Motilal Oswal is bullish on CESC recommended buy rating on the stock with a target price of Rs 793 in its research report dated June 29, 2020.
Motilal Oswal 's research report on CESC
CESC’s 4QFY20 results highlight the benefit of improved performance for its distribution franchisee (DF) and Dhariwal businesses with consol. PAT increasing 7% YoY. On the other hand, S/A PAT declined 19% YoY, leading to a miss on our estimates. - While the muted power demand environment could impact profitability in the near term, the longer-term story remains intact.
Performance at Dhariwal and DFs continue to improve. Despite factoring in the tightening of norms at Haldia and for the S/A, the stock trades attractively at 7x FY21E P/E. Maintain Buy with TP of INR793/share.
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