JPPOWER - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | JPPOWER | Market Cap | 13,515 Cr. | Current Price | 19.7 ₹ | High / Low | 27.7 ₹ |
| Stock P/E | 21.8 | Book Value | 18.6 ₹ | Dividend Yield | 0.00 % | ROCE | 10.2 % |
| ROE | 6.83 % | Face Value | 10.0 ₹ | DMA 50 | 17.0 ₹ | DMA 200 | 17.0 ₹ |
| Chg in FII Hold | 0.07 % | Chg in DII Hold | 0.00 % | PAT Qtr | 4.89 Cr. | PAT Prev Qtr | 182 Cr. |
| RSI | 64.9 | MACD | 1.25 | Volume | 9,22,77,620 | Avg Vol 1Wk | 12,78,28,177 |
| Low price | 12.5 ₹ | High price | 27.7 ₹ | PEG Ratio | 0.23 | Debt to equity | 0.28 |
| 52w Index | 47.4 % | Qtr Profit Var | -96.1 % | EPS | 0.91 ₹ | Industry PE | 31.0 |
Financials: JP Power shows weak fundamentals with ROCE at 10.2% and ROE at 6.83%. EPS of ₹0.91 is modest, while quarterly PAT dropped sharply to ₹4.89 Cr. from ₹182 Cr. Debt-to-equity ratio of 0.28 indicates manageable leverage.
Valuation: P/E of 21.8 is below industry average (31.0), suggesting relative undervaluation. PEG ratio of 0.23 highlights attractive growth-adjusted valuation. Dividend yield is nil, limiting income appeal.
Business Model: JP Power operates in the power sector with exposure to thermal and hydro projects. Competitive advantage lies in diversified generation, but profitability remains volatile.
Entry Zone: Attractive entry between ₹18–₹20 near DMA 50 and DMA 200 (₹17). Long-term holding requires monitoring earnings recovery and sector demand.
Positive
- PEG ratio of 0.23 indicates undervaluation with growth potential
- Debt-to-equity ratio of 0.28 reflects manageable leverage
- FII holdings increased slightly (+0.07%)
- Strong 52-week index gain (+47.4%) shows price momentum
Limitation
- EPS of ₹0.91 reflects weak profitability
- ROE (6.83%) and ROCE (10.2%) are modest compared to peers
- Dividend yield of 0.00% offers no income support
- Quarterly PAT collapsed from ₹182 Cr. to ₹4.89 Cr.
Company Negative News
- Sharp decline in quarterly profits (-96.1%)
- Earnings volatility raises investor concerns
Company Positive News
- Technical indicators (RSI 64.9, MACD 1.25) show bullish bias
- Strong 52-week performance supports investor sentiment
Industry
- Power sector trades at higher P/E (31.0), making JP Power relatively undervalued
- Sector outlook remains positive with infrastructure demand
Conclusion
JP Power presents weak fundamentals with volatile earnings but trades at undervaluation relative to peers. Entry around ₹18–₹20 offers speculative opportunity. Long-term holding requires cautious monitoring of profitability recovery and sector execution.
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