Jefferies, the foreign brokerage firm, has reiterated its ‘buy’ rating for JSW Energy and increased the target price to Rs 500 per share. This move signifies Jefferies’ strong belief in the company’s growth potential and its ability to offer substantial returns to investors.
As of 9:36 am, JSW Energy’s shares were trading 2.35% higher at Rs 403.20 on the BSE.
Jefferies has pinpointed three significant catalysts expected to unfold over the next 12-24 months, which will have a profound impact on JSW Energy’s standing in the market. First and foremost, there is a noticeable enhancement in visibility as the company’s renewable energy capacity is slated to rise from 52% in FY23 to an impressive 81% by FY30. Second, the commissioning of a 700-MW merchant capacity comes at a critical juncture when peak power deficits are a cause for concern, further solidifying the company’s role in meeting India’s energy requirements.
Lastly, JSW Energy’s strides in developing one of India’s initial green hydrogen plants and an energy storage battery unit underscore its dedication to sustainability and innovation. These advancements have led the brokerage house to project a robust 41% compound annual growth rate (CAGR) for earnings per share (EPS) from fiscal year 2024 to 2026.
Just last week, JSW Energy shares witnessed a surge following reports that private equity investors TPG, Tokyo Electric Power Company (Tepco), and Brookfield were engaged in discussions to acquire a stake in JSW Neo Energy.
The trio of private equity firms intends to acquire a minority stake in JSW Neo Energy, a subsidiary of the publicly-listed JSW Energy, according to a newspaper report. It is anticipated that deals with two of these investment funds will be finalized in the coming weeks. The JSW Group aims to generate up to $500 million from this stake sale, with the proceeds likely to be used to expand its presence in the renewable energy sector.
Investors and industry enthusiasts are closely monitoring JSW Energy’s promising trajectory as it aligns itself with the evolving landscape of India’s energy sector.
