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.
The West Bengal Electricity Regulatory Commission has started issuing tariff orders, which bodes well for CESC Ltd. Kolkata discom’s tariff approval.
With the anticipated issue of the order, and approval of capex incurred in the past three years and of future capex as well, we expect ambiguity in the company’s earnings and valuation to diminish and the stock to re-rate.
Despite its higher profits, return on equity and free cash flow yield, the company currently trades at 52%/70% discount to its private sector peers Torrent Power Ltd./JSW Energy Ltd.’s FY23E price-to-earning.
Of the three main concerns – the pending tariff order, franchise distribution profitability, and growth concerns – two are about to be addressed.
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.