On the back of healthy quarterly results, the shares of CESC soared over six per cent, to touch a new 52-week high to Rs 819.15 per share on the BSE intraday trade on Thursday. The stock in early morning trade had opened higher, however, trading at 1.7 per cent to Rs 782.60 at around 12:30 pm. 

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The company’s consolidated net profit grew over 13 per cent to Rs 429 crore in the March-ended quarter of the financial year 2020-2021, mainly due to higher revenues, it said in a filing to exchanges on Wednesday. CESC had consolidated net profit at Rs 378 crore in Q4 FY20. 

The company said in a statement that the subject to the approval of the company's shareholders, the company's board considered and approved a proposal for sub-division of existing 1 equity share of the nominal value of Rs 10 each to be sub-divided into 10 equity shares of a nominal value of Re 1 each. 

The company intends to improve the liquidity of its shares in the stock market by reducing the nominal value of the shares through the process of subdivision, CESC said on the rationale behind the stock split. 

Amid satisfactory results, a brokerage firm Sharekhan maintains a Buy rating on CESC with a price target of Rs 905 per share, it sees gradual re-rating led by the revival of subsidiaries and efficiencies from a consolidation of the power distribution business. 

FY23E P/BV of 0.9x is attractive and dividend yield at 6 per cent says the brokerage pointing out steady fourth-quarter results with 16 per cent year-on-year rise in consolidated profit after tax. 

The board also approved the convening of its 43rd annual general meeting of the company's members on August 18 this year through video conferencing or other audio-visual means.

(Authored by Vaibhav Bansode)