Shares of JSW Energy Ltd. rose the most in nearly two weeks after the Sajjan Jindal-led power firm beat analysts' estimates in the first quarter. The stock, however, pared most of the gains at close.
JSW Energy Q1 FY23 (Consolidated, QOQ)
Net Profit at Rs 554 crore vs Rs 877 crore (Estimate: Rs 404 crore)
Revenue from operations at Rs 3,026 crore vs Rs 2,441 crore (Estimate: Rs 2,252.5 crore)
Ebitda at Rs 1,022 crore vs Rs 1,132 crore (Estimate: Rs 875 crore)
Ebitda margin at 33.8% against 46.3%
The ramp-up in renewable energy capacity is on track, brokerages said, even as most of them remained cautious on the stock.
Shares of JSW Energy rose more than 6% as of 12:30 p.m. on Friday. The stock closed with nearly 1% gains. The trading volume was nearly five times the 30-day average, when markets closed.
Of the 14 analysts tracking the company, two suggest a 'buy' and 12 recommend a 'sell', according to Bloomberg data. The average of the 12-month target price implies a downside of 22.2%.
Here's what brokerages have to say about JSW Energy's Q1 results.
Jefferies
Reiterates 'buy', raises target price to Rs 315 from Rs 310, an implied upside of 33.73%.
Renewable energy capacity ramp-up is on track.
Expects 13% of coal capacity (merchant-based) to benefit from tight power demand-supply environment in FY23E-26E.
Management will maintain return discipline ahead of tariff-based competitive bidding.
Raises FY23E-25E EPS by 1-5%.
Kotak Institutional Equities
Reiterates 'sell' with a target price of Rs 115, an implied return of -52.13%.
Higher quantum of short-term sales aided Ebitda.
Current market price factors all benefits of targeted capacity additions and earnings growth till FY2030E.
The company's renewable portfolio is on track with PPAs secured for all assets.
RECOMMENDED FOR YOU
POPULAR