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Last Updated on: 05 October, 2024
Author: Getaka|Social: Getaka Financial Services X (Earlier Twitter) Profile Getaka Financial Services LinkedIn Logo
Stock Ticker - BSE: 500084 | NSE: CESC

CESC Ltd: Intrinsic Value and Fundamental Analysis

Share Price and Basic Stock Data

Last Updated: October 5, 2024, 10:28 pm

Market Cap 25,756 Cr.
Current Price 194
High / Low213/82.3
Stock P/E18.3
Book Value 86.4
Dividend Yield2.32 %
ROCE11.6 %
ROE12.1 %
Face Value 1.00
PEG Ratio8.46

Stock P/E, Current Price, and Intrinsic Value Over Time

View Share Price Target for CESC Ltd

Competitors of CESC Ltd

Stock NameMarket CapCurrent PriceHigh / LowStock P/EBook ValueDividend YieldROCEROEFace Value
GMR Power & Urban Infra Ltd 10,457 Cr. 146169/29.7 48.30.00 %11.4 %% 5.00
Gita Renewable Energy Ltd 67.3 Cr. 164310/106210 32.80.00 %2.71 %1.91 % 10.0
SJVN Ltd 49,779 Cr. 127170/63.453.8 35.81.42 %4.99 %5.90 % 10.0
Rattanindia Power Ltd 8,705 Cr. 16.221.1/6.60 8.130.00 %8.39 %% 10.0
PTC India Ltd 5,960 Cr. 201255/12611.6 1743.87 %9.64 %9.57 % 10.0
Industry Average79,406.00 Cr300.7171.0790.850.69%8.97%11.23%8.14

All Competitor Stocks of CESC Ltd

Quarterly Result

MonthDec 2020Mar 2021Jun 2021Sep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023
Sales2,7842,8903,2133,4942,8263,0114,1023,9133,1293,1024,3104,3523,244
Expenses1,9492,0502,4512,5802,2812,3153,4523,4232,6332,5893,5863,7062,898
Operating Profit835840762914545696650490496513724646346
OPM %30%29%24%26%19%23%16%13%16%17%17%15%11%
Other Income14021313066408409191421426547323423617
Interest305290280278273298265274289289308305296
Depreciation218218219222221223217221219221300303303
Profit before tax452545393480459584359416414550439461364
Tax %25%21%29%29%26%24%17%23%19%19%16%21%17%
Net Profit338429280340340445297319336445368363301
EPS in Rs2.473.192.042.532.483.202.162.302.413.272.622.632.12

Last Updated: Unknown

Quarterly Chart

Profit & Loss - Annual Report

Last Updated: Unknown

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023TTM
Sales5,8927,55710,11111,06712,1248,36310,27510,66412,15911,63212,54414,24615,008
Expenses4,8496,2448,4139,0888,8395,5107,2357,7388,9028,3389,50911,97212,779
Operating Profit1,0431,3131,6981,9793,2852,8543,0402,9263,2573,2933,0352,2742,229
OPM %18%17%17%18%27%34%30%27%27%28%24%16%15%
Other Income1012101771531164754541,1638426651,0131,5841,910
Interest4105016451,0451,5931,4821,4111,4321,4841,3401,2481,2411,198
Depreciation3403654715897667157517648488678858781,127
Profit before tax3946577584981,0421,1311,3311,8931,7681,7521,9151,7391,814
Tax %38%27%24%40%30%28%27%37%26%22%27%20%
Net Profit2444815732997298109751,1981,3091,3631,4041,3971,477
EPS in Rs1.973.683.941.504.515.216.888.939.5610.0410.2510.1310.64
Dividend Payout %26%19%20%60%22%19%18%20%21%45%44%45%

Profit & Loss Yearly Chart

YoY Net Profit Growth

Year2012-20132013-20142014-20152015-20162016-20172017-20182018-20192019-20202020-20212021-20222022-2023
YoY Net Profit Growth (%)97.13%19.13%-47.82%143.81%11.11%20.37%22.87%9.27%4.13%3.01%-0.50%
Change in YoY Net Profit Growth (%)0.00%-78.00%-66.95%191.63%-132.70%9.26%2.50%-13.61%-5.14%-1.12%-3.51%

CESC Ltd has shown an inconsistent trend in YoY Net Profit Growth (%) in the last 11 years from 2012-2013 to 2022-2023.

