CESC Experiences Shift in Market Sentiment Amid Strong Cash Flow and Liquidity Position

Oct 29 2025 08:12 AM IST
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CESC, a small-cap power generation and distribution company, has experienced a change in its technical outlook. The firm reported strong operating cash flow of Rs 1,821.26 crore for the September 2025 quarter and maintains a solid interest coverage ratio. However, it faces challenges with modest long-term growth and a high debt to EBITDA ratio.
CESC, a small-cap player in the power generation and distribution industry, has recently undergone an adjustment in evaluation, reflecting a shift in its technical outlook. The technical indicators show a transition from a bullish stance to a mildly bullish perspective, suggesting a nuanced change in market sentiment.

In terms of performance metrics, CESC reported a notable operating cash flow of Rs 1,821.26 crore for the quarter ending September 2025, marking a significant achievement. The company's operating profit to interest ratio stands at 3.15 times, indicating a solid capacity to cover interest expenses. Additionally, CESC holds cash and cash equivalents of Rs 45,210 crore, which contributes to its liquidity position.

Despite these positive indicators, the stock's long-term growth has been modest, with an annual operating profit growth rate of 3.56% over the past five years. The company also faces challenges with a high debt to EBITDA ratio of 4.78 times, which may impact its ability to service debt effectively.

CESC's current trading price is Rs 178.55, with a dividend yield of 5.9%, and it has demonstrated a return of 0.79% over the past year. The stock's performance has been compared to the Sensex, highlighting its relative standing in the market.

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