CESC Shares Gain After Unit's Renewable Energy Push
Purvah Green Power has incorporated Ecofusion Power, Ecovantage Energy and Vitalgreen Power to tap the green energy business.
Shares of CESC Ltd. gained over 6% on Wednesday after its subsidiary incorporated three new companies to explore opportunities in the renewable power sector.
Over the last few days, the subsidiary Purvah Green Power Pvt. incorporated Ecofusion Power Pvt., Ecovantage Energy Pvt., and Vitalgreen Power Pvt. to tap the green energy business.
Purvah Green Power has investments in renewable energy generation of up to 3 gigawatts in a hybrid portfolio, according to an investor presentation.
CESC's applied inter-state transmission connectivity of 2,675 MW of renewables is expected to be granted by the third quarter of fiscal 2025. Moreover, 3,975 MW of wind and solar site pipelines are under evaluation for project development.
The RP-Sanjiv Goenka Group-promoted power producer's net profit rose 5.4% year-on-year to Rs 388 crore for the quarter ended June 2024, in line with street expectations.
Shares of CESC gained as much as 6% intraday to Rs 187.6 apiece. It was trading 5.38% higher at 11:40 a.m., compared to 0.08% advance in the benchmark NSE Nifty 50.
The stock has gained 140% in the last 12 months and 38% on a year-to-date basis. The total traded volume so far in the day stood at 3.2 times its 30-day average. The relative strength index was at 45.
Eleven out of 13 analysts tracking CESC has a 'buy' rating on the stock, while two have a 'sell' call, according to Bloomberg data. The average of 12-month analyst price targets implies a potential upside of 1.8%.
