Our 2nd company in the Series of Which stock pays the highest dividend in india 2021 is CESC Ltd.
Here is the detail of dividend of CESC Ltd
| EX-DATE | DIVIDEND AMOUNT | DIVIDEND TYPE |
| Jan. 22, 2021 | 45.00 | INTERIM |
| Feb. 18, 2020 | 20.00 | INTERIM |
| Feb. 14, 2019 | 17.50 | INTERIM |
You can see company given dividend Rs. 45.00 in Jan. 22, 2021 .
This company is good for investing purpose or not ?
Let’s start with the Company profile
Company Profile :
CESC Limited is an integrated electrical utility and holding company. The Company is engaged in the generation and distribution of electricity across approximately 570 square kilometers of licensed area in Kolkata and Howrah, West Bengal.
Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹10,366cr. We can check more fundamental details below in depth:
Company Fundamental Detail :
PE Ratio: 7.79
Sector PE Ratio: 20.11
PE Ratio of this company is low than Sector’s PE. So it’s a Good PE than the peers of this company.
PB Ratio : 1.01
Sector PB Ratio : 2.43
PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.
Dividend Yield : 5.78%
Sector Dividend Yield : 2.21%
Dividend Yield of this company is high than Sector. Dividend of this is Good than the peers of this company.
ROE: 13.48%
ROCE: 9.01%
ROE (Return on equity) and ROCE (Return on capital equity) is Above Average
According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:
Company Financial Detail
| Year | Revenue(cr.) | Profit(cr.) |
| 2021 | 12,297.19 | 1,330.93 |
| 2020 | 13,008.17 | 1,267.04 |
| 2019 | 11,830.22 | 1,183.98 |
| 2018 | 10,729.08 | 912.60 |
You can see the company growth clearly in the above table, in 2019 Net profit was 1,183.98 Cr. only and in 2020, It increased to 1,267.04 Cr. and in 2021, it is increased to 1,330.93 Cr.
We should check now liabilities of company also in the below table
Total Current & Non Current Liabilities
| 2021 | 2020 | 2019 | 2018 |
| 25,592.44 | 25,680.85 | 24,413.76 | 24,496.70 |
Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 25,592.44 Cr. debt.
Let’s check the Free Cash flow of the company
Free Cash flow
| 2021 | 2020 | 2019 | 2018 |
| 2,135.71 | 2,489.20 | 1,456.09 | 1,574.15 |
Debt Level: CESC’s debt to equity ratio (139%) is considered high.
Reducing Debt: CESC’s debt to equity ratio has increased from 128.7% to 139% over the past 5 years.
Debt Coverage: CESC’s debt is not well covered by operating cash flow (19.7%).
Interest Coverage: CESC’s interest payments on its debt are not well covered by EBIT (2.2x coverage).
Share Holding Pattern
| Promotor Holding | Foreign Institution | Mutual Fund | Other Domestic Institutions | Retail & Others | |
| Jun 2021 | 49.92% | 13.38% | 19.42% | 3.59% | 13.69% |
| Mar 2021 | 49.92% | 14.72% | 19.46% | 3.77% | 12.13% |
| Dec 2020 | 49.92% | 14.90% | 21.42% | 3.66% | 10.10% |
| Sep 2020 | 49.92% | 16.13% | 21.60% | 3.33% | 9.02% |
Above table showing there is no big change in Promotors holding which is 49.92% in June 2021. FIIs invested in June 2021 with 13.38% and retail investor is 13.69% .
Now We’ll check the return of the company, This company started from Rs. 16.85 at 29 jan 2003. This company given 29.06% returns in last 1 year from 2020 to 18 Aug 2021.
Investment Checklist for CESC Ltd.
- The company is currently profitable
- Earnings are forecast to grow by an average of 6.5% per year for the next 3 years
- Dividend of 5.75% is sustainable
- Share price has been stable over the past 3 months
- The company’s earnings are high quality
- Profit margins decreased but not substantially
- They have sufficient analyst coverage
- Shareholders have not been meaningfully diluted in the past year or recently listed
- Revenue is meaningful (₹122B)
- Market cap is meaningful (₹104B)
- CESC does not have negative shareholders equity.
According to its historical performance we can predict stock target.
[membership_protected_content user=non-member]
Entry Buying Zone : Premium members can see only
Target: Premium members can see only
Time Horizon:Premium members can see only
Risk Profile: Premium members can see only
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[membership_protected_content]
Entry Buying Zone : 700 to 750
Target: 1100 (50% Upside)
Time Horizon: 1 Year
Risk Profile: Low Risk (Stock is 1.88x as volatile as Nifty)
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Hope you liked Our 2nd company in the Series of Which stock pays the highest dividend in india 2021. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.
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