CESC Q1 Review - Standalone Miss On Higher-Than-Expected Expenses: Motilal Oswal
BQ Blue’s special research section collates quality and in-depth equity and economy research reports from across India’s top brokerages, asset managers and research agencies. These reports offer BloombergQuint’s subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
CESC Ltd.’s standalone Q1 results highlight a modest profitability improvement.
Volumes for standalone improved 23% YoY (on a low base), but standalone profit after tax was up just 3% YoY.
Consolidated profit after tax, on the other hand, rose 37% YoY on lower losses in its distribution franchise business.
Dhariwal has turned profitable and distribution franchises are showing signs of a turnaround.
CESC’s integrated business in Kolkata is high return on equity and generates strong cash flows.
Even as we factor in the tightening of norms at Haldia and standalone, the stock trades attractively at 7.3/6.8 times FY22/FY23 price/earning.
Click on the attachment to read the full report:
This report is authored by an external party. BloombergQuint does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of BloombergQuint.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.