Shares of JSW Energy jumped 5 percent in morning trade on BSE on August 20 after global brokerage firm CLSA reiterated 'buy' call on the stock with a target price of Rs 75.
As per CNBC-TV18, CLSA said the stock is an inexpensive play on sector consolidation.
CLSA has highlighted that the company has emerged as the second preferred bidder for 810MW of Solar Energy Corporation of India's (SECI) 2.5GW wind tender.
The company has started to deliver on its new plan to double the capacity via renewable energy (RE) with an eye on profitability, CNBC-TV18 quoted CLSA saying so.
JSW Energy, one of the leading powers players, has seen a significant impact of the slowdown in power demand and lower prices on its revenue and earnings in the first quarter.
As per brokerage firm Motilal Oswal Financial Services, JSW Energy's Q1 results reflected the impact of lower merchant sales volumes due to lower power demand and merchant prices.
The brokerage has maintained a 'buy' call on the stock with a target price of Rs 65.
The brokerage highlighted that at a consolidated level, EBITDA was down 8 percent YoY to Rs 750 crore. Debt reduction continued, with net debt (including acceptances) declining about Rs 160 crore during the quarter.
Shares of JSW Energy traded 3.42 percent up at Rs 59 on BSE at 10:35 hours.Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not that of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.