the industry average of 0.39, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of CESC Ltd?

CESC Ltd Debt to cash flow from operations is 6.35, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of CESC Ltd?

Promoters hold 52.11% of the CESC Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of CESC Ltd vs industry peers?

CESC Ltd revenue CAGR is 4.11%, compared to the industry median CAGR of 0.59%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	11.4	0.6
Gross Profit Growth	325.3	-0.1
Operating Profit Growth	63.2	NAN
Net Profit Growth	3.2	-3.2

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.33	0.13
ROE	8.09	2.44
ROCE	10.09	4.39
Cash Conversion Cycle (days)	2.7	63

Valuation & price assessment

Q.1 Stock return of CESC Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 13.4% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	13.4%	24.4%	40.5%	18%

Q.3 Valuation ratios of CESC Ltd vs historical?

The current P/E is higher that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	29.34	14.69	27.19
Price to Book	2.39	1.19	1.80
Price to Sales	2.56	1.63	6.78
EV to EBITDA	12.99	9.99	13.53

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