Shares of JSW Energy Ltd have seen correction from their record highs in the last three months. JSW Energy stock, which touched a record high of Rs 804.95 on September 24, 2024 are down 30% from that level. Of late, the JSW Energy stock has seen more sellers than buyers on the bourses. The energy stock is oversold on charts with its relative strength index (RSI) falling to 24.9. In terms of price action, JSW Energy shares are trading lower than the 5 day, 10 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.
In the current session, JSW Energy stock slipped 2.51% to Rs 565.05 against the previous close of Rs 579.60 on BSE. Total 1.11 lakh shares of JSW Energy changed hands amounting to a turnover of Rs 6.30 crore on BSE. Market cap of the firm slipped to Rs 98,748 crore.
The stock has gained 24.11 per cent in a year and gained 98.63 per cent in two years.
Axis Securities has initiated coverage of JSW Energy with a BUY call and a target price of Rs 800 per share, implying a potential upside of 26%.
"The company aims to achieve 20 GW of total installed capacity (current installed capacity of 7.7 GW) along with 40 GWh/5 GW of energy storage capacity by 2030. After the recent announcement of the acquisition of the O2 Power platform of 4.69 GW, the company now targets 12 GW of installed capacity by Jun’25 (as against the earlier target of 10 GW by Mar’25 before the O2 Power acquisition). The majority of its under-construction and pipeline projects are renewable. Out of its total locked-in capacity of 24.7 GW, ~20.9 GW is from RE capacity," said the brokerage.
"We initiate coverage on the company with a BUY rating on the stock and arrive at our Mar’26 target price of Rs 800/share. We value the generation business at 15x FY27 EV/EBITDA and the energy storage business at 1x P/BV of the target equity investment. We further adjust the TP for JSWE’s 2.9% stake in JSW Steel," said Axis Securities.
Laxmikant Shukla, Senior Manager - Technical Research at YES Securities has a sell call on the stock with a price target of Rs 580. Stop loss can be fixed at Rs 700.
"JSW Energy has reversed downward from the resistance line on the daily chart, highlighting bearish dominance. The Ichimoku Cloud's conversion line has served as immediate resistance, maintaining a bearish outlook and reinforcing negative sentiment. Prices are currently trading below the convergence line, which could intensify selling pressure. Additionally, the daily MACD remains in negative territory, further supporting the possibility of a continued downtrend. The overall trend for JSW Energy appears negative. A 'sell on rise' strategy is advised with an entry around Rs 655-665, a target of Rs 580, and a stop-loss at Rs 700," said Shukla.
Motilal Oswal Financial Services has assigned a price target of Rs 810 per share.
The brokerage likes the overall quality of assets. It values JSW Energy's core business at 15 times FY27 EBITDA. The stake in JSW Steel is valued at a 25 per cent discount to the current market price, it said.
The total equity value of JSW Energy was determined by aggregating the values from these different components, leading to a target price of Rs 810 per share, added Motilal. "Additionally, note that we see an option value of Rs 60 per share from KSK Mahanadi, which should materialize once the deal is approved."