CESC...Offset ur electricity bill by Investing in this firm
CESC is a fully integrated power utility with its operation spanning the entire value chain: right from mining coal, generating power, transmission and distribution of power. Company serves 2.3 million customers within 567 square kilometers of Kolkata and Howrah, delivering safe, cost-effective and reliable energy to our consumers. It's part of RPG group which has firms like Ceat, KEC international & many more.
History
The Company was incorporated on 28th March 1978.
Calcutta Electricity Supply Corporation Ltd. (CESC).
In 1986, The Company secured during the year a contract for erection of their Lalmatia (Bihar) 220/132 KV substation.In Year 1992 The Company proposed to undertake the project for a high installed capacity of 1,500 MW to be completed in three states.
In 1995, A new Company Integrated Coal Mining Pvt. Ltd. was promoted by the Company to undertake the work of particularly power companies to be directly involved in mining .
In Year 2008 CESC Ltd has forayed into a memorandum of understanding with the Government of Bihar to establish a 2,000-MW power plant in the State's Bhagalpur district at an investment of Rs 10,000 crore.
Upcomming Projects
Location Capacity Type Commissioning
Budge Budge, West Bengal 250 MW Thermal 2009
Haldia Phase I, West Bengal 600 MW Thermal 2012
Chandrapur, Maharashtra 600 MW Thermal 2012
Dumka, Jharkahand 1000 MW Thermal 2013
Haldia Phase II, West Bengal 1400 MW Thermal 2013
Dhenkanal, Orissa 1000 MW Thermal 2013
Pirpainti, Bihar 2000 MW Thermal 2013
Haldia Phase II, West Bengal 1400 MW Thermal 2013
I strongly believe if one compares this firm to Areva, Reliance Power & Tata power Returns opportunity is quite high.
Key Drawbacks:
Rising price of Coal & Fuel.
Intensified competition by enterance of new players Like Adani power,Jindal power,Indiabulls power.
Govt plans to levy tax on Chinese Imported Power Equipements which will lower margins across Industry.
Why Consider Investing:
Why I'm investing is discounted valuations & trust in Management.
Invest for Target price of Rs 550 plus with 1year viewpoint.
Book Value of 232 as of Mar09.
P/E is 11 were for Areva TD, NTPC, Reliance Power & Adani is around 23plus.
RoCE based on recent qtr =8%.
Expansion projects well streamlined.
Net Profit Mgn:12.39%
Recently company revised it's billing Tariff by 48 paise which will lead to better Net Profits in future.
Disclaimer: Invest at your own risk & at your own pace. This script has been recommended by me to Family & friends with viewpoint that Next recession is just 5 to 6 months away & Basics will be back in demand.This script is ideal for conservative Investors...
History
The Company was incorporated on 28th March 1978.
Calcutta Electricity Supply Corporation Ltd. (CESC).
In 1986, The Company secured during the year a contract for erection of their Lalmatia (Bihar) 220/132 KV substation.In Year 1992 The Company proposed to undertake the project for a high installed capacity of 1,500 MW to be completed in three states.
In 1995, A new Company Integrated Coal Mining Pvt. Ltd. was promoted by the Company to undertake the work of particularly power companies to be directly involved in mining .
In Year 2008 CESC Ltd has forayed into a memorandum of understanding with the Government of Bihar to establish a 2,000-MW power plant in the State's Bhagalpur district at an investment of Rs 10,000 crore.
Upcomming Projects
Location Capacity Type Commissioning
Budge Budge, West Bengal 250 MW Thermal 2009
Haldia Phase I, West Bengal 600 MW Thermal 2012
Chandrapur, Maharashtra 600 MW Thermal 2012
Dumka, Jharkahand 1000 MW Thermal 2013
Haldia Phase II, West Bengal 1400 MW Thermal 2013
Dhenkanal, Orissa 1000 MW Thermal 2013
Pirpainti, Bihar 2000 MW Thermal 2013
Haldia Phase II, West Bengal 1400 MW Thermal 2013
I strongly believe if one compares this firm to Areva, Reliance Power & Tata power Returns opportunity is quite high.
Key Drawbacks:
Rising price of Coal & Fuel.
Intensified competition by enterance of new players Like Adani power,Jindal power,Indiabulls power.
Govt plans to levy tax on Chinese Imported Power Equipements which will lower margins across Industry.
Why Consider Investing:
Why I'm investing is discounted valuations & trust in Management.
Invest for Target price of Rs 550 plus with 1year viewpoint.
Book Value of 232 as of Mar09.
P/E is 11 were for Areva TD, NTPC, Reliance Power & Adani is around 23plus.
RoCE based on recent qtr =8%.
Expansion projects well streamlined.
Net Profit Mgn:12.39%
Recently company revised it's billing Tariff by 48 paise which will lead to better Net Profits in future.
Disclaimer: Invest at your own risk & at your own pace. This script has been recommended by me to Family & friends with viewpoint that Next recession is just 5 to 6 months away & Basics will be back in demand.This script is ideal for conservative Investors...
good to see you back in action. Some quick qusetions -
ReplyDeletetinplqte - tgt 125 - what time frame?
kesoram and srf - what is holding them and how long shall they remain in this range?
cesc and micro tech - are they at good entry points or should wait for the markets to come down?
budget - sell or hold before budget?
and finally - any new picks?
Hi Ankur,
ReplyDeleteTinplate & Kesoram has shown good results & therefore I continue to hold them.In my post I have said 1year.. But my way is to hold as long as there is positive news for sector & company has shown positive results. Within Cement sector I have concentrated more on Mangalam Cement & Birla Corp.CESC is script to buy. I have compare Areva T&D, Tata power, Reliance power & NTPC.
It is very nice.It helps the Electricity users and providers about the Electricity.If you want to more information visit the strom.
ReplyDelete