CESC Q4 Results Review - Tariff Delayed Is Not Tariff Denied; Jumping Onto The RE Wagon: ICICI Securities

ICICI Securities Report

Tariff hike in the largest distribution area of CESC Ltd. has been delayed owing to the delay in approval. However, we expect the tariff hike to come through as past expenses are allowed in new orders in due course of time.

As a result, we expect the profit from distribution area (contributes 60% to consol. Profit) to improve after all past expenses are recognised. Also, the cashflow may improve as regulator allows new tariffs.

Additionally, the company is looking to build its renewables arm. It is targeting 3 giga watt capacity in medium term. It is in the process of building a team and is looking to start bidding for power purchase agreements in next four-six months. It is the cheapest stock in our coverage universe.

We resume coverage on CESC with Buy rating and target price of Rs 180 per share.

Click on the attachment to read the full report:

DISCLAIMER

This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.

Users have no license to copy, modify, or distribute the content without permission of the Original Owner.