Growth

Compounded Sales Growth
10 Years:4%
5 Years:7%
3 Years:10%
TTM:10%
Compounded Profit Growth
10 Years:11%
5 Years:3%
3 Years:1%
TTM:0%
Stock Price CAGR
10 Years:13%
5 Years:22%
3 Years:29%
1 Year:121%
Return on Equity
10 Years:11%
5 Years:13%
3 Years:13%
Last Year:12%

Last Updated: Unknown

Balance Sheet

Last Updated: Unknown

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Equity Capital126126133133133133133133133133133133
Reserves5,0185,5095,89610,47010,4898,2878,8419,2789,74010,26310,77711,312
Borrowings9,66111,91614,20214,87715,59914,57814,47913,99114,27714,96114,26314,544
Other Liabilities6,4867,3967,62910,94711,2489,98810,01712,05511,71212,13612,53911,179
Total Liabilities21,29024,94827,86036,42837,47032,98633,47035,45735,86237,49337,71237,168
Fixed Assets10,91314,51120,86926,50026,62623,85423,64924,73924,19723,21622,82622,131
CWIP5,1105,312410505392217161168134102140175
Investments2121066701,0021,1101,1741,1851803084607757
Other Assets5,0565,0195,9128,4209,3437,7428,47410,37111,22213,71614,66914,806
Total Assets21,29024,94827,86036,42837,47032,98633,47035,45735,86237,49337,71237,168

Reserves and Borrowings Chart

Cash Flow

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Cash from Operating Activity 1,8142,2518892,4802,6552,4692,2943,4082,8062,4991,9782,351
Cash from Investing Activity -3,764-3,180-2,381-1,220-1,493-1,606-686-466-1,489-575-545-564
Cash from Financing Activity 1,9248221,331-1,181-760-1,485-1,737-2,219-1,739-611-2,457-1,642
Net Cash Flow-27-107-16180402-623-130723-4231,313-1,024146

Free Cash Flow

MonthMar 2012Mar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023
Free Cash Flow1.00-8.00-10.00-13.00-11.00-13.00-11.00-12.00-10.00-11.00-11.00-12.00

Free Cash Flow = Income Generated from Operational Activities - Borrowings - Capital Work in Progress (CWIP)

Consistent positive free cash flow is crucial for businesses as it indicates their ability to generate cash from their core operations. It provides financial flexibility, allowing companies to invest in growth opportunities, pay dividends to shareholders, reduce debt, and weather economic downturns more effectively.

Free Cash Flow Chart

Financial Efficiency Indicators

MonthMar 2013Mar 2014Mar 2015Mar 2016Mar 2017Mar 2018Mar 2019Mar 2020Mar 2021Mar 2022Mar 2023Mar 2024
Debtor Days785556436855605573615654
Inventory Days
Days Payable
Cash Conversion Cycle785556436855605573615654
Working Capital Days-6-53-34-32-19-24-27-4734262715
ROCE %8%8%8%12%10%11%14%14%13%13%11%12%

Financial Efficiency Indicators Chart

Share Holding Pattern

MonthSep 2021Dec 2021Mar 2022Jun 2022Sep 2022Dec 2022Mar 2023Jun 2023Sep 2023Dec 2023Mar 2024Jun 2024
Promoters52.11%52.11%52.11%52.11%52.11%52.11%52.11%52.11%52.11%52.11%52.11%52.11%
FIIs12.95%13.47%13.80%13.92%13.27%12.71%12.18%12.20%13.14%11.95%12.91%13.56%
DIIs23.00%22.06%20.99%21.35%22.03%22.00%21.75%21.04%20.06%21.44%21.12%22.63%
Government0.01%0.01%0.01%0.01%0.02%0.01%0.01%0.01%0.01%0.01%0.01%0.01%
Public11.93%12.35%13.09%12.61%12.57%13.15%13.92%14.63%14.68%14.49%13.83%11.70%
No. of Shareholders1,76,1022,54,9412,96,4852,91,4532,87,9172,90,4953,07,7943,10,9873,12,8393,27,2123,63,7763,32,459

