Firstcall Research`s research report on CESC“CESC limited is the flagship company of the R. P. Sanjiv Goenka Group. Registered in 1897, the Company is a fully integrated power utility engaged in the generation and distribution of electricity across 567 square kilometers of licensed area in Kolkata and Howrah, West Bengal. It supplies safe, cost-effective and reliable electricity to over 2.8 million customers. CESC has received the “Top Infrastructure Company” award under the category Power Distribution at the ‘Dun & Bradstreet Infra Awards 2013’. Apart from spearheading the Group’s interest in the power sector, the Company, through its subsidiaries, is also active in the organized retail, BPO and infrastructure sectors as a part of its strategy for diversification and long-term growth. All PF (Pulverised Fuel) stations of CESC are ISO 9001:2008 certified in respect of Quality Management Systems.” “At the current market price of Rs. 756.25, the stock P/E ratio is at 13.05 x FY15E and 11.74 x FY16E respectively. Earning per share (EPS) of the company for the earnings for FY15E and FY16E is seen at Rs.57.96 and Rs.64.40 respectively. Net Sales and PAT of the company are expected to grow at a CAGR of 12% and 10% over 2013 to 2016E respectively. On the basis of EV/EBITDA, the stock trades at 7.29 x for FY15E and 6.68 x for FY16E. Price to Book Value of the stock is expected to be at 1.40 x and 1.25 x respectively for FY15E and FY16E. We recommend ‘BUY’ in this particular scrip with a target price of Rs.832.00 for Medium to Long term investment,” says Firstcall Research report.
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