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CESC Ltd Stock Analysis

Mid Cap
Evaluated by 2513 users | BSE: 500084 | NSE: CESC |
Power Generation/Distribution

CESC is India’s first fully integrated electrical utility company and it has been on an epic ride ever since 1899 in generating and distributing power in Kolkata and Howrah. The company has private participation in generation, transmission and...

Analysis of Financial Track Record

Data adjusted to bonus, split, extra-ordinary income, rights issue and change in financial year end
Financial track record gives insight into the company's performance on key parameters over the past ten years. MoneyWorks4me’s proprietary colour codes make it easy for retail investors to gauge the company’s past performance.
CESC Ltd has performed well in majority of the past ten years indicating its past ten year financial track record is very good
Value Creation
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Capital Employed 7.87%8.87%10.08%9.25%8.36%7.51%5.84%6.27%5.97%6%
Growth Parameters
Growth Parameters Colour Code Guide
Net Sales (Rs. Cr.) 4,1734,6815,3035,5106,1896,7967,2207,7867,7547,836
Y-o-Y Gr. Rt.-12.2%13.3%3.9%12.3%9.8%6.2%7.8%-0.4%1.1%
Adjusted EPS (Rs.) 37.7143.6955.0653.8350.6660.3453.4750.8240.0138.81
Y-o-Y Gr. Rt.-15.9%26%-2.2%-5.9%19.1%-11.4%-5%-21.3%-3%
Book Value per Share (Rs.) 344388.21434.7486.08545.1980.721,005.06712.66736.53757.19
Adjusted Net Profit 471546688672672800709674530514
Net Op. Cash Flow (Rs. Cr.) 1,0011,0231,6071,9867321,9271,6861,5741,2201,282
Debt to Cash Flow from Ops 3.013.012.332.037.162.773.543.784.965.03
Standalone financials take only the parent company into account while consolidated financials take into account financials of the parent company as well as of all its subsidiaries. In most companies consolidated financials should be used for analysis.
CESC Ltd. should be analysed on a Standalone basis
CAGR
CAGR Colour Code Guide
  9 yrs 5 yrs 3 yrs 1 yr
Net Sales 7.3%4.8%2.8%1.1%
Adjusted EPS 0.3%-5.2%-10.1%-3%
Book Value per Share 9.26.8-92.8
Share Price 10.8% 2.6% -14% -15.1%
Key Financial Parameter
Performance Ratio Colour Code Guide
 Mar'11Mar'12Mar'13Mar'14Mar'15Mar'16Mar'17Mar'18Mar'19Mar'20
Return on Equity (%) 8.759.43119.948.887.595.395.925.525.2
Operating Profit Margin (%) 27.4326.228.328.2526.3427.0224.1722.2418.8519.61
Net Profit Margin (%) 11.2911.6612.9712.2110.8511.779.828.656.846.56
Debt to Equity 0.70.630.690.660.720.410.450.630.620.64
Working Capital Days 192194207222229303372318269277
Cash Conversion Cycle 39547080775742383429
Entity Percentage Holding
Promoters 49.92%
Institutions 41.66%
Non-Institutions 8.41%
Pledged *0.000.000.000.000.000.000.000.000.000.00
* Pledged shares as % of Promoter's holding (%)

MoneyWorks4Me analysed the past 10-year performance of CESC Ltd and arrived at the following conclusion:

Past 10 year's financial track record indicates that CESC Ltd is a good quality company. However, for specific investment actions please connect with your investment advisor.

The 5-year analysis of CESC Ltd's performance infers:

CESC Ltd earnings have declined by -5.2%, whereas share price has appreciated 2.6% CAGR over the past five years, indicating the company's share price is likely overvalued. However, for specific investment actions please connect with your investment advisor.

We analysed the performance of CESC Ltd share prices over the last 10 years. Here is what we found out:

CESC Ltd share price has appreciated 5.7% annually over the past ten years.

