Buy JSW Energy, target price Rs 810: Motilal Oswal Financial Services
buy call on JSW Energy with a target price of Rs 810. The current market price of JSW Energy is Rs 657.05. JSW Energy, incorporated in 1994, is a Mid Cap company with a market cap of Rs 114898.30 crore, operating in the Power sector.
JSW Energy, 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.
Investment Rationale
Motilal Oswal Financial Services values JSWE's core business at 15x FY27 EBITDA, reflecting its strong operational performance and market position. The stake in JSW Steel is valued at a 25% discount to the current market price. JSWE is currently trading at FY27 EV/EBITDA of 14.2x. The total equity value of JSWE was determined by aggregating the values from these different components, leading to a target price of Rs 810/share. Additionally, note that we see an option value of Rs 60/share from KSK Mahanadi, which should materialize once the deal is approved.
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