Power Sector Stock Declares 450% Dividend, HDFC Securities Sees 40% Return, Buy

Leading mid cap power sector stock, CESC Ltd declared 450% interim dividend and fixed February 24, 2023 as the record date. HDFC Securities is upbeat on the stock and recommended buy call with a target price of Rs 108 apiece. Current market price of the stock is Rs 77.05 apiece. If you buy CESC Ltd now, you can get potential return of 40%. Check details below:

1. CESC Ltd Announces Interim Dividend, Fixes Record Date

According to the BSE filing of the company, "Declared an interim dividend @INR 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."

2. CESC Ltd Stock Performance & Return

The current market price of the stock is Rs 77.05 apiece with an intraday fall of 0.52%. The stock's 52-week high is Rs 88.00 apiece and 52-week low is Rs 68.00 apiece, respectively.

The company has a market capitalisation of Rs 9,626.31 crore. The stock gave a return of 5% in last 1-month, 4% in last 3-months, declined 2% in last 1-year, and rallied 9% in last 3-years.

3. Valuation

According to HDFC Securities, "CESC's consolidated PAT in Q3FY23 remained largely flat at INR3.4bn due to lower profit across the Haldia project (under-recovery of O&M and fuel cost) and higher losses across the distribution franchisee (DF) segment. We have maintained our earnings estimates for FY23/24 and retain our BUY rating on CESC at a SoTPbased TP of INR108. Our positive stance on CESC is also based on the grounds that the company continues to trade at an attractive valuation of 6.6xFY25P/E and 0.7xFY25 P/BV."

4. About CESC Ltd

CESC is India's first fully integrated electrical utility company ever since 1899, generating and distributing power in Kolkata and Howrah. It has a private participation in generation, transmission, and distribution of electrical power.

It is the sole distributor of electricity within an area of 567sq km of Kolkata, Howrah and adjoining areas and serve 3.4 million consumers which include domestic, industrial, and commercial users, according to its official website. 

Disclaimer

The stock has been picked from the brokerage report of HDFC Securities. 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 check with certified experts before taking any investment decision.