CESC picks 50% stake in Dhariwal Infrastructure for Rs 200 crore

CESC picks 50% stake in Dhariwal Infrastructure for Rs 200 croreCESC Ltd, the power utility within the RPG Group, has acquired over 50% stake in Dhariwal Infrastructure Pvt. Ltd. (DIPL) for Rs 200 crore.

The acquisition follows an agreement entered into by the two companies on August 27, 2009. DIPL presently engaged in setting up a 600 MW thermal power generating station at Chandrapur in Maharashtra.

CESC expects to carry Q1 profit jump through FY10

CESCPower utility CESC Ltd announced on Friday that it hopes to maintain its 12% profit growth for the first quarter ended June 30, 2009.

Mr. Sanjiv Goenka, Vice Chairman said, "I think the first quarter is pretty much representative. I would expect similar kind of outlook for the year as we go ahead."

The firm's first quarter standalone net profit grew to Rs 1.05 billion that predicted a fall of 5.67% in profit.

CESC signs pact with Singaporean co to improve power supply

CESC, a leading private power utility conglomerate, has announced that it has clinched one year pact with Singapore-based SP Global Solutions.

According to the sources, the proposed agreement has been inked for consultancy support, technical assistance and transfer technology for power distribution and improving downtime in power supply.

CESC Medium Term Call

Stock market analyst Ashwani Gujral has suggested investors to buy CESC with price target of Rs 745. The stop loss for this counter is Rs 465.

Investors should hold the stock for a medium term. The Power sector has been performing well and CESC is expected to show robust growth in coming quarterly results. The stock has the potential to break its earlier records and achieve the said target. Power Sector has been re-rated by technical experts.