⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
JSWENERGY - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.3
| Stock Code | JSWENERGY | Market Cap | 89,473 Cr. | Current Price | 509 ₹ | High / Low | 579 ₹ |
| Stock P/E | 99.5 | Book Value | 130 ₹ | Dividend Yield | 0.39 % | ROCE | 5.82 % |
| ROE | 6.24 % | Face Value | 10.0 ₹ | DMA 50 | 488 ₹ | DMA 200 | 506 ₹ |
| Chg in FII Hold | -2.62 % | Chg in DII Hold | 2.83 % | PAT Qtr | 82.7 Cr. | PAT Prev Qtr | 190 Cr. |
| RSI | 58.8 | MACD | 7.19 | Volume | 30,86,540 | Avg Vol 1Wk | 68,08,816 |
| Low price | 428 ₹ | High price | 579 ₹ | PEG Ratio | 3.64 | Debt to equity | 0.61 |
| 52w Index | 53.7 % | Qtr Profit Var | -61.9 % | EPS | 5.04 ₹ | Industry PE | 30.0 |
📊 Core Financials
- Revenue Growth: PAT dropped sharply (₹82.7 Cr vs ₹190 Cr)
- Profit Margins: Weak with ROE at 6.24% and ROCE at 5.82%
- Debt Ratios: Debt-to-Equity at 0.61, moderate leverage
- Cash Flows: Dividend yield of 0.39% is minimal
- Return Metrics: Efficiency below industry peers
💹 Valuation Indicators
- P/E Ratio: 99.5 (far above industry average of 30, highly overvalued)
- P/B Ratio: ~3.9 (Price ₹509 / Book Value ₹130)
- PEG Ratio: 3.64 (high, suggests growth premium priced in)
- Intrinsic Value: Appears stretched given weak profitability
🏢 Business Model & Competitive Advantage
- Operates in power generation and renewable energy under JSW Group
- Competitive advantage lies in group backing and diversification into renewables
- Weak profitability metrics limit sustainability despite scale
📈 Entry Zone Recommendation
- Current Price: ₹509
- Support Zone: ₹428 – ₹460 (near 52-week low, RSI at 58.8 indicates neutral momentum)
- Long-term Holding: Risky due to high valuation and weak returns; suitable only for aggressive investors betting on renewable energy growth
✅ Positive
- Part of JSW Group, strong brand and backing
- DII holdings increased (+2.83%), showing domestic investor confidence
- MACD positive (7.19) indicates short-term recovery momentum
⚠️ Limitation
- ROE and ROCE are weak compared to peers
- P/E ratio significantly above industry average
- Dividend yield is negligible
📉 Company Negative News
- Quarterly PAT fell sharply (₹82.7 Cr vs ₹190 Cr)
- FII holdings decreased (-2.62%), showing reduced foreign investor confidence
📈 Company Positive News
- Strong institutional support from domestic investors (DII +2.83%)
- Renewable energy expansion provides long-term growth potential
🌐 Industry
- Energy sector transitioning toward renewables, offering growth opportunities
- Industry P/E at 30 highlights JSWENERGY trading at a steep premium
🔎 Conclusion
JSWENERGY shows potential in renewable energy expansion but faces challenges with weak profitability and stretched valuations. Entry around ₹428–₹460 may provide a safer margin for speculative investors. Long-term holding requires caution until earnings stabilize and returns improve, though group backing and renewable focus provide strategic strength.