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Fundamentals for CESC Limited
Business Operations:
Sector: UtilitiesIndustry: Utilities - Regulated Electric
CESC Limited, an integrated electrical utility company, engages in the generation and distribution of electricity in India. It owns and operates two thermal power plants, including Budge Budge and Southern generating stations generating 1125 megawatts (MW) of power; a thermal power project with a capacity of 600 MW in Haldia, West Bengal; two thermal power projects with a capacity of 600 MW in Chandrapur, Maharashtra and 40 MW atmospheric fluidised bed combustion power plant in Asansol, West Bengal; and distributes power in Uttar Pradesh. The company also owns and operates solar power projects with a capacity of 18 MW data center in Ramanathapuram, Tamil Nadu. It serves domestic, industrial, commercial, and other users. CESC Limited was founded in 1899 and is headquartered in Kolkata, India.
Revenue projections:
CESC is projected to experience a revenue decline compared to last year, a development that often leads to investor caution. The drop could negatively impact the company's bottom line, as lower revenues typically signal reduced profitability, prompting more conservative investment strategies.
Financial Ratios:
| currentRatio | 0.00000 |
|---|---|
| forwardPE | 12.72231 |
| debtToEquity | 141.10700 |
| earningsGrowth | 0.08000 |
| revenueGrowth | 0.12500 |
| grossMargins | 0.38080 |
| operatingMargins | 0.12809 |
| trailingEps | 11.13000 |
| forwardEps | 12.21712 |
CESC's Forward PE is at a healthy level, indicating that the stock price is well-positioned relative to its earnings. With the stock not being overvalued, there remains room for future growth, suggesting a balanced opportunity for investors seeking potential upside.
CESC's elevated debt-to-equity ratio reflects substantial leverage, meaning the company relies heavily on borrowed funds. This could increase financial risk, particularly in times of economic uncertainty or if the company's profitability declines.
CESC Limited's forward EPS exceeding its trailing EPS reflects expectations of increased profitability for the current year. This suggests that the company is projected to achieve higher earnings than in the previous financial year, signaling positive growth and improved financial health.
Price projections:
The price of CESC has consistently remained close to the lower end of price projections. This trend may reflect uncertainty in the market regarding the company's ability to deliver on growth expectations.
Recommendation changes over time:
Analysts have shown a buy bias for CESC Limited, marking it as a favorable investment option. This could inspire investors to see CESC Limited as a strong place to park their money, given the positive outlook and growth potential associated with the stock in recent evaluations.
DISCLAIMER: We provide information and our musings based on events, but nothing on this site can be considered professional advice of any kind.
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