JSWENERGY - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Fundamental Rating: 3.3

Here’s a comprehensive evaluation of JSW Energy (JSWENERGY), capturing its financial essence and long-term story ⚡

🧾 Core Financials Overview

Profitability

ROE (7.41%) and ROCE (6.49%) are modest, signaling relatively low capital efficiency.

EPS of ₹11.2 is reasonable but not exceptional in supporting high valuations.

Quarterly Performance

PAT increased sharply from ₹157 Cr. to ₹408 Cr., indicating possible turnaround or one-off gains.

Qtr Profit Variation of 18.2% supports the narrative of improving fundamentals—but consistency will be key.

Leverage

Debt-to-equity of 1.83 highlights elevated financial leverage—a concern in interest rate upcycles or volatile earnings periods.

Dividend

0.38% yield is modest—JSW Energy likely reinvests earnings more aggressively than distributing them.

📊 Valuation Metrics

Metric Value Implication

P/E Ratio 51.5 Rich compared to industry average (41.2)

P/B Ratio ~3.34 Implies premium valuation

PEG Ratio 28.9 🚨 Very high—suggests stretched expectations

📉 JSW Energy seems significantly overvalued based on PEG and sector-relative metrics. Market may be pricing in future renewable gains.

🧠 Business Model & Competitive Landscape

JSW Energy is diversifying aggressively into renewables, EV-related infrastructure, and energy storage—long-term positives.

The company is pivoting from traditional thermal assets to more sustainable energy projects, which could enhance its ESG appeal and regulatory favorability.

DII Holdings increased (+0.49%), while FII decreased (-1.07%)—domestic investors seem more optimistic than foreign counterparts.

📍 Entry Zone & Technical Read

Current Price: ₹525, near DMA-50 (₹517), and below DMA-200 (₹543)—a neutral technical setup.

RSI 52.4 and MACD 3.66 — suggest consolidation phase.

📌 Recommended Entry Zone

May consider entries around ₹500–₹510 for long-term accumulation, ideally after confirming stability or MACD crossover.

For deeper value, a pullback towards ₹470–₹480 could offer better risk-reward if broader market corrects.

⏳ Long-Term Holding Outlook

The company’s shift to renewables is a long-duration theme—positive but capital-intensive.

Valuation remains a concern; investors should monitor earnings consistency and debt management.

Best held with a multi-year horizon, and ideally accumulated during market dips or sector corrections.

Want a side-by-side snapshot of JSW Energy against Adani Green or Tata Power? That could really illuminate where value (and risk) lies 🔍.

Edit in a page