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Investing.com - Kotak has upgraded CESC Ltd (CESC:IN) from Sell to Reduce, while maintaining a price target of INR160.00.
The upgrade follows CESC’s annual analyst day where the company outlined ambitious plans to double its profit to Rs28 billion by FY2030, according to Kotak analyst Murtuza Arsiwalla.
CESC’s growth strategy centers on increased contributions from existing distribution businesses and new investments in renewable generation projects, requiring a total capital expenditure of Rs330 billion over the period.
The planned investments include Rs230 billion for the renewable business, Rs60 billion for license distribution businesses, and Rs30 billion for a 3 GW cell and module facility.
CESC intends to fund these initiatives through revised tariffs in Kolkata that will improve cash generation, along with higher profitability at Chandrapur due to a new power sale agreement.
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