450% Payout: Power Stock To Hit Ex-Date On Thursday, 1st Feb For Rs 4.50/Share; Buy?

At Wednesday's BSE closing session, CESC Ltd., a mid-cap company in the power industry, had a market valuation of Rs 18,975.54 Cr. The primary operation of the RP-Sanjiv Goenka Group is headquartered in Kolkata and is referred to as the Calcutta Electric Supply Corporation (CESC).

Since its founding in 1899, CESC has been India's first fully integrated electrical utility company, producing and distributing power in Howrah and Kolkata. The firm serves 3.4 million customers, commercial, and industrial customers and is the only distributor of power in an area covering 567 square kilometers that includes Kolkata, Howrah, and surrounding areas.

CESC Dividend

The Board of Directors "has declared an interim dividend @ Rs 4.50/-per equity share (i.e., 450%) on the paid-up equity share capital of the Company payable to those members whose names appear in the Register of Members of the Company, or, will appear as beneficial owners (as per particulars furnished by the Depositories viz., National Securities Depository Limited and Central Depository Services (India) Limited) at the close of the business on February 1, 2024, being the "Record Date" to ascertain the eligibility of members to receive the said interim dividend," said CESC in a stock exchange filing.

CESC Financials

On a consolidated basis, the company reported a net revenue of Rs 3301 Cr during the quarter ended 31st December 2023 compared to Rs 3224 Cr in the year-ago quarter, representing a growth of 2%. Its consolidated EBITDA reached Rs 963 Cr in Q3FY24 up by 5% from Rs 922 Cr in Q3FY23. The consolidated net profit of CESC reached Rs 301 Cr during the quarter under review which was Rs 336 Cr in the same quarter of the previous fiscal, a drop of 10% YoY.

CESC Share Price Target

CESC Limited is trading very close to its "All-Time High," with a current RSI value of 62 at the daily and 79 at the weekly time frame. Its current PE ratio is 13.09, which is nearly 70% lower than its sector's PE ratio. Additionally, this company has delivered a 2.10X dividend yield compared to its sector. Recently, the company announced an Rs. 4.50 dividend per share, and its current market price is just 142, which is approximately a 3.17% DY per share. Its total market cap is 18,439 as of the current date.

On the technical aspect, its price is in the high buying zone, and a pullback is expected as profit booking could take place. This should be considered as a Dip Buying opportunity. Mid-term and long-term investors can add more in the range of 128 to 135. Those who are holding can follow a stop loss at 120 and expect targets from 160 to 270. The holding period will be 4 weeks to 9 months for these targets," said VLA Ambala, a SEBI Registered Research Analyst, and Founder of Stock Market Today.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.