CESC may touch Rs 500, says SP Tulsian

SP Tulsian of sptulsian.com told CNBC-TV18, "Among power stocks, I am only keeping positive view on CESC for last couple of months because the book value is at Rs 540. Now the share is ruling sub Rs 500 and its expected EPS for FY14 is likely to be Rs 50. Now its present capacity of 1,300 Mega Watt (MW) and in Kolkata and Howrah, it is the generation, distribution and transmission company. It is adding the capacity of 2,200 MW in next couple of years and that will be a big booster."

"All its projects seem to be on track, its debt is also not very alarming and at one time it used to be the Tata Power. People used to have lot of comfort prior to Mundra ultra mega power project came in because that usef to be the blind call that if you want to go for a power generation company. That seems to be now happening with CESC, but apart from that it has been gradually moving and maybe a level of Rs 500 can be expected in next one month or so, but look for a level of about Rs 490 for the time being," he added.