{"id":287551,"date":"2019-08-17T06:46:27","date_gmt":"2019-08-17T06:46:27","guid":{"rendered":"http:\/\/infralive.com\/web\/?p=287551"},"modified":"2019-08-17T06:46:27","modified_gmt":"2019-08-17T06:46:27","slug":"analyst-corner-maintain-buy-on-cesc-with-revised-tp-of-rs-880","status":"publish","type":"post","link":"https:\/\/infralive.com\/web\/analyst-corner-maintain-buy-on-cesc-with-revised-tp-of-rs-880\/","title":{"rendered":"Analyst corner: Maintain \u2018buy\u2019 on CESC with revised TP of Rs 880"},"content":{"rendered":"<p>CESC\u2018s Q1FY20 standalone operating performance broadly met ours and consensus estimates. Key highlights, standalone power sales rose 7% YoY to 3.0BU; Rajasthan\u2019s distribu-tion franchise (DF) operations were below expectation as aggregate losses remained flattish at Rs 530 mn with Kota continuing to face some challenges; and Dhariwal losses maintained at Rs 240 mn. Tie-up of open capacity for Unit-1 at Dhariwal remains a key monitorable. CESC, in our view, is well positioned to capitalise on the emerging distribution franchise opportunity while generating a healthy FCF (INR10bn plus) from its regulated business. Maintain \u2018BUY\u2019 with revised SOTP-based target price of Rs 880 (Rs 840 earlier) as we roll forward the valuation to Dec-2020.<\/p>\n<p>Standalone generation in Q1FY20 was flattish at 1,718MU (1,709MU in Q1FY19) with Budge-Budge and Southern stations recording 96.2% and 48.0% PLF, respectively. Overall sales inched up 8% YoY to 3.0BU with higher proportion of power purchase units. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>CESC\u2018s Q1FY20 standalone operating performance broadly met ours and consensus estimates. Key highlights, standalone power sales rose 7% YoY to 3.0BU; Rajasthan\u2019s distribu-tion franchise (DF) operations were below expectation as aggregate losses remained flattish at Rs 530 mn with Kota continuing to face some challenges; and Dhariwal losses maintained at Rs 240 mn. Tie-up of open capacity for Unit-1 at Dhariwal remains a key monitorable. CESC, in our view, is well positioned to capitalise on the emerging distribution franchise opportunity while generating a healthy FCF (INR10bn plus) from its regulated business. Maintain \u2018BUY\u2019 with revised SOTP-based target price of Rs [&hellip;]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,240,138],"tags":[],"class_list":["post-287551","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/287551","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=287551"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/287551\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=287551"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=287551"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=287551"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}