Uncertainty over retail, IT biz valuations stump Street

The CESC stock tanked 15% to Rs 829.80 on Thursday

The lower-than-expected March quarter results of CESC was a disappointment but the firm’s much-awaited business restructuring initiative, too, failed to impress the Street. Following these announcements on Thursday, the CESC stock tanked 15 per cent to Rs 829.80. What’s weighing on Street sentiment?

The firm with diverse interests is splitting into four firms, to handle its power distribution, power generation, retail and information technology/business process outsourcing businesses. Analysts feel, prima facie, the restructuring has been fair. The holding firm structure will also cease, which is a positive. 
 

Arun Gopalan vice-president, research and investments at Systematix Shares, said CESC has seen