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CESC

NSEI:CESC
Snowflake Description

Very undervalued 6 star dividend payer.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CESC
NSEI
₹50B
Market Cap
  1. Home
  2. IN
  3. Utilities
Company description

CESC Limited, an integrated electrical utility company, engages in the generation, transmission, and distribution of electricity to approximately 3.3 million domestic, industrial, and commercial users in the area of 567 square kilometers (km) of Kolkata and Howrah, West Bengal in India. The last earnings update was 49 days ago. More info.


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  • CESC has significant price volatility in the past 3 months.
CESC Share Price and Events
7 Day Returns
1.1%
NSEI:CESC
4%
IN Electric Utilities
8.9%
IN Market
1 Year Returns
-43.8%
NSEI:CESC
-23.5%
IN Electric Utilities
-30.6%
IN Market
CESC Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
CESC (CESC) 1.1% -36.9% -45.3% -43.8% -52.4% -33.3%
IN Electric Utilities 4% -17% -24.8% -23.5% -20% -12.3%
IN Market 8.9% -24.8% -29.4% -30.6% -21.5% -10.4%
1 Year Return vs Industry and Market
  • CESC underperformed the Electric Utilities industry which returned -23.5% over the past year.
  • CESC underperformed the Market in India which returned -30.6% over the past year.
Price Volatility
CESC
Industry
5yr Volatility vs Market
Related Companies

CESC Value

 Is CESC undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of CESC to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for CESC.

NSEI:CESC Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 9 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 12.8%
Perpetual Growth Rate 10-Year IN Government Bond Rate 6.5%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NSEI:CESC
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year IN Govt Bond Rate 6.5%
Equity Risk Premium S&P Global 7.9%
Electric Utilities Unlevered Beta Simply Wall St/ S&P Global 0.25
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.254 (1 + (1- 35%) (237.78%))
0.763
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 6.48% + (0.8 * 7.85%)
12.76%

Discounted Cash Flow Calculation for NSEI:CESC using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for CESC is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NSEI:CESC DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (INR, Millions) Source Present Value
Discounted (@ 12.76%)
2020 22,126.25 Analyst x4 19,622.43
2021 19,158.00 Analyst x6 15,067.46
2022 20,156.83 Analyst x6 14,059.09
2023 21,470.38 Est @ 6.52% 13,280.65
2024 22,867.16 Est @ 6.51% 12,544.02
2025 24,353.05 Est @ 6.5% 11,847.40
2026 25,934.19 Est @ 6.49% 11,188.89
2027 27,617.00 Est @ 6.49% 10,566.62
2028 29,408.28 Est @ 6.49% 9,978.70
2029 31,315.21 Est @ 6.48% 9,423.33
Present value of next 10 years cash flows ₹127,578.00
NSEI:CESC DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= ₹31,315.21 × (1 + 6.48%) ÷ (12.76% – 6.48%)
₹530,962.31
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= ₹530,962.31 ÷ (1 + 12.76%)10
₹159,776.54
NSEI:CESC Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= ₹127,578.00 + ₹159,776.54
₹287,354.54
Equity Value per Share
(INR)
= Total value / Shares Outstanding
= ₹287,354.54 / 132.56
₹2167.78
NSEI:CESC Discount to Share Price
Calculation Result
Value per share (INR) From above. ₹2,167.78
Current discount Discount to share price of ₹408.55
= -1 x (₹408.55 - ₹2,167.78) / ₹2,167.78
81.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price CESC is available for.
Intrinsic value
>50%
Share price is ₹408.55 vs Future cash flow value of ₹2167.78
Current Discount Checks
For CESC to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • CESC's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • CESC's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for CESC's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are CESC's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NSEI:CESC PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in INR ₹96.16
NSEI:CESC Share Price ** NSEI (2020-03-31) in INR ₹408.55
India Electric Utilities Industry PE Ratio Median Figure of 7 Publicly-Listed Electric Utilities Companies 8.94x
India Market PE Ratio Median Figure of 2,613 Publicly-Listed Companies 9.25x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of CESC.

NSEI:CESC PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NSEI:CESC Share Price ÷ EPS (both in INR)

= 408.55 ÷ 96.16

4.25x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CESC is good value based on earnings compared to the IN Electric Utilities industry average.
  • CESC is good value based on earnings compared to the India market.
Price based on expected Growth
Does CESC's expected growth come at a high price?
Raw Data
NSEI:CESC PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 4.25x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts
9.9%per year
India Electric Utilities Industry PEG Ratio Median Figure of 5 Publicly-Listed Electric Utilities Companies 1x
India Market PEG Ratio Median Figure of 400 Publicly-Listed Companies 0.79x

*Line of best fit is calculated by linear regression .

