Shares of JSW Energy have delivered multibagger returns so far this year as the stock rose more than 410% in 2021 (year-to-date or YTD). business around ₹58 per share level, multibagger stock currently hovers ₹345 each, an increase of over 485% over a period of one year.
For the quarter ended September, JSW Energy on Friday reported a 3.7% decline in its consolidated net profit ₹339 crore for the September 2021 quarter. Total revenue up 12% year-on-year ₹2,237 crore, primarily on account of growth in short-term sales and higher other income.
Brokerage firm ICICI Securities. The stock has a SELL rating with a revised target price of ₹150 per share (from ₹130 earlier). “While it has a strong track record of efficient commissioning and handling of assets, competition is fierce,” the brokerage note said.
The RE projects under construction will be commissioned in parts starting with 225MW of solar in Q4FY22. According to the brokerage, this will help transform the company from a majority coal to a majority green player. JSW Energy is expected to take a decision on restructuring its green and gray business in the next few months.
The note further states that the company has placed orders for solar modules and wind turbines for its various under-construction RE projects. It has started receiving solar modules and installation work is underway. It is aggressively tying up resources, especially land, and has also signed an MoU with the Maharashtra government for resources for 5GW wind and 1.5GW hydro pumped storage projects.
“We maintain sell on the stock but increase our target price to Rs 150 (earlier: Rs 130) as we roll over to FY 24E and incorporate higher cash and investments. We await the company’s decision on restructuring,” ICICI Securities said.
The views and recommendations given above are those of individual analysts or broking companies and not of Mint.
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