Which stock pays the highest dividend in india – CESC Ltd

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

Jan. 22, 202145.00INTERIM
Feb. 18, 202020.00INTERIM
Feb. 14, 201917.50INTERIM

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

202013,008.17 1,267.04

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

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

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 HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 2021 49.92% 13.38%19.42% 3.59%13.69%
Mar 202149.92%14.72% 19.46% 3.77%12.13%
Dec 202049.92%14.90%21.42%3.66%10.10%
Sep 202049.92%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.

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

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.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss

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