CESC shares see sharp swings as brokerage keeps buy tag

Shares of power company CESC saw high volatility and heavy trading volume on Thursday, even though the stock has dropped nearly twenty-eight percent over the last six months.

Financial Results

For the quarter ending in September, CESC reported a net profit of four hundred thirty-eight crore rupees, compared to four hundred forty-eight crore rupees during the same period last year. Total consolidated revenue reached five thousand six07 crore rupees, helped by good performance at Noida power. The company's earnings before interest, taxes, depreciation, and amortization stayed flat at eleven thousand four hundred crore rupees.

Renewable Energy Plans

CESC is working toward its goal of reaching ten gigawatts of renewable energy capacity. The firm signed a deal to buy a one point five gigawatt peak operational portfolio during the quarter. It has also secured transmission connectivity for four point eight gigawatts and acquired eight thousand eight hundred acres of land for solar projects, while planning to grow its solar manufacturing business.

Stock Target

Brokerage firm ICICI Direct kept a buy rating on the stock with a target price of one hundred seventy-six rupees per share, though it previously held a target of two hundred twenty rupees. At two-twenty pm on Thursday, the stock traded down zero point fifty-seven percent at one hundred thirty point forty rupees on the BSE, with a market value of seventeen thousand two hundred seventy-eight point eighty-one crore rupees after hitting a high of one hundred thirty-two point forty rupees on volume that jumped over two times.

Context

Power utility companies in India are increasingly shifting focus toward renewable energy sources like solar and wind power to meet long-term government targets and sustainability goals. Brokerage recommendations often look at these strategic green energy expansions rather than just short-term quarterly profit numbers when setting long-term stock targets.