Bitcoin price today: gains to $120k, near record high on U.S. regulatory cheer
On Wednesday, JPMorgan initiated coverage on JSW Energy (NSE:JSWE) Ltd (JSW:IN) with an Underweight rating and set a price target of INR 500.00. The firm pointed out that JSW Energy has adeptly handled the risks associated with India’s electricity generation sector since its listing in 2010. The company’s strategy has involved a balance between aggressive expansion and prudent adjustments to its plans in response to evolving market conditions. JSW Energy has also been recognized for managing its leverage effectively and seizing appropriate acquisition opportunities when they arose.
Despite JSW Energy’s strong operational execution and its significant growth in tied-up capacity through acquisitions and organic wins, the stock has experienced a 30% correction from its peak in September 2024. This correction is attributed to high initial valuations and a recent dip in power demand. As of the third quarter of FY25, JSW Energy’s total locked-in capacity has expanded to 28GW, compared to 8.1GW of operational capacity previously.
The market had overlooked JSW Energy’s accomplishments before the Covid-19 pandemic, leading to the stock trading at low valuations despite the company’s effective execution. However, post-Covid, as the company rapidly increased its renewable capacity, its stock underwent a significant re-rating.
The current valuation of JSW Energy at 14 times the FY27E EBITDA and 3.4 times the FY27E Price to Book Value (P/BV) is seen by JPMorgan as leaving limited room for further upside. This assessment comes in light of the recent performance where JSW Energy’s stock has underperformed compared to the NIFTY 50 index, which only saw an 11% decline over the same period.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.