CESC - powering Kolkata.
Printed From: The Equity Desk
Category: Investment Ideas - Creating winning portfolios!
Forum Name: Stock Synopsis
Forum Discription: A bried discussion of companies on very specific matters. Normally this is the prelude for further research as always members would be discussing quality companies with good management only
URL: http://www.theequitydesk.com/forum/forum_posts.asp?TID=2354
Printed Date: 21/Apr/2025 at 6:20pm
Topic: CESC - powering Kolkata.
Posted By: Jaishrikrishna
Subject: CESC - powering Kolkata.
Date Posted: 01/Sep/2009 at 6:04pm
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Overview:
CESC Limited is engaged in the business of generation and distribution of electricity within the licensed area of 567 square kilometers in the city of Kolkata and its adjoining areas. The Company has four coal-based generating stations at Budge Budge, Southern, Titagarh and New Cossipore. The Company operates in three segments: power, which includes generation and distribution of electricity; retail, which is engaged in organized retailing, and property, which is engaged in property development. Its subsidiaries are Spencer’s Retail Limited, Music World Retail Limited, Au Bon Pain Cafe India Limited, CESC Properties Limited, Metromark Green Commodities Private Limited and Haldia Energy Limited. The Company’s interests in jointly controlled entity remains in Mahugarhi coal Company Private Limited. In August 2009, CESC Limited acquired an interest in Dhariwal Infrastructure Private Limited (DIPL). DIPL became a subsidiary of the Company. Cmp: 364.40 Market cap: 4551.36 CR Revenues FY 09: 3194 CR EPS FY 09: 32.54 ROE: 14.05% Curr. PE: 11.38 Cash And Cash equivalent at the end of Mar 09:1251.03 CR. Stock looks goods for Investment purpose compared to its power peers. Basantjee and all ted members post ur views, will keep updating. Rgds. ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Replies:
Posted By: hit2710
Date Posted: 01/Sep/2009 at 8:07pm
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Any details about debt Burden? And dividend yield?
If available please share it. Retail might be some sort of drag on the company because of long gestation period. Value unlocking can be done if and when retail division is spun off and listed seperately. ------------- Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart. |
Posted By: Jaishrikrishna
Date Posted: 01/Sep/2009 at 8:39pm
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Spencer’s to roll out Ladybird in India soon
Spencer’s, the Rs 800-crore retail arm of the RPG Group, is set to roll out the international Ladybird range of children’s wear, owned by the British high-street retail chain Woolworths in India in the next two weeks. Spencer’s has entered into a tie-up with the $6-billion UK retailer Woolworths to exclusively sell its select products through its nation-wide chain in the country. The Indian retailer has a slew of private labels in the garment segment that include Island Monks and Mark Nicolas in the men’s and women casual/formal wear, Puddles for infants and Little Devils for kids below 14 years. “We expect to have the Ladybird range of kids’ wear in our outlets in the next ten to 15 days,” Mr Harsh Goenka, Chairman of the RPG Group, told Business Line. This is part of Spencer’s move to increase focus on the apparel segment, which is domestically growing at a brisk pace. Mr Goenka said the company has recently tied up with the US bakery café, Au Bon Pain, to unroll a chain of standalone outlets in the country. “This will be introduced by the end of this year,” he said. Spencer’s has formed a joint venture called Novel Confectioners, which will be the master franchiser of Au Bon Pain (which means the place of good bread) in India. The Boston-based casual dining and bakery chain has more than 225 outlets fanned out across the US, South Korea, Taiwan and Thailand. The joint venture will set up 100 stores in the next 18-24 months with an outlay of Rs 50 crore, the first being planned in Bangalore over a 2,000- sq ft area by December this year. The stores will serve an assortment of breakfast and lunches such as soups, stews, sandwiches, sales, bread & bakery items, confectionaries and beverages. Spencer’s currently has 400 stores across India with a total retail space of 14.27 lakh sq ft. It plans to increase the number of stores to 1,000 with a total retail space of 30- lakh sq ft by the end of the current fiscal, involving an investment of Rs 1,500 crore. A company official said the focus would be more on large format stores. “Currently, we have 15 hyper stores and 12 supers, which are to go up to 45 and 30 respectively by the end of this fiscal. In terms of turnover, we are currently at Rs 800 crore and planning to touch the Rs 2,000-crore mark by this fiscal,” he said Spencer’s will be sharpening its focus on private labels this year. In the private label programme, the retailer sources directly from the manufacturers and sells through its stores, which enables him to offer the products at lower price points. “We plan to increase the share of private label contribution from 25 per cent to 40 per cent in the next two years,” the official said. August 5, 2008 Source: Hindu Business Line ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: Jaishrikrishna
Date Posted: 01/Sep/2009 at 8:40pm
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Spencer's to shut 40 & open 300 outlets