NSEI:CESC PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 4.25x ÷ 9.9%

0.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CESC is good value based on expected growth next year.
Price based on value of assets
What value do investors place on CESC's assets?
Raw Data
NSEI:CESC PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in INR ₹709.37
NSEI:CESC Share Price * NSEI (2020-03-31) in INR ₹408.55
India Electric Utilities Industry PB Ratio Median Figure of 9 Publicly-Listed Electric Utilities Companies 0.64x
India Market PB Ratio Median Figure of 3,612 Publicly-Listed Companies 0.62x
NSEI:CESC PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NSEI:CESC Share Price ÷ Book Value per Share (both in INR)

= 408.55 ÷ 709.37

0.58x

* Primary Listing of CESC.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • CESC is good value based on assets compared to the IN Electric Utilities industry average.
X
Value checks
We assess CESC's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Electric Utilities industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Electric Utilities industry average (and greater than 0)? (1 check)
  5. CESC has a total score of 6/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

CESC Future Performance

 How is CESC expected to perform in the next 1 to 3 years based on estimates from 9 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
9.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is CESC expected to grow at an attractive rate?
  • CESC's earnings growth is expected to exceed the low risk savings rate of 6.5%.
Growth vs Market Checks
  • CESC's earnings growth is positive but not above the India market average.
  • CESC's revenue growth is positive but not above the India market average.
Annual Growth Rates Comparison
Raw Data
NSEI:CESC Future Growth Rates Data Sources
Data Point Source Value (per year)
NSEI:CESC Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 9 Analysts 9.9%
NSEI:CESC Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 9 Analysts 4.6%
India Electric Utilities Industry Earnings Growth Rate Market Cap Weighted Average 11%
India Electric Utilities Industry Revenue Growth Rate Market Cap Weighted Average 6.5%
India Market Earnings Growth Rate Market Cap Weighted Average 19.6%
India Market Revenue Growth Rate Market Cap Weighted Average 8.9%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NSEI:CESC Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
All numbers in INR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NSEI:CESC Future Estimates Data
Date (Data in INR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 122,093 29,284 15,049 6
2021-03-31 114,816 28,898 13,331 7
2020-03-31
2020-03-31 111,513 31,454 12,248 7
NSEI:CESC Past Financials Data
Date (Data in INR Millions) Revenue Cash Flow Net Income *
2019-12-31 108,891 12,740
2019-09-30 109,601 25,059 12,450
2019-06-30 109,061 12,040
2019-03-31 106,641 22,939 11,840
2018-03-31 102,749 24,686 8,276
2017-03-31 83,634 26,552 5,354

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • CESC's earnings are expected to grow by 9.9% yearly, however this is not considered high growth (20% yearly).
  • CESC's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NSEI:CESC Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below

All data from CESC Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:CESC Future Estimates Data
Date (Data in INR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 112.24 120.10 100.90 8.00
2021-03-31 96.42 108.20 72.10 10.00
2020-03-31
2020-03-31 92.16 95.60 84.40 9.00
NSEI:CESC Past Financials Data
Date (Data in INR Millions) EPS *
2019-12-31 96.16
2019-09-30 93.88
2019-06-30 90.84
2019-03-31 89.32
2018-03-31 62.43
2017-03-31 40.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • CESC is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess CESC's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the India market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the India market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
CESC has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

CESC Past Performance

  How has CESC performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare CESC's growth in the last year to its industry (Electric Utilities).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • CESC has delivered over 20% year on year earnings growth in the past 5 years.
  • CESC's 1-year earnings growth is less than its 5-year average (16.2% vs 25.4%)
  • CESC's earnings growth has exceeded the IN Electric Utilities industry average in the past year (16.2% vs 12.8%).
Earnings and Revenue History
CESC's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from CESC Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NSEI:CESC Past Revenue, Cash Flow and Net Income Data
Date (Data in INR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 108,891.40 12,739.80 10,871.00
2019-09-30 109,601.40 12,449.80 11,041.00
2019-06-30 109,061.40 12,039.80 10,961.00
2019-03-31 106,641.40 11,839.80 10,671.00
2018-03-31 102,748.60 8,275.70 9,994.50
2017-03-31 83,633.60 5,353.80 8,727.70
2016-03-31 121,241.90 5,984.80 32,853.70
2015-03-31 110,666.30 1,985.10 30,831.40
2014-03-31 101,108.50 4,916.40 35,154.70

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • CESC has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • CESC used its assets more efficiently than the IN Electric Utilities industry average last year based on Return on Assets.
  • CESC has improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess CESC's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Electric Utilities industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
CESC has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

CESC Health

 How is CESC's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up CESC's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • CESC's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • CESC's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of CESC's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from CESC Company Filings, last reported 3 months ago.

