India's CESC rises; CLSA raises PT after quarterly profit jump

CESC

07/05/2026 06:32

** Shares of power supplier CESC CESC.NS up 0.9% at 186.6 rupees

** CLSA maintains "Outperform" rating and raises PT on CESC from 195 rupees to 204 rupees after Q4 net profit jumps 17.7% to 4.39 billion rupees ($46.28 million)

** Brokerage says turnaround in distribution businesses and start of renewable independent power producers (RE IPP) from FY27 are next catalysts to sustain double-digit growth over FY26-FY29

** Notes stock catalyst includes the scale-up of its improving unregulated and regulated businesses and its entry to RE IPP segment

** Says sourcing further renewable power should reduce costs, helping it to improve recoveries without tariff hikes

** YTD, stock up 11.6%

($1 = 94.8475 Indian rupees)

 (Reporting by Mridula Kumar in Bengaluru)

 ((Mridula.Kumar@thomsonreuters.com;))