JP Power shares hit new 52-week high! Stock rallies 54% in a month; is more steam left?

Shares of Jaiprakash Power Ventures Ltd extended their rally for the third straight session on Monday, jumping 16.84 per cent to hit a new 52-week high of Rs 27.62. The stock eventually closed 15.14 per cent higher at Rs 27.22, taking its one-month gain to an impressive 53.87 per cent.

Meanwhile, Jaiprakash Associates Ltd rose 5 per cent to settle at Rs 3.38, driven by reports suggesting the Adani Group is eyeing an acquisition of the debt-ridden company. However, Business Today has not independently confirmed these reports at the time of publishing this story.

JP Associates is currently under IRP: Stage 1, indicating that the company has entered the initial phase of the Insolvency Resolution Process under the Insolvency and Bankruptcy Code (IBC). Investors should note that stocks under IRP often face high volatility and uncertainty, as the outcome depends on the resolution plan approved by the Committee of Creditors.

From a technical standpoint, JP Power presents a different picture. The stock has now approached a crucial resistance level of Rs 27 after its recent sharp uptrend. While short-term traders may consider booking profits, some analysts suggest that investors can continue holding the stock with a trailing stop-loss at Rs 23.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher (PL), noted, "The stock has shown a strong surge, forming a bullish candle on daily charts and decisively breaking above the previous peak near Rs 24 level, supported by significant volume activity over the past week. The overall bias has turned positive, indicating strong upside potential, though a brief consolidation may occur as the RSI (Relative Strength Index (RSI) remains overheated and near the overbought zone. We see potential upside targets at Rs 31.40 and Rs 36.70 in the coming days, with Rs 24 acting as a key support from the current price."

Drumil Vithlani, Technical Research Analyst at Bonanza, observed, "JP Power is nearing its multi-year resistance zone around the 2014 highs on monthly charts. The stock has rallied sharply -- nearly 50 per cent in the July series -- signalling strong upward momentum. For short-term traders, this presents an opportunity to book profits around Rs 27 level, given its closeness to a historical resistance area. However, the broader trend remains positive. One can consider trailing the stop-loss to Rs 23 and continue holding the position, with potential upside targets of Rs 30 and Rs 33 in the coming months."

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 89.91. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The scrip has a price-to-earnings (P/E) ratio of 23.07 against a price-to-book (P/B) value of 1.55. Earnings per share (EPS) stood at 1.18 with a return on equity (RoE) of 6.76. According to Trendlyne data, JP Power has a one-year beta of 1.1, indicating high volatility.

As of March 2025, promoters held a 24 per cent stake in the company.