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Last Updated : Nov 19, 2019 11:36 AM IST | Source: Moneycontrol.com

Buy CESC target of Rs 905: Sharekhan

Sharekhan is bullish on CESC has recommended buy rating on the stock with a target price of Rs 905 in its research report dated November 15, 2019.

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Sharekhan's research report on CESC


Muted Q2FY2020 standalone performance with marginal rise of 1.5% y-o-y in PAT to Rs. 275 crore. Strong consolidated earnings growth of 13% y-o-y to Rs. 366 crore, led by Noida distribution business (132% y-o-y increase in PAT to Rs. 65 crore) and sharp reduction in losses at Dhariwal to Rs. 25 crore (vs. loss of Rs. 63 crore in Q2FY2019). Dhariwal Infrastructure has tied up 287 MW under long-term PPA for unit-2 and signed a long-term PPA for supply of 170 MW from November 1, 2019.


Outlook


We maintain our Buy rating on CESC with an unchanged SoTP-based PT of Rs. 905, as likely turnaround of loss-making subsidiaries would improve earnings outlook and valuation at 8.6x its FY2021E EPS and 0.9x its FY2021E book value seems attractive.


For all recommendations report, click here


Disclaimer: The views and investment tips expressed by investment experts/broking houses/rating agencies on moneycontrol.com are their own, and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.



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First Published on Nov 19, 2019 11:36 am
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