JSW Energy share price is in focus after reporting weak Q4 numbers. The share price is up about 2% after most brokerages put out a positive recommendation on the stock despite soft Q4. They have a Buy rating on JSW Energy and expect upside of 10-20% in the price over the next 12 months. According to most, the aggressive capacity generation plan will support the revised higher estimates.
Motilal Oswal on JSW Energy
Motilal Oswal has a Buy rating on JSW Energy with a target price of Rs 592 per share. This implies over 21% upside from current levels. However, the brokerage house expects some near-term pressure on the share price of JSW Energy on weaker power demand growth at 2% in April.
JM Financial on JSW Energy
JM Financial also maintains a Buy rating on the stock with a target price of Rs 543 per share. This price target implies about a 10% upside from current levels. While JM Financial highlighted “risks emanating from bundling of complex and capex-heavy infra projects within a short time-frame of 5 years,” they also pointed out that this indicated the JSW Group company is aggressively pursuing a growth agenda with a change in strategy from a volatile merchant tariff to one focused on stable cash flows. They estimate company to report a compounded revenue growth of 25% over the next five years.
JSW Energy Q4FY25 performance
A look at JSW Energy’s Q4 performance will highlight that the weakness in Q4FY25 earnings performance was primarily driven by softer performance at the Ratnagiri and Barmer thermal power plants. The net power generation in these two plants declined by 7% and 11% YoY, respectively. The other big worry is that the EBITDA margins . They remained under pressure in Q4 despite lower fuel costs. This is as a result of higher employee expenses and elevated other operating costs.
JSW Energy: Key Acquisitions
JSW Energy has successfully completed the acquisition of both KSK Mahanadi and O2 Power. These two are expected to drive EBITDA growth in FY26. Currently the 1,800 MW (3×600 MW) is operational at Mahanadi Power and is 95% tied-up under long & medium-term PPAs. Additionally, the plant has a firm arrangement for water and coal transportation for the entire 3,600 MW.
Overall, JSW Energy has set a roadmap to reach 30GW of total generation capacity and 40GWh of energy storage by 2030. By FY30, JSWE expects EBITDA to grow by 2.7x to 3x. According to the company, this growth will be supported by planned capex of Rs 1,30,000 crore between FY26 – FY30