JSW Energy shares rise nearly 6% as Morgan Stanley remains 'overweight'

The power generation company’s strong market share gains in recent bids, achieved at reasonable prices, is one of the key factors pertaining to the positive outlook of the company. Furthermore, Morgan Stanley anticipates a huge EBITDA Compound Annual Growth Rate (CAGR) of 24% for JSW Energy over the FY24-28E period.

Additionally, the company's renewable energy segment is expected to play a major role in this growth, with its earnings before interest, taxes, depreciation and amortization (EBITDA) projected to rise by 52%.

JSW Energy is also expanding its green energy business, investing in storage assets, and growing its thermal segment through acquisitions.

The Sajjan Jindal-led company, JSW Energy reported a 27% year-on-year (y-o-y) decline in its consolidated net profit for the third quarter amid lower revenues from thermal and hydropower plants. The company’s profit declined to ₹168 crore in the three months ended December 31, 2024, the company said in a BSE filing on January 28. Moreover, EBITDA decreased 9% to ₹1,115 crore from ₹1,229 crore a year earlier. The EBITDA margin was 42.2% compared to 46.2% during the same quarter last year.

As of Q3FY25, JSW Energy's total operational capacity stands at 8.1 GW, with a locked-in capacity of 28.3 GW. The company currently has 6714 MW of capacity under the pipeline. Out of this, 1848 MW of capacity will be operational by FY25.

The company also re-appointed Rajiv Sharma as an independent director of the company for a second term of five consecutive years with effect from March 24, 2025.