JSW Energy
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
JSW Energy's recent management commentary highlights a robust growth strategy focused on expanding renewable capacity and vertical integration, which is expected to drive long-term revenue growth and margin improvement. The company is on track to achieve its ambitious target of 30 GW by 2030, supported by a strong balance sheet following a significant capital raise. Despite facing short-term headwinds from hydrology-related generation volatility and elevated costs, management remains confident in the structural demand for power in India, projecting a 12% growth in July. Vista's financial outlook reflects a moderate revenue growth trajectory, with improving margins anticipated as newly commissioned assets stabilize. The premium valuation suggests that the market is pricing in these growth expectations, with an expected upside of approximately 11.4%. However, challenges such as high tariffs on solar module exports and competitive pricing pressures could temper profitability. Over the next 12-24 months, key opportunities include scaling renewable capacity and expanding into energy storage, while watchpoints include execution risks associated with large-scale projects and potential regulatory hurdles in new energy segments
Why We Like This Stock
- Management's bullish outlook on structural power demand supports long-term revenue growth
- Successful capital raise enhances financial flexibility for aggressive capacity expansion
- Strategic vertical integration is expected to improve margins and operational efficiency
Things To Watch Out For
- Short-term headwinds from hydrology-related generation volatility may impact earnings
- High tariffs on solar module exports could limit revenue growth in the renewable segment
- Execution risks associated with large-scale projects may pose challenges to achieving growth targets
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 11,486 | 11,745 | 18,901 | 18,189 | 20,158 |
| Profit Before Tax (Cr.) | 2,087 | 2,010 | 2,051 | 1,708 | 2,383 |
| PBT Margin | 18.2% | 17.1% | 10.9% | 9.4% | 11.8% |
| Net Profit (Cr.) | 1,708 | 1,658 | 1,705 | 1,419 | 1,372 |
| Earnings Per Share | 9.3 | 8.9 | 6.5 | 5.4 | 7.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| BNP Paribas | ► Neutral | 600 | 29-Sep-2026 |
| Jeffries | ▲ Buy | 720 | 21-Sep-2026 |
| Geojit Financials | ▲ Buy | 639 | 31-Jul-2026 |
| CLSA | ► Hold | 629 | 23-Jul-2026 |
| Citigroup | ▲ Buy | 650 | 23-Jul-2026 |
| ICICI Securities | ▲ Buy | 700 | 23-Jul-2026 |
| Kotak Securities | ▼ Sell | 475 | 23-Jul-2026 |
| Macguire | ▲ Buy | 720 | 23-Jul-2026 |
| Moneycontrol | ▲ Overweight | nan | 23-Jul-2026 |
| Prabhudas Liladhar | ▲ Buy | 646 | 23-Jul-2026 |
| Elara Capital | ► Accumulate | 633 | 22-Jul-2026 |
| Morgan Stanley | ▲ Overweight | 667 | 23-Jun-2026 |
| JMFinancials | ► Hold | 642 | 09-Jun-2026 |
| Axis Securities | ▲ Buy | 630 | 13-May-2026 |
| JPMorgan | ▼ Reduce | 505 | 12-May-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.