CESC has target of Rs 400: Hemang Jani

CESC has target of Rs 400 for next 12 months, says Hemang Jani, Sr Vice President, Sharekhan.

Jani told CNBC-TV18, "CESC is basically a power generating and distributing company based in Kolkata and is doing pretty well in terms of adding new cash flows to the overall operation and there is going to be steady growth because of the expansion of the capacity. When we look at the valuations we feel that it is available at 30-40% discount to the book value, also when you compare it with similar companies doing similar business."
He further added, "One of the reasons why its quoting at a discount is that the retail business where it has made a substantial investment was a drag on the overall balance sheet and now there are indications that there is some improvement in the retail business and if we have FDI into retailing being passed, which is being talked about, then this could provide some sort of trigger and re-rating for the stock. We have set a target of about Rs 400 over the next 12 months."