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Buy CESC: target of Rs 851: ICICI Securities

ICICI Securities is bullish on CESC recommended buy rating on the stock with a target price of Rs 851 in its research report dated September 09, 2020.

September 10, 2020 / 03:22 PM IST
 
 
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ICICI Securities research report on CESC

CESC has reported better-than-expected earnings for its consolidated business in Q1FY21 despite being affected by the lockdown. Standalone/consolidated PAT came in at Rs13.4bn/Rs2bn (-38.2%/-13.4% YoY) mainly due to combined loss of Rs640mn at Rajasthan distribution franchises (PAT -37.7% YoY) and the recently started Malegaon DF. However, the loss was partly offset by good performance at Chandrapur (PAT Rs240mn vs loss of Rs240mn in Q1FY20). Lockdown affected not only the DF businesses, but also incentive income in the regulated business though DF losses were lower than expected.

Outlook

There was fixed-cost under recovery, which is expected to be addressed in the coming quarters. We maintain our BUY rating and target price of Rs851/share on CESC.

For all recommendations report, click here

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Broker Research
first published: Sep 10, 2020 03:22 pm

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