Shareholding Pattern Chart

No. of Shareholders

Mutual Fund Holdings

Fund NameNo of SharesAUM (%)Amount Invested (Cr)Previous Number of SharesPrevious DatePercentage Change
SBI Balanced Advantage Fund34,000,0001.77486.5421,853,4302024-10-0455.58%
HDFC Balanced Advantage Fund - Regular Plan22,002,5180.41314.8621,853,4302024-10-040.68%
SBI Contra Fund21,853,4301.33312.7221,853,4302024-10-040%
SBI Flexi Cap Fund20,279,4071.44290.221,853,4302024-10-04-7.2%
HDFC Dividend Yield Fund9,000,0002.82128.7921,853,4302024-10-04-58.82%
UTI Value Fund9,000,0001.52128.7921,853,4302024-10-04-58.82%
UTI Mid Cap Fund6,868,5920.9898.2921,853,4302024-10-04-68.57%
Aditya Birla Sun Life Flexi Cap Fund6,545,1900.4893.6621,853,4302024-10-04-70.05%
Nippon India Multi Cap Fund5,000,0000.2871.5521,853,4302024-10-04-77.12%
ICICI Prudential Value Discovery Fund4,897,8610.1870.0921,853,4302024-10-04-77.59%

ROCE Trend

EPS Trend

Key Financial Ratios

MonthMar 24Mar 23Mar 22Mar 21Mar 20
FaceValue1.001.001.0010.0010.00
Basic EPS (Rs.)10.3810.1310.25100.4098.24
Diluted EPS (Rs.)10.3810.1310.25100.4098.24
Cash EPS (Rs.)20.0317.0817.18167.35151.47
Book Value[Excl.RevalReserv]/Share (Rs.)90.1185.4981.30770.84729.11
Book Value[Incl.RevalReserv]/Share (Rs.)90.1185.4981.30770.84729.11
Revenue From Operations / Share (Rs.)114.98106.9494.16873.64826.80
PBDIT / Share (Rs.)31.0818.4523.96256.73230.85
PBIT / Share (Rs.)21.9311.8617.32191.68172.19
PBT / Share (Rs.)12.6513.0514.38131.48120.05
Net Profit / Share (Rs.)10.8810.4910.54102.3092.82
NP After MI And SOA / Share (Rs.)10.3510.0810.1999.9097.74
PBDIT Margin (%)27.0317.2525.4529.3827.92
PBIT Margin (%)19.0711.0918.3921.9420.82
PBT Margin (%)11.0012.2015.2715.0414.51
Net Profit Margin (%)9.469.8011.1911.7011.22
NP After MI And SOA Margin (%)8.999.4210.8211.4311.82
Return on Networth / Equity (%)12.0212.3013.0613.4813.52
Return on Capital Employeed (%)9.655.578.059.018.77
Return On Assets (%)3.703.563.623.713.78
Long Term Debt / Equity (X)0.941.061.201.311.18
Total Debt / Equity (X)1.251.471.601.461.43
Asset Turnover Ratio (%)0.400.240.220.220.25
Current Ratio (X)2.031.511.531.471.18
Quick Ratio (X)1.911.411.461.391.09
Inventory Turnover Ratio (X)11.340.000.000.000.00
Dividend Payout Ratio (NP) (%)0.0044.4243.9244.8120.36
Dividend Payout Ratio (CP) (%)0.0026.8626.5927.1412.72
Earning Retention Ratio (%)0.0055.5856.0855.1979.64
Cash Earning Retention Ratio (%)0.0073.1473.4172.8687.28
Interest Coverage Ratio (X)3.352.202.832.792.27
Interest Coverage Ratio (Post Tax) (X)2.171.111.591.771.42
Enterprise Value (Cr.)28338.2022823.2223895.5520901.2217550.45
EV / Net Operating Revenue (X)1.851.601.901.801.59
EV / EBITDA (X)6.859.297.486.115.71
MarketCap / Net Operating Revenue (X)1.060.620.800.670.49
Retention Ratios (%)0.0055.5756.0755.1879.63
Price / BV (X)1.410.810.970.800.56
Price / Net Operating Revenue (X)1.060.620.800.670.49
EarningsYield0.080.150.130.160.23

Profitability Ratios (%)

Liquidity Ratios

Liquidity Ratios (%)

Interest Coverage Ratios (%)

Valuation Ratios

Fair Value

Fair Value of CESC Ltd as of October 5, 2024 is: ₹195.75

Calculation basis:

  • Fair value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.

