2 Power Stocks To Pay Dividend This Week, Buy, Add For Upto 40% Gains, Says Top Broking Firms

Two leading brokerage firms BoB Capital Markets and HDFC Securities has placed "Buy" and "Add" call on CESC Ltd and Torrent Power Ltd. These two stocks are midcap Power Sector stocks. The stocks have recently declared Interim/Special dividends for the FY23.

CESC - 450% Interim Dividend

According to the regulatory filing by the company on February 14, 2023, "Declared an interim dividend @INR4.50/- 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 24 February, 2023, being the Record date to ascertain the eligibility of members to receive the said interim dividend."

 

CESC - Buy for a Target Price of Rs 108/share

CESC's generation and distribution assets in Kolkata remain a cash cow for the company, producing strong cash flows and high ROE. A steady performance at Dhariwal due to the new PPA should continue to broaden earnings visibility and cash generation. This apart, CESC's dividend yield is high at 6%, and we find current valuations attractive at 0.8x FY25E P/BV. We thus maintain BUY with an unchanged SOTP-based TP of Rs 108 for 44% upside potential. Turnaround in DF circles, however, remains a key monitorable.

 

CESC - Stock Outlook & Potential Upside

With the given target price, BoB Capital sees a potential upside of up to 40% from its current market price. The stock is currently trading at Rs 77.45/share on NSE. Its 52 week low is Rs 68/share and 52 week high is Rs 88/share, respectively.

The stock in the last 1 week has given 4.17% positive return, 4.88% in 1 month, and 7.13% in the past 3 months, respectively. In 3 years it has fallen 3.07%, and 21.06% in 5 years, respectively. However, it gave 10.92% positive return in 3 years.

 

Torrent Power - 90% Interim Dividend and 130% Special Dividend

According to the exchange filing by the company on February 14, 2023, "Interim Dividend for FY 2022-23 of ₹ 22 per equity share (including ₹ 13 per equity share as a special dividend) on 48,06,16,784 equity shares of ₹ 10/- each. The said dividend will be remitted on or after March 09, 2023 to the Equity Shareholders of the Company, whose names appear on the Register of Members of the Company and Register of Beneficial Owners maintained by the Depositories as on the Record Date i.e. Wednesday, February 22, 2023 fixed for the purpose."

 

Torrent Power - Add for a Target Price of Rs 545/share

HDFC Securities said, "We have largely maintained our earnings estimates for FY23E/24E/25E. Further, the company has applied for a grant of parallel distribution license in the areas of Thane, Palghar, Pune and Nagpur. We maintain our ADD rating with a revised TP of INR545 vs INR552 earlier."

 

Torrent Power - Stock Outlook & Potential Upside

HDFC Securities sees 6% upside in the share price with the given target price of Rs 545/share. The stock is currently trading at Rs 514.65/share. Its 52 week low is Rs 415.25/share and 52 week high is Rs 610/share, respectively.

The stock in 1 week gained 12.59%, and in 1 month gained 11.95%, respectively. In 1 year it gained 7.4%. It gained 63.99% in 3 years and 96.45% in 5 years, respectively.

 

Disclaimer

The stocks have been picked from the brokerage reports. Greynium Information Technologies, the Author, and the respective Brokerage house are not liable for any losses caused as a result of decisions based on the article. Goodreturns.in advises users to consult with certified experts before making any investment decision.