JSW Energy
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
JSW Energy's management is executing a robust growth strategy focused on expanding its renewable energy capacity while maintaining a diversified generation mix. The company is on track to achieve its ambitious target of 30 GW by 2030, supported by a significant Rs. 20,000 crore capex for FY27. Despite facing short-term headwinds from weak hydrology and elevated costs, management's confidence in long-term demand and strategic initiatives, such as vertical integration and securing long-term PPAs, underpins Vista's forecast of improving margins and revenue growth. The company's premium valuation reflects its growth potential, although elevated leverage poses financial risks. Industry dynamics, particularly the strong demand for renewable energy in India, further support this outlook. Over the next 12-24 months, key opportunities include the successful execution of capacity expansion projects and advancements in energy storage, while watchpoints include potential regulatory challenges and the execution risks associated with large-scale projects
Why We Like This Stock
- Aggressive capacity expansion strategy targeting 30 GW by 2030, supported by significant capex
- Vertical integration initiatives enhance operational efficiencies and reduce costs
- Strong demand for renewable energy in India provides a favorable market backdrop
Things To Watch Out For
- Elevated leverage and financial stress risk may impact capital allocation and operational flexibility
- Short-term headwinds from weak hydrology and increased depreciation costs could pressure margins
- Execution risks associated with large-scale projects and potential regulatory hurdles in new energy segments
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 11,486 | 11,745 | 18,901 | 18,417 | 21,306 |
| Profit Before Tax (Cr.) | 2,087 | 2,010 | 2,051 | 1,324 | 2,490 |
| PBT Margin | 18.2% | 17.1% | 1085.1% | 7.2% | 11.7% |
| Net Profit (Cr.) | 1,708 | 1,658 | 1,705 | 1,100 | 1,434 |
| Earnings Per Share | 9.3 | 8.9 | 6.5 | 4.2 | 7.8 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Axis Securities | ▲ Buy | 630 | 13-May-2026 |
| CLSA | ► Hold | 629 | 23-Jul-2026 |
| Citigroup | ▲ Buy | 650 | 23-Jul-2026 |
| Elara Capital | ► Accumulate | 633 | 22-Jul-2026 |
| Geojit Financials | ▲ Buy | 639 | 31-Jul-2026 |
| ICICI Securities | ▲ Buy | 700 | 23-Jul-2026 |
| JMFinancials | ► Hold | 642 | 09-Jun-2026 |
| JPMorgan | ▼ Reduce | 505 | 12-May-2026 |
| Jeffries | ▲ Buy | 720 | 23-Jul-2026 |
| Kotak Securities | ▼ Sell | 475 | 23-Jul-2026 |
| Macguire | ▲ Buy | 720 | 23-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 23-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 667 | 23-Jun-2026 |
| Prabhudas Liladhar | ▲ Buy | 646 | 23-Jul-2026 |
Company Overview
Show Company Profile
JSW Energy Limited generates and sells power in India. It has a power generation capacity of 10,875 MW, which includes 5,658MW of thermal, 1,391 MW of hydro, 1,671 of Wind, and 680 MW of solar. The company has operations in the States of Karnataka, Punjab, Maharashtra, Tamil Nadu, Himachal Pradesh, Odisha, Andhra Pradesh, Telangana, Madhya Pradesh, Chhattisgarh, Gujarat, and Rajasthan. The company engages in power transmission and trading activities; and coal mining in South Africa. JSW Energy Limited was incorporated in 1994 and is based in Mumbai, India.