CESC is India’s first fully integrated electrical utility company and it has been on an epic ride ever since 1899 in generating and distributing power in Kolkata and Howrah. The company has private participation in generation, transmission and distribution of electrical power. The company is the sole distributor of electricity within an area of 567sq km of Kolkata & Howrah which include domestic, industrial and commercial users. The company own

CESC is India’s first fully integrated electrical utility company and it has been on an epic ride ever since 1899 in generating and distributing power in Kolkata and Howrah. The company has private participation in generation, transmission and distribution of electrical power. The company is the sole distributor of electricity within an area of 567sq km of Kolkata & Howrah which include domestic, industrial and commercial users. The company own & operate three thermal power plants. The company own & operate the Transmission & Distribution System through which it supplies electricity to consumers.

In diurnal course, the company has verged upon renewable sources. It has brought forth three projects in three different areas of renewable sources. These are Gujarat Solar, which is a solar plant in Gujarat’s Kutch, Hydro Power Venture (Papu Hydropower Projects Limited & Pachi Hydropower Projects) in Arunachal Pradesh and Wind Power Operation at Dangi in Rajasthan.

The company also installed two thermal power plants to meet the requirement of its electricity. These are Chandrapur Thermal Plant at Chandrapur, Maharastra and Haldia Thermal Plant at Haldia, West Bengal.

With its continuous effort to accomplish the requirement of its consumers and make them easily avail all its services from their premises, it has employed value added online services. By online services, work can be done from consumer’s premises and they don’t have to visit offices for any work.

Business area of the company

The company is engaged in electricity distribution with embedded generation facility, across 567 square kilometres of its licensed area in Kolkata, Howrah, Hooghly, North and South 24 Parganas in West Bengal. CESC supplies safe, cost-effective and reliable electricity to millions of customers. The Company, through its subsidiaries and an associate, also has a portfolio of independent power generation projects and distribution ventures in other parts of the country.

Awards and recognition

Generation

2015

  • 14th Annual Greentech Safety Award 2015
  • 16th National Awards for Excellence in Energy Management 2015” organised by Confederation of Indian Industry, Hyderabad
  • “IPPAI Power Award 2015” organised by Independent Power Producer Association of India
  • All India Runner up Shield as “Best Thermal Power Generator (Cheapest producing with efficiency)”
  • Asia Regional Plant Operational Excellence Award for the period 2012-14, by M/S Nevigant of USA & EEI (Edison Electric Institute of USA)

2016

  • FAME Excellence Award 2016 in Environment Protection
  • 15th Annual Greentech Safety Award 2016
  • ICC Environment Excellence Award 2016

2017

  • Rashtra Vibhushan Award 2016-17
  • Asian Power Awards 2017

2018

  • Apex India Occupation Health & Safety Gold Award 2018
  • Environmental Excellence Award 2018 from Mission Energy Foundation 
  • 19th National Award for Excellence in Energy Management 2018 organized by Confederation of Indian Industry (CII)
  • 2nd Annual Exceed Gold Award 2018
  • 18th Annual Greentech Environment

2019

  • IPPAI Power Awards 2019

Distribution

2015

  • IUKAN (India Utility Knowledge And Networking) Forum in the Power Distribution Sector 
  • 9th ENERTIA Awards 2015
  • 3rd Innovation with Impact Awards for Discoms, 2015 organised by Indian Chamber of Commerce
  • Frost & Sulivan Best Practices Award 2015

2016

  • ICC Award 2016 ; 1st Runner-up under the category - Quality of Service Award

2017

  • ICC Award 2017; 1st Runner-up under the category - Efficient Distribution Operation Award
  • ICC Award 2017; 1st Runner-up under the category - Quality of Service Award
  • 11th ENERTIA Awards 2017
  • 6th CII National Excellence Practice Competition on “Customer Engagement & Satisfaction Practices”

2018

  • ICC 6th Innovation Award 2018; Overall Winner - under the category Innovation with Impact
  • ICC 6th Innovation Award 2018; Winner - under the category Quality of Service
  • ICC 6th Innovation Award 2018; Winner - under the category Efficient Distribution Operation
  • 12th ENERTIA AWARDS 2018
  • “CBIP Award for Best Performing Power Distribution Utility” 

2019

  • IPPAI Power Awards 2019
  • ICC 7th Innovation with Impact Awards 2019
  • Project Evaluation & Recognition Program 2019 (PERP)
  • Assocham India Energy Excellence Awards 2019
Puchho Befikar
SEBI Registered: Investment Adviser - INA000013323

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