CESC Share Price Gains Amid Renewable Energy Expansion

CESC Share Price Update: Strong Momentum Amid Key Moving Averages

On October 18, 2024, the share price of CESC Ltd gained 1.64%, opening below the key short-term moving average of 20-DMA. As the day progressed, the stock slipped below the 50-DMA but quickly recovered from intraday lows of Rs 187.35 to touch a high of Rs 200.40. By 2:56 PM, the share price was trading above its 20, 50, and 200-DMA, demonstrating resilience. The stock has posted a weekly gain of about 6%, with an impressive year-to-date (YTD) increase of 48.30%.

Strategic Acquisitions Boost CESC’s Renewable Energy Portfolio

In a recent move, CESC Limited expanded its renewable energy footprint by acquiring Deshraj Solar Energy Private Limited through its subsidiary, Purvah Green Power Private Limited. This acquisition, involving a 300 MW solar PV power plant project, is a part of CESC’s broader strategy to strengthen its presence in the renewable energy sector. The deal, expected to close within two days, will see Deshraj Solar becoming a step-down subsidiary of CESC, further solidifying the company’s position in the growing solar energy market.

CESC: A Powerhouse in Electricity Generation and Distribution

Founded in 1978, CESC Ltd is the flagship company of the RP-Sanjiv Goenka Group. It holds a license to supply electricity in Kolkata and Howrah until 2038, serving over 3.6 million consumers across a 567 sq. km area. The company boasts an own-generation capacity of 885 MW, primarily coal-based, and operates two wholly-owned subsidiaries, HEL and DIL, which manage thermal power plants with a combined capacity of 1,200 MW.

CESC’s expansion in power distribution includes a strong presence in Noida, through its subsidiary Noida Power Company Limited (NPCL), and in key regions like Kota, Bharatpur, and Bikaner in Rajasthan. The company’s long-term power purchase agreements (PPA) ensure stable revenue streams, making CESC a reliable player in the energy sector.

Renewable Energy and Future Prospects

CESC’s strategic investments in renewable energy, including an 18 MW solar power asset and a 40 MW coal washery rejects-based plant through its subsidiary, Crescent Power Limited, indicate a focused drive towards sustainability. With the recent acquisition of Deshraj Solar, CESC is set to further bolster its clean energy portfolio, positioning itself for future growth in both renewable energy and power distribution.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.