This Private Power Company Gives Dividend Yield Of 6.15%, P/E Just 11

The stock of CESC, India's first fully integrated electrical utility company generating and distributing power in Kolkata and Howrah is available at a good dividend yield. The stock price valuation has also been falling in the last few days, making valuations and dividend yields attractive.

Strong dividend yields

For the previous year ending March 2022, CESC declared an equity dividend of 450.00% amounting to Rs 4.5 per share. At the current share price of Rs 73.20 this results in a dividend yield of 6.15%. What is more interesting is that the company has a very consistent tract record of paying dividend over the years. The business has been performing well, though the stock has seen some fall in prices over the last few weeks.

How the shares have moved?

The stock of CESC was last seen trading at Rs 73.20 on the BSE. The shares of the company have fallen substantially from 52-week high of Rs 94 to the current levels. In fact, the stock of CESC is now very close to its 52-week low of Rs 68 that it hit on the BSE. The shares of the company are now available at a price to earnings ratio of 11 times trailing EPS, according to the BSE website. Please note that this is only information and not a recommendation to buy the stock of CESC.

About CESC

The company is a large player with 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. CESC owns & operate two thermal power plants in our licensed area generating 885 MW of power. These are Budge Budge Generating Station (750 MW) and Southern Generating Station (135 MW) within our licensed area.

Amongst others, the company has also commissioned Haldia Thermal plant, which is a 600 MW project at Haldia, West Bengal. The entire power from Haldia is utilised to meet the total power requirement of CESC. The power from Haldia propagates to the city through dedicated 400KV network.

The company also has a presence in the renewable fields with Solar Power Plants in Gujarat and Tamil Nadu, with a combined capacity of 27MW.

Disclaimer

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