Overall Fundamental outlook

Business Operations:

Sector: Utilities
Industry: 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:

Revenue projections for CESC
Revenue projections for CESC

CESC is projected to see lower revenues than in the previous year, a trend that usually concerns investors. Declining revenues often harm a company's profitability, leading investors to exercise caution as they weigh the potential risks of continued financial downturns.

Financial Ratios:

currentRatio 0.983000
forwardPE 13.049218
debtToEquity 142.660000
earningsGrowth -0.070000
revenueGrowth 0.145000
grossMargins 0.352330
operatingMargins 0.143410
trailingEps 10.320000
forwardEps 15.100000

CESC's Forward PE is positioned well, reflecting a favorable balance between stock price and earnings. The stock isn't overpriced, offering room for growth and making it a potentially rewarding investment as its value has room to rise further.
CESC's elevated debt-to-equity ratio highlights its heavy reliance on debt. This high leverage increases the company's exposure to financial risk, making it more vulnerable to market fluctuations and economic downturns.
CESC's low earnings and revenue growth suggest that its profits could shrink. This points to a potential downturn in the company's financial outlook and may indicate challenges in maintaining profitability.
CESC Limited's negative gross and operating margins suggest the company is not generating profit from either its production process or day-to-day operations. This could signal cost overruns or difficulties in maintaining revenue levels.
CESC's forward EPS is higher than its trailing EPS, suggesting the company is expected to improve its profitability this financial year. This reflects growing confidence in CESC's earnings potential, with forecasts indicating better financial performance than in the prior year.

Price projections:

Price projections for CESC
Price projections for CESC

Throughout its recent performance, CESC's price has been consistently close to the lower range of projected values. This suggests that the company may face challenges in achieving higher valuations in the eyes of investors.

Recommendation changes over time:

Recommendations trend for CESC
Recommendations trend for CESC


Analysts are favoring CESC with a buy bias, highlighting the stock's potential as a solid investment. This recommendation might drive more investors to consider CESC as a secure and profitable option for their money, contributing to a broader positive sentiment in the market.