Buy CESC; target of Rs 204: Prabhudas Lilladher

Prabhudas Lilladher is bullish on CESC has recommended buy rating on the stock with a target price of Rs 204 in its research report dated February 08, 2026.

Broker Research

February 09, 2026 / 12:45 IST

Buy

Prabhudas Lilladher's research report on CESC

PAT increased 8% YoY in 3QFY26 and 11% YoY in 9MFY26, putting the company on track for double-digit earnings growth in FY26, a sharp improvement over the low single-digit PAT CAGR delivered over the past 3–5 years. The recovery is led by stronger performance at the Chandrapur plant and a sustained reduction in losses at Malegaon. On the operating front, Malegaon’s T&D losses improved to 35% versus 37% YoY (40% QoQ), while Q3FY26 generation declined 4% YoY at Haldia and rose 6% YoY at Chandrapur. Regulatory income in the Kolkata distribution business moderated to Rs 2.8 bn in 9MFY26 from Rs 10 bn YoY, which is positive for cash flows. CESC aims to expand renewable capacity to 1.2 GW by FY27E and 3.2 GW by FY29E, with PPAs already tied up for 0.7 GW of the FY27E target.

Outlook

Valuations remain attractive at 1.3x FY28E BV, at a discount to peers; we have a BUY with an SoTP-based target price of Rs 204 and an implied dividend yield of ~4%.

For all recommendations report, click here