NSEI:CESC Past Debt and Equity Data
Date (Data in INR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 94,930.00 119,820.00 21,460.00
2019-09-30 94,930.00 119,260.00 21,460.00
2019-06-30 90,559.00 144,788.20 14,280.00
2019-03-31 90,559.00 144,721.20 14,280.00
2018-03-31 84,895.60 145,777.50 15,878.40
2017-03-31 118,327.40 156,390.20 23,016.80
2016-03-31 116,957.10 149,094.40 17,910.20
2015-03-31 70,294.40 142,365.60 16,453.00
2014-03-31 65,429.40 119,330.20 12,422.10
  • CESC's level of debt (125.6%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (197.9% vs 125.6% today).
  • Debt is well covered by operating cash flow (21%, greater than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.6x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess CESC's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. CESC has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

CESC Dividends

 What is CESC's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
4.9%
Current annual income from CESC dividends. Estimated to be 4.88% next year.
If you bought ₹2,000 of CESC shares you are expected to receive ₹98 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • CESC's pays a higher dividend yield than the bottom 25% of dividend payers in India (0.95%).
  • CESC's dividend is above the markets top 25% of dividend payers in India (4.16%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NSEI:CESC Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 9 Analyst Estimates (S&P Global) See Below
India Electric Utilities Industry Average Dividend Yield Market Cap Weighted Average of 7 Stocks 5.2%
India Market Average Dividend Yield Market Cap Weighted Average of 1419 Stocks 1.9%
India Minimum Threshold Dividend Yield 10th Percentile 0.5%
India Bottom 25% Dividend Yield 25th Percentile 0.9%
India Top 25% Dividend Yield 75th Percentile 4.2%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NSEI:CESC Future Dividends Estimate Data
Date (Data in ₹) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 20.45 6.00
2021-03-31 19.58 8.00
2020-03-31
2020-03-31 18.64 8.00
NSEI:CESC Past Annualized Dividends Data
Date (Data in ₹) Dividend per share (annual) Avg. Yield (%)
2020-02-11 20.000 3.633
2019-11-14 20.000 2.712
2019-02-05 17.500 2.356
2018-02-28 12.000 1.399
2017-02-15 10.000 1.049
2016-03-11 10.000 1.679
2015-05-21 9.000 1.726
2014-10-31 8.000 1.265
2014-10-28 8.000 1.203
2014-07-02 8.000 1.136
2014-05-30 8.000 1.281
2013-06-04 7.000 1.789
2013-05-28 7.000 2.101
2012-07-03 5.000 1.649
2012-06-18 5.000 1.753
2011-06-24 4.000 1.488
2010-06-21 4.000 1.170

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been stable in the past 10 years.
  • Dividends per share have increased over the past 10 years.
Current Payout to shareholders
What portion of CESC's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (5.5x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (5.3x coverage).
X
Income/ dividend checks
We assess CESC's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.5%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can CESC afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. CESC has a total score of 6/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

CESC Management

 What is the CEO of CESC's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
  • CESC has no CEO, or we have no data on them.
Management Team Tenure

Average tenure and age of the CESC management team in years:

1.8
Average Tenure
70
Average Age
  • The average tenure for the CESC management team is less than 2 years, this suggests a new team.
Management Team

Debasish Banerjee

TITLE
MD of Distribution & Executive Director
COMPENSATION
₹54M
AGE
57
TENURE
1.8 yrs

Rajarshi Banerjee

TITLE
CFO & Executive Director
COMPENSATION
₹20M

Subhasis Mitra

TITLE
Compliance Officer
COMPENSATION
₹21M

S. Chatterjee

TITLE
Executive Director of Corporate Development
COMPENSATION
₹3M
AGE
75

Rabi Chowdhury

TITLE
MD of Generation & Executive Director
AGE
58
TENURE
1.8 yrs

D. Guha

TITLE
Executive Director of Program Implementation
COMPENSATION
₹3M
AGE
74

Sumantra Banerjee

TITLE
Advisor to the Chairman
COMPENSATION
₹4M
AGE
70
TENURE
6.7 yrs
Board of Directors Tenure

