CESC Stock Soars 75% on Bullish Renewable Energy Bets

CESC Ltd. is poised for growth, with Elara Securities maintaining a 'Buy' rating and a price target of ₹228, signaling a potential 75% increase in share value. The brokerage highlights four key strengths: stable earnings from regulated operations in Kolkata and Haldia, incremental earnings from its Rajasthan distribution franchise, a strong financial position, and planned investments.

The company is strategically focusing on expanding its renewable energy capacity, with plans to invest in 3 GW of assets. Furthermore, CESC intends to establish a green hydrogen production facility capable of producing 10,500 tonnes annually. These renewable energy projects are expected to drive a significant re-rating of the stock.

Elara Securities has also revised its earnings per share estimates upwards for fiscal years 2027, 2028, and 2029. This adjustment reflects the anticipated contribution from the upcoming renewable energy initiatives. The company's Q2 results showed a 6.5% year-on-year increase in net sales to ₹5,607 crore, though EBITDA saw a slight decline.