JSW Energy Ltd., incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 26719.92 Crore) operating in Power sector.
Financials
For the quarter ended 31-03-2021, the company reported a Consolidated Total Income of Rs 1614.09 Crore, down -2.72 % from last quarter Total Income of Rs 1659.26 Crore and down -12.64 % from last year same quarter Total Income of Rs 1847.65 Crore. Company reported net profit after tax of Rs 99.18 Crore in latest quarter.
Investment Rationale
Over the past 4-5 years, JSWEL has changed its strategy a couple of times, which can be partly attributed to sectoral shifts. It has proved itself credibly in terms of project execution and operational capabilities, but we await more clarity and pace pickup in the RE auction space for incorporating capacities beyond 7GW. The brokerage incorporates these developments in SoTP valuation and increases target price for the stock to Rs130 (earlier: Rs83) giving value to renewables platform growth as well. However, as valuations have run up before earnings visibility, it downgrades the stock from Reduce to SELL.
Promoter/FII Holdings
Promoters held 74.7 per cent stake in the company as of March 31, 2021, while FIIs held 5.5 per cent, DIIs 7.2 per cent and public and others 12.6 per cent.
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