The shares of a large-cap power stock primarily which is engaged in the power generation business from its assets located at Maharashtra, Karnataka, Salboni, and Nandyal up 4 percent touching an intra-day high. This surge in stock price is due to an MoU with Korea’s Posco Group to collaborate on steel plant and battery materials, and renewable energy in India.
Share price movement
In Tuesday’s trading session, the shares of JSW Energy Limited went up 4.3 percent in intra-day touching a high of Rs.671 per share, from its previous close of Rs.642.90 apiece. The share has retreated since then and is trading at Rs.669.65 apiece.
Rationale for Rise
JSW Energy has signed a Memorandum of Understanding (MoU) with Korea’s Posco Group to develop an Integrated steel plant in India with an Initial capacity of 5 MTPA.
Memorandum of Understanding Objective
From this MoU, both groups plan to develop a steel plant in India. Further, beyond steel, the partnership also aims to collaborate on battery materials and renewable energy. This partnership is expected to boost India’s steel production capacity.
Management Commentary
The Chairman of JSW Group, Sajjan Jindal views the the MoU with POSCO as a significant step in the steel industry. This JV also contains collaboration on renewable energy for a state-of-the-art integrated steel plant and to set up an EV ecosystem in India.
From the MoU, the chairman of POSCO said that they are delighted to strengthen ties with JSW Group and this collaboration will contribute significantly to the economic development of Korea and India.
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Financial Performance
JSW Energy Limited reported its financial results and in Q2FY25 revenue from operations was down by 0.64 percent year-on-year. From Rs. 3,259 crore in Q2FY24 to Rs.3,238 crore in Q2FY25. Additionally, Profit After Tax (PAT) was up in Q2FY25. It was Rs.857 crore in Q2FY24 to Rs. 877 crore in Q2FY25.
Company Profile
JSW Energy stands as one of India’s foremost power companies, operating an impressive 4.6 GW capacity across thermal, hydro, wind, and solar energy sources. With a clear vision for growth, JSW Energy aims to expand its capacity to 20 GW by 2030, while focusing on renewable energy. Its diversified portfolio and strategic operations across various Indian states, along with international stakes help mitigate risks and ensure robust performance in the evolving energy landscape.
Written by – Santhosh S
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