One of the large-cap power stocks engaged in power generation, trading, mining, and manufacturing, focusing on thermal, hydro, wind, and solar energy sources. The stock has plunged by 6.08 percent after CERC rejected its proposed tariff with SECI. The stock is trading at a discount of 25% from its 52-week high.
Stock Price Movement
In Monday’s trading session, Kirloskar Pneumatic Company Limited’s share jumped to an intraday low of 6.08 percent from the previous close of Rs. 634.45. The stock opened at Rs. 615 and is currently trading at Rs. 605.90 with a high of Rs. 624.25 and a low of Rs. 595.90.
The market capitalization now stands at approximately Rs. 1,05,897.29 crore. The stock is down almost 24.73 percent from the 52-week high of Rs. 804.95
What Happened
JSW Energy encountered a setback as the Central Electricity Regulatory Commission (CERC) rejected its proposed tariff for its 500 MW/1000 MWh standalone battery energy storage project with the Solar Energy Corporation of India (SECI).
CERC pointed out that the proposed tariff, which was agreed upon in January 2023, was much higher than the prices discovered in recent auctions.
The commission also mentioned that delays by SECI in signing the Battery Energy Storage Purchase Agreement and Sale Agreement contributed to the tariff not aligning with current market prices.
Expansion Projects
JSW Energy Limited has made significant strides in expanding its energy portfolio. As of Q2 FY25, the company is constructing 2,536 MW of wind, 2,779 MW of solar, 2,026 MW of hybrid, and 350 MW of thermal power, with additional projects in the pipeline, including 560 MW of solar and 2,730 MW of hybrid energy.
The company secured renewable energy bids for 3,700 MW, raising its total locked-in capacity to 19,200 MW. It aims to reach 10,000 MW by FY25 and 20,000 MW by FY30. JSW Energy is also advancing green hydrogen and energy storage projects to enhance its clean energy portfolio.
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Recent quarter results and ratios
JSW Energy Limited’s revenue has decreased from Rs. 3,259 crore in Q2 FY24 to Rs. 3,238 crore in Q2 FY25, which has down by 0.64 percent. The net profit of JSW Energy Limited has also grown by 2.33 percent from Rs. 857 crore in Q2 FY24 to Rs. 877 crore in Q2 FY25.
JSW Energy Limited’s revenue and net profit have grown at a CAGR of 18.39 percent and 27.98 percent, respectively, over the last three years.
In terms of return ratios, the company’s ROCE and ROE should be 8.59 percent and 8.40 percent, respectively. The debt-to-equity ratio of the company is to be 1.10x. JSW Energy Limited’s EPS is to be Rs. 11.4.
Target
● Motilal Oswal has given a buy target for JSW Energy of Rs. 801, which has an upside potential of 34.65 percent. The rationale will be that JSW Energy announced acquiring O2 Power for INR 124.68b in cash, a positive strategic move for growth.
● Hem Securities has set a buy target of Rs. 744 for JSW Energy, indicating a potential upside of 23.68 percent. According to securities, JSW Energy’s strong focus on renewable energy, energy storage, green hydrogen, and disciplined financial management positions it well for long-term growth during India’s energy transition.
Company Overview
JSW Energy Limited was founded in 1994 and headquartered in Mumbai, Maharashtra. The company is a leading power generation company in India and a key part of the JSW Group.
The company operates power assets in Karnataka, Maharashtra, Nandyal, and Salboni and focuses on renewable energy. It also has a joint venture in mining and an associate in turbine manufacturing.
Written By – Nikhil Naik
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