This formula allows us to gauge the fair value of the stock by analyzing its fundamental indicators.

As of October 5, 2024, CESC Ltd is Undervalued by 0.90% compared to the current share price ₹194.00

Intrinsic Value of CESC Ltd as of October 5, 2024 is: ₹199.99

Calculation basis:

  • Intrinsic value = P/E Ratio * (Return on Equity / 100) * Book Value * (1 + Dividend Yield / 100) * (1 + EPS CAGR for Last 5 Years)
  • P/E Ratio (Price-to-Earnings Ratio): Represents the price of the stock relative to its earnings per share. A higher P/E ratio indicates that investors are willing to pay a higher price for the stock.
  • Return on Equity (ROE): Measures a company's profitability relative to its shareholder equity. It showcases the company's ability to generate profits using the investment made by its shareholders, offering valuable insight into its operational efficiency and financial performance.
  • Book Value: Represents the net asset value of the company per share. It is calculated as the total assets minus intangible assets and liabilities, divided by the number of outstanding shares.
  • Dividend Yield: The ratio of the annual dividend per share to the current market price per share. It offers valuable insights into the profitability of an investment through dividends.
  • EPS CAGR (Compound Annual Growth Rate): Represents the geometric mean growth rate of earnings per share over the last 5 years. It provides insight into the historical growth trajectory of the company's earnings.

This formula allows us to gauge the intrinsic value of the stock by analyzing its fundamental indicators along with EPS growth.

As of October 5, 2024, CESC Ltd is Undervalued by 3.09% compared to the current share price ₹194.00

Last 5 Year EPS CAGR: 2.16%

*Investments are subject to market risks

Strength and Weakness

StrengthWeakness
  1. The stock has a low average Working Capital Days of -11.67, which is a positive sign.
  2. The company has shown consistent growth in sales (10.54 cr) and profit (178.15 cr) over the years.
  1. The stock has a low average ROCE of 11.17%, which may not be favorable.
  2. The stock has a high average Cash Conversion Cycle of 59.50, which may not be favorable.
  3. The company has higher borrowings (13,945.67) compared to reserves (8,823.33), which may suggest financial risk.

Stock Analysis

  • Considering all of the following key financial indicators, prospective investors are encouraged to conduct thorough research and seek professional guidance before considering any investment in CESC Ltd:
    1. Net Profit Margin: 9.46%
      • Net Profit Margin: This metric indicates the percentage of profit a company makes from its total revenue. A higher net profit margin is generally desirable as it reflects better profitability.
    2. ROCE: 9.65% (Industry Average ROCE: 8.97%)
      • ROCE (Return on Capital Employed): ROCE measures a company's profitability and the efficiency with which its capital is employed. A higher ROCE indicates efficient use of capital.
    3. ROE%: 12.02% (Industry Average ROE: 11.23%)
      • ROE (Return on Equity): ROE measures a company's profitability relative to shareholders' equity. A higher ROE indicates efficient use of shareholders' funds.
    4. Interest Coverage Ratio (Post Tax): 2.17
      • Interest Coverage Ratio: The interest coverage ratio measures a company's ability to cover its interest payments on outstanding debt. A ratio greater than 2 is generally considered healthy as it indicates the company can meet its interest obligations comfortably.
    5. Quick Ratio: 1.91
      • Quick Ratio: The quick ratio assesses a company's ability to cover its short-term liabilities with its most liquid assets. A ratio higher than 1 suggests the company can meet its short-term obligations without relying heavily on inventory.
    6. Stock P/E: 18.3 (Industry average Stock P/E: 71.07)
      • Stock P/E (Price-to-Earnings) Ratio: The P/E ratio compares a company's current share price to its earnings per share. A lower P/E ratio relative to industry peers or historical values may indicate that the stock is undervalued.
    7. Total Debt / Equity: 1.25
      • Total Debt / Equity: This ratio measures a company's financial leverage by comparing its total debt to its total equity. A lower ratio indicates lower financial risk and greater financial stability.
    The current analysis is available for review. It's important to conduct thorough research and consider consulting with financial professionals before making any investment decisions.
    Stock Rating:

