Evaluation Metrics Reflect Mixed Signals Amidst Technical Optimism
Quality Assessment: Operational Strengths and Debt Concerns
CESC’s operational cash flow for the fiscal year stands at ₹1,821.26 crores, marking a significant figure that underscores the company’s ability to generate liquidity from its core activities. Additionally, the operating profit to interest coverage ratio for the recent quarter is recorded at 3.15 times, indicating a capacity to meet interest obligations comfortably in the short term. Cash and cash equivalents have reached ₹45,210 crores in the half-year period, providing a substantial liquidity buffer.
However, the company’s debt servicing capability presents a contrasting picture. With a Debt to EBITDA ratio of 4.58 times, CESC carries a relatively high leverage…
