Hold JSW Energy, target price Rs 270: JM Financial

JM Financial has hold call on JSW Energy with a target price of Rs 270. The current market price of JSW Energy is Rs 222.75.

JSW Energy, incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 36372.00 Crore) operating in Power sector.

JSW Energy key Products/Revenue Segments include Power, Power Generation, Sale of services, Interest, Sale of Products and Other Operating Revenue for the year ending 31-Mar-2022.


Financials
For the quarter ended 31-12-2022, the company has reported a Consolidated Total Income of Rs 2349.73 Crore, down -9.50 % from last quarter Total Income of Rs 2596.27 Crore and up 18.41 % from last year same quarter Total Income of Rs 1984.34 Crore. Company has reported net profit after tax of Rs 169.70 Crore in latest quarter.

The company’s top management includes Mr.Sajjan Jindal, Mr.Prashant Jain, Mr.Pritesh Vinay, Mr.Sunil Goyal, Ms.Rupa Devi Singh, Mr.Munesh Khanna, Mr.Rajeev Sharma, Mr.Desh Deepak Verma. Company has Deloitte Haskins & Sells LLP as its auditors. As on 31-12-2022, the company has a total of 164 Crore shares outstanding.

Investment Rationale
The merchant capacities at JSW Energy, viz., 522MW out of 860MW Toranagallu PowerStation, Vijayanagar (9MFY23 PLF 49%) and 105MW at 1,200 MW Ratnagiri Power Station(9MFY23 PLF 55%) will be the beneficiaries of likely increase in volume and prices at the power exchange. The brokerage expects the annual average PLF to stabilize at ~45% post witnessing a sharp spike during the months of April/May.