CESC shares may raise 28% on accelerated RE transition, Emkay Global says

Brokerage firm Emkay Global has initiated coverage on CESC with a ‘Buy’ rating and a price target of ₹225, implying a 28% upside from current levels.The brokerage wrote in its note that CESC’s aggressive renewable energy (RE) capacity expansion will drive a strong 25% annual growth in capacity between FY25 and FY29.
Further, Emkay believes securing power offtake arrangements will strengthen topline stability, and drive 9% revenue CAGR over FY25-28E, providing unit economic benefits amid rising power demand.
Additionally, Emkay sees profit-focused distribution operations, tariff hikes, and regulatory gains boosting cash flows. These, in turn, will improve returns and support higher capital spending through internal funds.Net profit is projected to grow at 11% annually, with PAT margins expanding by 40 basis points during FY25–28.

On a consolidated basis, return on equity (ROE) and return on invested capital (ROIC) are expected to improve by 170 bps and 280 bps, respectively, by FY28.

Of the 11 analysts that have coverage on CESC, nine of them have a ‘Buy’ rating, while one each have a ‘Hold’ and a ‘Sell’ recommendation on the stock.

CESC shares are currently trading 0.18% lower at ₹174.89, and are down 6% so far in 2025.