Buy CESC; target of Rs 860: Sharekhan

Sharekhan's research report on CESC

We introduce FY2021E numbers earnings and expect the company to report revenue and earnings CAGR of 8.0% and 11.5% during FY2019-21E respectively. Chandrapur plant volume sold increases by 25.6% y-o-y, as PLF improved to 61.4% during FY19. Haldia plant volume growth remains muted as PLF remains stable. Subsidiary revenue increases by 15.4% y-o-y, whereas PAT increases by 2.6x, as two of the loss making subsidiaries reduced losses sharply.

Outlook

We maintain our Buy rating on the stock with revised PT of Rs 860.

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