JSW Energy shares rise 7% as Morgan Stanley remains 'overweight', 16% upside seen

JSW Energy shares are trading 42 percent lower to its all-time high of Rs 809.

Shares of JSW Energy rallied as much as 7.6 percent to Rs 504 in morning deals on February 21, extending gains for a fourth session in a row, after the international brokerage Morgan Stanley maintained its 'overweight' rating on the stock and assigned a price target of Rs 545.

The price target given by the analysts implies an upside potential of 16.5 percent from the last close of Rs 468 on the National Stock Exchange (NSE). JSW Energy's stock price has had a tough start to the year, falling 27 percent since the beginning of 2025.

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The analysts are bullish on its well-integrated business model and strong position in India's energy transition and security. The company is expanding its green energy business, investing in storage assets, and growing its thermal segment through acquisitions. It has gained market share in recent bids at competitive tariffs. Morgan Stanley forecasts a 24 percent EBITDA CAGR over FY24-28, with renewable energy EBITDA expected to grow at a 52 percent CAGR.

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JSW Energy, a private power producer and a part of the JSW Group, reported a 27 percent year-on-year decline in consolidated net profit for the third quarter owing to lower revenues from thermal and hydropower plants. Profit declined to Rs 168 crore in the three months ended December 31, 2024, the Sajjan Jindal-led company said in a BSE filing on January 28. JSW Energy posted a profit of Rs 231 crore in the corresponding quarter last year.

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Revenue declined to Rs 2640 crore in Q3 (FY25) from Rs 2661 crore a year earlier. The company said this was because incremental sales from renewable capacity addition and Utkal Unit -1 were offset by lower short-term realisation at Ratnagiri and Vijayanagar plants.

At about 9:20 am, shares of the company were trading at Rs 498, higher by 6.4 percent from the last close on the NSE. JSW Energy shares are trading 42 percent lower to its all-time high of Rs 809.

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