RPG Group company Spencer’s Retail has decided to close down at least 40 unviable outlets and open another 300 in the next 12 months. The company is also looking at developing the Old Mint building on Strand Road where it intends to put up a mall to begin with. Talking to reporters on the sidelines of the 30th AGM of CESC, Sanjiv Goenka said: “At least 10% of our existing Spencer’s outlets are loss-making and we have decided to close them down. Currently, there are about 410 outlets nationally and the exact number of loss-making stores will be mapped and a decision on closing them down will be taken soon. Stores that have turned unprofitable are mainly due to very high rents, bad hinterland and poor sales. Parallely, we intend to open 300 new stores in the next 12 months.” Mr Goenka, however, declined to disclose details of locales which will see shutdown of outlets. July 31, 2008 Source: Economic Times ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: Jaishrikrishna
Date Posted: 01/Sep/2009 at 8:55pm
Debt is around 2867.89 CR as of Mar-09. D/E ratio 0.98. D.Y.is at 1.10%. ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: Jaishrikrishna
Date Posted: 01/Sep/2009 at 9:01pm
As per the above interview held last year, they have closed couple of stores which were loss making, a store near my resi in mumbai was closed down 3 months back, as they used to put sale of vegies on wednesdays and people used visit the store to buy vegies for the whole week and defreeze it on that particular day,as it was cheaper then the bhaji wala's. Disclosure:Obviously Even i used to visit the store on wednesdays with my Gharwali.  ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: Jaishrikrishna
Date Posted: 01/Sep/2009 at 9:07pm
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RPG group plans to sell 20 pct in Spencer's Retail
KOLKATA, Aug 28 2009(Reuters) - RPG Group is planning to offload 20 percent stake in its retail arm Spencer's Retail, a senior company official said on Friday. Spencer's Retail is a unit of RPG group firm CESC Ltd (CESC.BO: Quote, Profile, Research). "We are looking at divesting 20 percent stake in Spencer's Retail and negotiations are on," Sanjiv Goenka, vice chairman, RPG Group, told reporters at a press conference, while declining to divulge valuations. "We are looking at private equity, so that we can add value to the franchise," he added. (Reporting by Niladri Bhattacharya) ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: FutureBull
Date Posted: 01/Sep/2009 at 11:07pm
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how is the mgmt quality.. i had found lot of grey areas in this comp. ------------- ‘The market always does what it’s supposed to — BUT NEVER WHEN’. |
Posted By: Hitesh Shah
Date Posted: 01/Sep/2009 at 10:39am
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http://www.business-standard.com/india/news/cesc-power-packed-agenda/368775/ - CESC: Power-packed agenda
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Posted By: basant
Date Posted: 01/Sep/2009 at 10:55am
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The Management is a big suspect!
------------- 'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in |
Posted By: wiseowl
Date Posted: 01/Sep/2009 at 11:42am
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The growth of all companies belonging to this group are heavily funded by debt. By the time one company is just about to do good, they start diversifying in unrelated areas.
------------- You alone are responsible for your actions. |
Posted By: smartcat
Date Posted: 02/Sep/2009 at 1:26pm
Does this mean it absolutely MUST be in my portfolio?
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Posted By: kulman
Date Posted: 02/Sep/2009 at 1:35pm
ha ha haTheir surname unfortunately doesn't end with letters NI. ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Jaishrikrishna
Date Posted: 04/Sep/2009 at 11:03pm
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RPG Group jumps on power bandwagon, to invest Rs 10000cr. http://www.moneycontrol.com/mccode/news/article/news_article.php?autono=414295&special=mkt_topnews - Click on. . ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: Vivek Sukhani
Date Posted: 05/Sep/2009 at 6:45pm
hey, what do you mean???? My surname also ends with 'NI'.
------------- Jai Guru!!! |
Posted By: kulman
Date Posted: 05/Sep/2009 at 6:57pm
 मेरा भी ........There are lots of exceptions. That was targeted at Biyani, Adani, Ambani et al. (favourites of smartcat) ------------- Life can only be understood backwards—but it must be lived forwards |
Posted By: Vivek Sukhani
Date Posted: 05/Sep/2009 at 7:04pm
hehehe....I knew that.
By the way, is biyani a suspect as well????? ------------- Jai Guru!!! |
Posted By: Jaishrikrishna
Date Posted: 14/Oct/2009 at 10:55pm
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sanjeev goenka interview with NDTV Profit. http://www.ndtv.com/news/videos/video_player.php?id=1166529 - here. ------------- Don't Buy and Hold, Buy and Homework / Fish see the bait,but not the hook; Men see the profit, but not the peril. |
Posted By: pramodjain
Date Posted: 05/Jul/2010 at 5:54pm
SIR, CAN YOU SHARE SOME INFORMATION OR INCIDENT REGARDING YOUR ABOVE STATEMENT. I think this is one of the best performing company and offer good value in power stock compare to R power, Tata Power Adani Power JP power etc. Rgds ------------- "We simply attempt to be fearful when others are greedy, and greedy only when others are fearful." |