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CESC Ltd

NSE: CESC BSE: 500084

₹162.88

(0.55%)

Sun, 19 Jul 2026, 03:54 am

MTF 5xInvest in CESC Ltd with 5x Leverage Buy with MTF

Market Cap (in Cr)21726.1

PE Ratio14.06

Dividend3.66

Utilities

Electric Utilities

24.5K

CESC Analysis

dividend

Pros

Dividends per share have increased over the past 10 years.
Dividends paid are well covered by earnings (5.5x coverage).
Dividends after 3 years are expected to be well covered by earnings (5.2x coverage).
Dividends per share have been stable in the past 10 years.
CESC's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.76%).
CESC's dividend is above the markets top 25% of dividend payers in India (3.08%).

Cons

future

Pros

CESC's earnings growth is expected to exceed the low risk savings rate of 7.2%.
Performance (ROE) is expected to be above the current IN Electric Utilities industry average.

Cons

Cash flow for CESC is expected to increase but not above the 50% threshold in 2 years time.
CESC's earnings are expected to grow by 9.5% yearly, however this is not considered high growth (20% yearly).
CESC's earnings growth is positive but not above the India market average.
CESC's earnings are expected to decrease over the next year.
CESC's net income is expected to increase but not above the 50% threshold in 2 years time.
CESC is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
A decline in CESC's performance (ROE) is expected over the next 3 years.
CESC's revenue is expected to increase but not above the 50% threshold in 2 years time.
CESC's revenue is expected to grow by 5.1% yearly, however this is not considered high growth (20% yearly).
CESC's revenue growth is positive but not above the India market average.

health

Pros

CESC is profitable, therefore cash runway is not a concern.
CESC is profitable, therefore cash runway is not a concern.
Debt is well covered by operating cash flow (21%, greater than 20% of total debt).
The level of debt compared to net worth has been reduced over the past 5 years (197.9% vs 125.6% today).

Cons

CESC's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
Debt is not covered by short term assets, assets are 0.5x debt.
CESC's long term commitments exceed its cash and other short term assets.
Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
CESC's level of debt (125.6%) compared to net worth is high (greater than 40%).
High level of physical assets or inventory.

management

Pros

The tenure for the CESC board of directors is about average.
The tenure for the CESC management team is about average.

Cons

misc

Pros

Cons

CESC has significant price volatility in the past 3 months.

past

Pros

CESC has delivered over 20% year on year earnings growth in the past 5 years.
CESC used its assets more efficiently than the IN Electric Utilities industry average last year based on Return on Assets.
CESC has improved its use of capital last year versus 3 years ago (Return on Capital Employed).

Cons

CESC's 1-year earnings growth is less than its 5-year average (16.2% vs 25.4%)
CESC has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
CESC's earnings growth has not exceeded the IN Electric Utilities industry average in the past year (16.2% vs 16.2%).

value

Pros

CESC's share price is below the future cash flow value, and at a moderate discount (> 20%).
CESC's share price is below the future cash flow value, and at a substantial discount (> 40%).
CESC is good value based on expected growth next year.
CESC is good value based on earnings compared to the IN Electric Utilities industry average.
CESC is good value based on earnings compared to the India market.
BSE:500084 is up 4.6% along with the Electric Utilities industry (5.5%) over the past month.

Cons

CESC is overvalued based on assets compared to the IN Electric Utilities industry average.
500084 underperformed the Electric Utilities industry which returned -13.9% over the past year.
500084 underperformed the Market in India which returned -14.5% over the past year.
BSE:500084 is up 4.6% underperforming the market in India which returned 8% over the past month.