Power Stock to Watch: Brokerage firm Motilal Oswal (MOFSL) has identified JSW Energy as a promising pick. The company boasts a market capitalization of Rs. 79,514.73 crore, with its stock currently trading at Rs.454.95—44% below its 52-week high.
Power Stock to Watch: With summer approaching, electricity consumption is set to rise sharply from April onwards, bringing increased focus on power sector companies as demand surges.
JSW Energy: A Power Stock with Strong Growth Potential
Diversified Power Generation Portfolio
JSW Energy operates across thermal, hydro, wind, and solar power segments, making it a well-diversified player in the power generation sector.
Brokerage Ratings and Growth Outlook
Brokerage firm Motilal Oswal (MOFSL) has issued a bullish outlook on JSW Energy, estimating a 55% long-term upside for investors. The stock is currently trading around Rs. 455, 44% below its 52-week high of Rs. 804.95.
JSW Energy’s KMPCL Acquisition
JSW Energy is in the process of acquiring KSK Mahanadi Power Company (KMPCL), which has a total capacity of 3,600 MW, with 1,800 MW already operational.
- The Creditors’ Committee approved the acquisition in January.
- It has received NCLT approval, while CCI clearance is pending.
- Final approval is expected in Q1 FY26.
- Under the deal, JSW Energy will hold a 74% stake, with creditors retaining the remaining 26%.
- The Net Present Value (NPV) of JSW’s stake is estimated at Rs. 27 per share.
10 GW Power Target by FY25
JSW Energy aims to become a 10 GW power company by FY25, and management has reiterated that it remains on track.
- In Q3 FY24, it acquired 4,696 MW from O2 Power.
- It also acquired a 125 MW renewable energy plant from Hetero Group.
- The company’s total power generation capacity now stands at 6,751 MW.
JSW Energy Share Price Target
MOFSL has set a target price of Rs. 705, based on Sum-of-the-Parts (SoTP) valuation metrics, representing a 55% upside from the current price of Rs. 454.95.
- In September 2024, JSW Energy hit a 52-week high of Rs. 805.
- On February 17, 2025, the stock hit a low of Rs.420, marking a 40% drop from its peak.
With strong expansion plans, strategic acquisitions, and a bullish brokerage outlook, JSW Energy remains a key stock to watch in the power sector.
