#CESCAnalysis

[quibblefrost]

CESC Limited: Key Updates, Technical Insights, and Investment Strategies

Date: January 10, 2025

Recent Developments

Renewable Energy Expansion: CESC has incorporated a wholly-owned subsidiary, Ecovantage Energy, through Purvah Green Power to explore renewable power opportunities. [Source]

Strategic Acquisition: Eminent Electricity Distribution, a CESC subsidiary, secured a ₹871 crore deal to acquire a 100% stake in an electricity distribution company in Chandigarh. [Source]

Financial Performance Highlights

In Q2 FY2024-25, CESC achieved:

Net Profit: ₹353 crore, a 1.4% YoY increase.

Revenue: ₹4,700 crore, marking 8% growth YoY.

EBITDA: ₹896 crore, with margins improving to 19% from 14.8%. [Source]

Technical Analysis

As of January 10, 2025, CESC's stock is trading at ₹182.

Resistance Levels: R1: ₹185, R2: ₹190

Support Levels: S1: ₹178, S2: ₹175

The stock is trading above its 50-day and 200-day moving averages, signaling a bullish trend.

Investment Strategies

Intraday: Buy near ₹178 with a target of ₹185 and a stop-loss at ₹175.

Short-Term: Aim for ₹190 while maintaining a stop-loss below ₹175.

Long-Term: Accumulate on dips for sustained growth, backed by CESC's renewable energy focus and strategic acquisitions.

Conclusion

CESC Limited's proactive strategies in renewable energy and electricity distribution, combined with strong financials, make it a compelling choice for traders and investors across all horizons.

Sources

Business Standard: Renewable Energy Expansion

Business Standard: Strategic Acquisition