CESC (CESC)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 2/3 · ROCE: 0/2 · Growth: 1/2 · Dividend: 1/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I approach CESC as a Graham-style value investor: price first, then business quality. At ₹167.83 and ₹22,247 Cr market cap, the P/E is 14.28 and P/B is 1.78 against book value of ₹94.47. That is not obviously expensive, but Graham’s number is ₹150.49, leaving a margin of safety of -5.09%—so the price is above my cautious intrinsic-value estimate. The utility earns ROE of 12.55% and ROCE of 11.23%, which are decent but not franchise-like. Sales growth is 5.60%, and the five-year revenue CAGR is 6.93%, so I see a slow grower, not a compounding machine. Profit growth of 17.80% is better, but the PEG ratio of 3.21 makes me question whether that pace is durable or already priced in. The Piotroski F-Score of 8/9 is a clear strength, suggesting improving fundamentals. Promoter holding of 52.11% aligns interests, and dividend yield of 3.73% pays me to wait. Yet the balance sheet needs watching: debt/equity is 1.64, free cash flow is ₹-431 Cr, and Altman Z-Score of 1.33 is weak. The latest quarter had sales of ₹4,005 Cr and net profit of ₹304 Cr, which supports earnings, but cash generation is the missing piece. EV/EBITDA of 298.24 is extreme and suggests either data distortion or a valuation disconnect. FairStock Score is 50/100, a mixed signal. CESC is a mixed proposition: steady utility earnings, reasonable dividend, but negative free cash flow and leverage mean I want a larger margin of safety before buying. I would call it a Slow Grower and monitor cash flow and debt reduction.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer