ScoreWhy is CESC Ltd ?
1
Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.94 times
- Poor long term growth as Operating profit has grown by an annual rate 0.16% of over the last 5 years
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 4.94 times
- The company has been able to generate a Return on Capital Employed (avg) of 6.48% signifying low profitability per unit of total capital (equity and debt)
2
Poor long term growth as Operating profit has grown by an annual rate 0.16% of over the last 5 years
3
Flat results in Mar 26
- ROCE(HY) Lowest at 10.16%
- NET SALES(Q) At Rs 4,096.00 cr has Fallen at -10.7% (vs previous 4Q average)
- DEBT-EQUITY RATIO(HY) Highest at 1.73 times
4
Stock is technically in a Mildly Bullish range
- Multiple factors for the stock are Bullish like MACD, Bollinger Band and KST
5
With ROCE of 7.8, it has a Very Attractive valuation with a 1.4 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 4.00%, its profits have risen by 12.4% ; the PEG ratio of the company is 1.2
- At the current price, the company has a high dividend yield of 3.5
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to CESC should be less than 10%
- Overall Portfolio exposure to Power should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is CESC for you?
Medium Risk, Medium Return
Absolute
Risk Adjusted
Volatility
CESC
4.09%
0.14
28.43%
Sensex
-5.16%
-0.39
13.26%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
10.49%
EBIT Growth (5y)
0.16%
EBIT to Interest (avg)
1.29
Debt to EBITDA (avg)
6.09
Net Debt to Equity (avg)
1.28
Sales to Capital Employed (avg)
0.56
Tax Ratio
23.64%
Dividend Payout Ratio
43.79%
Pledged Shares
0
Institutional Holding
37.85%
ROCE (avg)
6.81%
ROE (avg)
12.22%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
15
Industry P/E
24
Price to Book Value
1.80
EV to EBIT
17.36
EV to EBITDA
11.18
EV to Capital Employed
1.35
EV to Sales
2.07
PEG Ratio
1.18
Dividend Yield
3.53%
ROCE (Latest)
7.78%
ROE (Latest)
12.28%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Mildly Bearish
Dow Theory
No Trend
Mildly Bullish
OBV
Mildly Bearish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 5,572.00 cr
DEBTORS TURNOVER RATIO(HY)
Highest at 7.69 times
PBT LESS OI(Q)
Highest at Rs 557.00 cr.
PAT(Q)
Highest at Rs 439.00 cr.
EPS(Q)
Highest at Rs 3.30
-6What is not working for the Company
ROCE(HY)
Lowest at 10.16%
NET SALES(Q)
At Rs 4,096.00 cr has Fallen at -10.7% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Highest at 1.73 times
PBDIT(Q)
Lowest at Rs 743.00 cr.
Loading Valuation Snapshot...
Here's what is working for CESC
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 557.00 cr has Grown at 47.2% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 378.50 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Profit Before Tax less Other Income (PBT) - Quarterly
Highest at Rs 557.00 cr.
in the last five quartersMOJO Watch
Near term PBT trend is positive
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
Highest at Rs 439.00 cr.
in the last five quartersMOJO Watch
Near term PAT trend is positive
PAT (Rs Cr)
Earnings per Share (EPS) - Quarterly
Highest at Rs 3.30
in the last five quartersMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (Rs)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 5,572.00 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debtors Turnover Ratio- Half Yearly
Highest at 7.69 times
in the last five half yearly periodsMOJO Watch
Company has been able to settle its Debtors faster
Debtors Turnover Ratio
Here's what is not working for CESC
Net Sales - Quarterly
At Rs 4,096.00 cr has Fallen at -10.7% (vs previous 4Q average)
over average Net Sales of the previous four quarters of Rs 4,587.75 CrMOJO Watch
Near term sales trend is very negative
Net Sales (Rs Cr)
Operating Profit (PBDIT) - Quarterly
Lowest at Rs 743.00 cr.
in the last five quartersMOJO Watch
Near term Operating Profit trend is negative
Operating Profit (Rs Cr)
Debt-Equity Ratio - Half Yearly
Highest at 1.73 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
