CESC Ltd. (Calcutta Electric Supply Corporation) is a leading player in the Indian power sector, engaged in the generation and distribution of electricity. As of October 9, 2024, the CESC share price is ₹190, reflecting a modest increase of 0.29% from the previous trading session. The stock opened at ₹191.10 and has seen a trading volume of over 690,540 shares so far today.
CESC Share Price in Today’s Market
In today’s trading session, the CESC share price reached a high of ₹191.20 and a low of ₹189.35. The current market capitalization stands at approximately ₹25,298 crore, indicating its significant presence in the energy sector.
CESC Financial Overview
CESC has an enterprise value of ₹33,592.37 crore and approximately 132.56 crore shares outstanding. The company’s P/E ratio is reported at 31.68, while its P/B ratio stands at 2.51. Recent financial reports indicate a profit growth decline of -6.68% alongside a sales growth rate of 7.94%. The company has cash reserves of ₹1,133.81 crore and total debt amounting to ₹9,474.06 crore. With a book value (TTM) of ₹76.04, CESC demonstrates a solid foundation despite facing challenges in profitability. The promoter holding stands at 52.11%, reflecting confidence in the company’s long-term prospects.
CESC Share Pros & Cons
Pros:
- Stable Sales Growth: A sales growth rate of 7.94% indicates steady demand for its services.
- Market Position: As a prominent player in the power sector, CESC benefits from a well-established brand and customer base.
- Dividend Yield: A dividend yield of 2.36% provides income opportunities for investors.
Cons:
- Profit Decline: A profit growth decline of -6.68% raises concerns regarding operational efficiency and financial health.
- High Debt Levels: With debt amounting to ₹9,474.06 crore, the company faces financial strain that could impact future growth.
- Market Volatility: A beta of 1.56 indicates that the stock is more volatile than the broader market, which can pose risks for conservative investors.
Indiahood Recommendation on CESC Share: Buy or Sell?
Considering the current market conditions and the fundamentals surrounding CESC Ltd., it is advisable to hold your position for now while monitoring market trends closely. Investors should wait for clearer signals before making new investments.
Conclusion
In summary, while the recent increase in CESC’s share price may raise some optimism among investors, significant challenges related to profit performance and high debt levels must be addressed before considering new investments. Investors are encouraged to stay informed about upcoming developments in the energy sector to make informed decisions.
Disclaimer
This article is for informational purposes only and should not be considered as financial advice. Always conduct your own research or consult with a financial advisor before making investment decisions.