About the Company - Qualitative Analysis

CESC Ltd. is a Public Limited Listed company incorporated on 28/03/1978 and has its registered office in the State of West Bengal, India. Company’s Corporate Identification Number(CIN) is L31901WB1978PLC031411 and registration number is 031411. Currently Company is involved in the business activities of Electric power generation by coal based thermal power plants. Company’s Total Operating Revenue is Rs. 7293.86 Cr. and Equity Capital is Rs. 133.22 Cr. for the Year ended 31/03/2022.
INDUSTRYADDRESSCONTACT
Power - Generation/DistributionCESC House, Kolkata West Bengal 700001secretarial@rpsg.in
https://www.cesc.co.in
Management
NamePosition Held
Dr. Sanjiv GoenkaChairman
Mr. Shashwat GoenkaVice Chairman
Mr. Brajesh SinghManaging Director
Mr. Vineet SikkaManaging Director
Mr. Pradip Kumar KaitanNon Exe.Non Ind.Director
Mr. Pratip ChaudhuriIndependent Director
Mr. Sunil MitraIndependent Director
Mr. Debanjan MandalIndependent Director
Mr. Arjun KumarIndependent Director
Ms. Kusum DadooIndependent Director

FAQ

What is the latest fair value of CESC Ltd?

The latest fair value of CESC Ltd is ₹195.75.

What is the Market Cap of CESC Ltd?

The Market Cap of CESC Ltd is 25,756 Cr..

What is the current Stock Price of CESC Ltd as on 05 October 2024?

The current stock price of CESC Ltd as on 05 October 2024 is ₹194.

What is the High / Low of CESC Ltd stocks in FY 2024?

In FY 2024, the High / Low of CESC Ltd stocks is 213/82.3.

What is the Stock P/E of CESC Ltd?

The Stock P/E of CESC Ltd is 18.3.

What is the Book Value of CESC Ltd?

The Book Value of CESC Ltd is 86.4.

What is the Dividend Yield of CESC Ltd?

The Dividend Yield of CESC Ltd is 2.32 %.

What is the ROCE of CESC Ltd?

The ROCE of CESC Ltd is 11.6 %.

What is the ROE of CESC Ltd?

The ROE of CESC Ltd is 12.1 %.

What is the Face Value of CESC Ltd?

The Face Value of CESC Ltd is 1.00.

About the Author

Author Avatar
Getaka

Getaka, CFA, a financial analyst with 15 years of experience in the industry. Getaka holds an MBA degree and the Chartered Financial Analyst designation, demonstrating his profound understanding of financial analysis and investment management. Throughout his career, he has conducted numerous financial analyses and due diligence processes for companies in the industry, and has a strong track record of identifying key trends and opportunities. He leverages his expertise to deliver a thorough financial analysis of a company, encompassing its financial performance, key ratios, future prospects, and risks. Getaka is committed to providing accurate, reliable, and trustworthy information to help readers make informed decisions about their finances and investments.

Disclaimer: This article is for informational purposes only and should not be construed as financial advice. The author is not a SEBI registered financial advisor and does not have any vested interest in CESC Ltd. Investors are advised to conduct their own due diligence and consult with a financial professional before making any investment decisions. The information provided in this article is based on publicly available data and the author's analysis, but it may not be comprehensive or up-to-date. The author and getaka.co.in are not responsible for any errors or omissions in the content. This article is not intended to promote any particular investment strategy or recommendation, and readers should consult with their own financial advisors before making any investment decisions. Data Source: NSE