Buy JSW Energy, target price Rs 744: Hem Securities

Hem Securities has a buy call on JSW Energy with a target price of Rs 744. The current market price of the stock is Rs 651.3. JSW Energy, incorporated in 1994, is a Mid Cap company with a market cap of Rs 113596.21 crore, operating in the Power sector.

JSW Energy's key products/revenue segments include Power, Power Generation, Sale of services, Sale of Products, Interest, Other Operating Revenue for the year ending 31-Mar-2024.

Financials

For the quarter ended 30-09-2024, the company has reported a Consolidated Total Income of Rs 3459.40 crore, up 13.70% from last quarter Total Income of Rs 3042.66 crore and up 2.13% from last year same quarter Total Income of Rs 3387.36 crore. The company has reported net profit after tax of Rs 868.34 crore in latest quarter.

The company's top management includes Mr.Sajjan Jindal, Mr.Desh Deepak Verma, Mr.Rajeev Sharma, Mr.Munesh Khanna, Mr.Sunil Goyal, Ms.Rupa Devi Singh, Mr.Pritesh Vinay, Mr.Parth Jindal, Mr.Ashok Ramachandran, Mr.Sharad Mahendra, Mr.Rajiv J Chaudhri. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2024, the company has a total of 175 Crore shares outstanding.

Investment Rationale
JSW Energy is driven by its strategic focus on renewable energy expansion, robust pipeline of under-construction projects, significant advancements in energy storage and green hydrogen, and disciplined financial management, positioning it well for long-term growth amid India's energy transition. Hem Securities reiterates a BUY rating on the stock and values the stock at 45x FY26E earnings to arrive at the target of Rs 744.

Promoter/FII Holdings
Promoters held 69.32 per cent stake in the company as of 30-Sep-2024, while FIIs owned 14.92 per cent, DIIs 9.7 per cent.