Average tenure and age of the CESC board of directors in years:

5.5
Average Tenure
61.5
Average Age
  • The tenure for the CESC board of directors is about average.
Board of Directors

Sanjiv Goenka

TITLE
Non-Executive Chairman
COMPENSATION
₹2M
AGE
58
TENURE
6.8 yrs

Shashwat Goenka

TITLE
Vice Chairman of the Board & Additional Director
AGE
29
TENURE
0.3 yrs

Debasish Banerjee

TITLE
MD of Distribution & Executive Director
COMPENSATION
₹54M
AGE
57
TENURE
1.8 yrs

Rabi Chowdhury

TITLE
MD of Generation & Executive Director
AGE
58
TENURE
1.8 yrs

Pinto Khaitan

TITLE
Non-Executive Non Independent Director
COMPENSATION
₹1,000K
AGE
78
TENURE
27.4 yrs

Chandra Dhanuka

TITLE
Independent Director
COMPENSATION
₹1M
AGE
65
TENURE
7.8 yrs

Rekha Sethi

TITLE
Independent Director
COMPENSATION
₹600K
AGE
56
TENURE
5.8 yrs

Kalaikuruchi Jairaj

TITLE
Independent Director
COMPENSATION
₹600K
AGE
67
TENURE
5.6 yrs

Pratip Chaudhuri

TITLE
Independent Director
COMPENSATION
₹500K
AGE
66
TENURE
5.4 yrs

Sunil Mitra

TITLE
Additional Independent Director
AGE
68
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (₹) Value (₹)
X
Management checks
We assess CESC's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. CESC has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

CESC News

Simply Wall St News

Investors Who Bought CESC (NSE:CESC) Shares A Year Ago Are Now Down 22%

View our latest analysis for CESC To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … Since we can't easily explain the share price movement based on these metrics, it might be worth considering how market sentiment has changed towards the stock. … When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return.

Simply Wall St -

Read This Before You Buy CESC Limited (NSE:CESC) Because Of Its P/E Ratio

See our latest analysis for CESC How Do I Calculate CESC's Price To Earnings Ratio? … The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for CESC: P/E of 8.41 = ₹750.85 ÷ ₹89.32 (Based on the trailing twelve months to March 2019.) Is A High Price-to-Earnings Ratio Good? … How Does CESC's Debt Impact Its P/E Ratio?

Simply Wall St -

Shareholders Are Loving CESC Limited's (NSE:CESC) 2.3% Yield

Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. … Dividend Growth Potential Dividend payments have been consistent over the past few years, but we should always check if earnings per share (EPS) are growing, as this will help maintain the purchasing power of the dividend. … We like that it has been delivering solid improvement in its earnings per share, and relatively consistent dividend payments.

Simply Wall St -

A Spotlight On CESC Limited's (NSE:CESC) Fundamentals

Compared to the rest of the electric utilities industry, CESC is also trading below its peers, relative to earnings generated. … NSEI:CESC Historical Dividend Yield, July 13th 2019 Next Steps: For CESC, I've compiled three key aspects you should further research: Future Outlook: What are well-informed industry analysts predicting for CESC’s future growth? … Take a look at our free research report of analyst consensus for CESC’s outlook.

Simply Wall St -

What CESC Limited's (NSE:CESC) ROE Can Tell Us

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for CESC: 13% = ₹12b ÷ ₹91b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining CESC's Debt And Its 13% Return On Equity It's worth noting the significant use of debt by CESC, leading to its debt to equity ratio of 1.60. … Companies that can achieve high returns on equity without too much debt are generally of good quality.

Simply Wall St -

Is CESC Limited (NSE:CESC) Creating Value For Shareholders?

And finally, we'll look at how its current liabilities are impacting its ROCE. … The formula for calculating the return on capital employed is: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for CESC: 0.08 = ₹22b ÷ (₹335b - ₹65b) (Based on the trailing twelve months to March 2019.) Therefore, CESC has an ROCE of 8.0%. … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Is CESC Limited (NSE:CESC) Trading At A 49% Discount?

