The share price of CESC rallied over 6 percent to hit a 52-week high of Rs 819.15 in early trade on Thursday after the company reported its Q4 earnings showing signs of improvement in the business and approved a proposal for a sub-division of equity shares.

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CESC reported a 13.5 percent rise in its consolidated net profit at Rs 429 crore in the fourth quarter of fiscal 2021 as against Rs 378 crore in the year-ago period. The company’s revenue increased to Rs 2,890 crore from Rs 2,621 crore, YoY.

The board of CESC also approved a proposal for sub-dividing the existing equity share of a nominal value of Rs 10 each into 10 equity shares of a nominal value of Re 1 each, subject to the approval of the shareholders.

“CESC’s 4QFY21 result highlights a modest recovery in the standalone business. Volumes in the standalone entity improved but grew just 6 percent YoY on a low base. Dhariwal power station has turned profitable, and DFs are showing signs of improvement,” brokerage Motilal Oswal said.

It raised the FY22E EPS by 9 percent to account for higher profitability at Haldia as the new tariff order is delayed. "Even as visibility of earnings at Dhariwal improves, we factor in tightening of norms at Haldia and for the standalone entity in FY23E," the brokerage said.

It maintains 'buy' with a target price of Rs 905.

At 11:45 am, the stock was trading 1.62 percent higher at Rs 782.80 apiece on the BSE.

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