JSW Energy shares hit seven-month high, mcap crosses Rs 50K crore; buy, sell or hold?

Shares of JSW Energy Ltd hit a seven-month high today amid correction in the broader market. The stock, which closed at Rs 310.75 on December 6 last year, rose over 4.5% to an intraday high of Rs 309.80 on BSE today.  Shares of JSW Energy crossed the Rs 300 mark for the first time in seven months.  The energy stock last touched the Rs 300 mark on December 9, 2022 when it opened at Rs 301.55 on BSE.  

The stock of the multibagger power producer, hit a 52 week high of Rs 369 on September 5, 2022 and a 52 week low of Rs 198.05 on July 6, 2022. In the last three years, the stock has delivered 531% returns. In comparison, Sensex has risen 81.78% in three years.    

At 11:37 am, the JSW Energy stock rose 4.23% higher at Rs 306.45 against the previous close of Rs 294 on BSE. The energy stock has gained 53.08 per cent in a year and risen 5.40 per cent in 2023. In a month, JSW Energy stock has climbed 24.08 per cent.    

Total 2.40 lakh shares of the firm changed hands amounting to a turnover of Rs 7.30 crore on BSE. Market cap of the firm rose to Rs 50,413 crore.   

In terms of technicals, the relative strength index (RSI) of JSW Energy stands at 69.2, signaling it's trading neither in the overbought zone nor in the oversold zone. JSW Energy stock has a one-year beta of 1.6, indicating very high volatility during the period. JSW Energy shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.   

On the outlook of the stock, Abhijeet from Tips2trades said, "JSW Energy stock is overbought and bullish on the daily charts and a close above Rs 302 could lead to Rs 321 in the near term. Investors should book profits at current levels or keep a strict stop loss of support of Rs 293 to hold buy positions." 

Cholamandalam Securities has assigned a target of Rs 430 for the energy major.  

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“Valuing the company at 10% discount to mean PER multiple (19x) on FY26e (EPS), per share target price comes at Rs 327. Based on DCF per share value comes to Rs 529. For the purpose of valuation, we have taken average of PER and DCF based per share value, to arrive at per share target price of Rs 430,” said the brokerage.  

Net profit in the fourth quarter of last fiscal fell 68% on lower margin and higher operational cost. Q4 profit came in at Rs 282.03 crore against Rs 877 crore in the corresponding quarter a year ago.  

For FY23, net profit slipped 15% to Rs 1480 crore. Revenue from operations climbed 9% on higher sales to Rs 2,669.9 crore. FY23 revenue rose 26% to Rs 10,331 crore.  

The company's board recommended a dividend of Rs 2 per equity share and also approved the re-appointment and remuneration of Sajjan Jindal as the chairman and managing director of the company for a period of five years with effect from 1 January, 2024, subject to the approval of the members of the company.  

 

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