In this article we are going to estimate the intrinsic value of CESC Limited (NSE:CESC) by taking the expected future cash flows and discounting them to today's value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF (₹, Millions) ₹18.28k ₹20.68k ₹18.81k ₹18.33k ₹18.63k ₹19.27k ₹20.17k ₹21.28k ₹22.59k ₹24.07k Growth Rate Estimate Source Analyst x3 Analyst x3 Analyst x4 Analyst x1 Est @ 1.64% Est @ 3.41% Est @ 4.66% Est @ 5.52% Est @ 6.13% Est @ 6.56% Present Value (₹, Millions) Discounted @ 14.43% ₹15.97k ₹15.80k ₹12.55k ₹10.69k ₹9.50k ₹8.58k ₹7.85k ₹7.24k ₹6.71k ₹6.25k Present Value of 10-year Cash Flow (PVCF)= ₹101.15b "Est" = FCF growth rate estimated by Simply Wall St The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = ₹24b × (1 + 7.6%) ÷ (14.4% – 7.6%) = ₹376b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = ₹₹376b ÷ ( 1 + 14.4%)10 = ₹97.73b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is ₹198.88b.

Simply Wall St -

Will CESC Limited's (NSE:CESC) Earnings Grow Over The Next Few Years?

Below, I've laid out key growth figures on how market analysts view CESC's earnings growth outlook over the next few years and whether the future looks even brighter than the past. … See our latest analysis for CESC Market analysts' consensus outlook for the upcoming year seems rather muted, with earnings expanding by a single digit 4.5%. … NSEI:CESC Past and Future Earnings, May 28th 2019 Even though it is helpful to understand the rate of growth each year relative to today’s level, it may be more insightful to evaluate the rate at which the company is growing every year, on average.

Simply Wall St -

Some CESC (NSE:CESC) Shareholders Are Down 36%

Unfortunately the CESC Limited (NSE:CESC) share price slid 36% over twelve months. … Since the fundamental metrics don't readily explain the share price drop, there might be an opportunity if the market has overreacted. … Its history of dividend payouts mean that CESC's TSR, which was a 35% drop over the last year, was not as bad as the share price return.

Simply Wall St -

What Type Of Shareholder Owns CESC Limited's (NSE:CESC)?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … Companies that have been privatized tend to have low insider ownership. … It has a market capitalization of ₹92b, which means it would generally expect to see some institutions on the share registry.

Simply Wall St -

CESC Company Info

Description

CESC Limited, an integrated electrical utility company, engages in the generation, transmission, and distribution of electricity to approximately 3.3 million domestic, industrial, and commercial users in the area of 567 square kilometers (km) of Kolkata and Howrah, West Bengal in India. It owns and operates three thermal power plants, including Budge Budge, Southern, and Titagarh generating stations generating 1125 megawatts (MW) of power; two thermal power plants with a capacity of power in Chandrapur, Maharashtra, and Haldia, West Bengal; and transmission and distribution systems that comprise 474 km circuit of transmission lines linking the company’s generating and receiving stations with 105 distribution stations, as well as 8,211 km circuit of HT lines, and 12,269 km circuit of LT lines. The company also owns and operates a solar plant in Gujarat’s Kutch generating 9MW of solar energy; hydro power venture in Arunachal Pradesh generating 146 MW energy; and wind power plant, a 24 MW project at Dangi in Rajasthan. The company was formerly known as The Calcutta Electric Supply Corporation (India) Limited and changed its name to CESC Limited in January 1987. CESC Limited was founded in 1897 and is headquartered in Kolkata, India.

Details
Name: CESC Limited
CESC
Exchange: NSEI
Founded: 1897
₹50,391,559,896
132,557,043
Website: http://www.cesc.co.in
Address: CESC Limited
CESC House,
Chowringhee Square,
Kolkata,
West Bengal, 700001,
India
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NSEI CESC Equity Shares National Stock Exchange of India IN INR 21. Mar 1994
BSE 500084 Equity Shares Mumbai Stock Exchange IN INR 21. Mar 1994
BDL CESC GDR-REPR 1 ORD INR10 REG S Bourse de Luxembourg LU USD 09. Aug 1994
BDL CES05 GDR-REPR 1 ORD INR10 REG'S' (TEMP) Bourse de Luxembourg LU USD 21. Apr 2006
Number of employees
Current staff
Staff numbers
0
CESC employees.
Industry
Electric Utilities
Utilities
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/03/31 12:58
End of day share price update: 2020/03/31 00:00
Last estimates confirmation: 2020/03/27
Last earnings filing: 2020/02/11
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/03/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.