JSW Energy shares rise as Jefferies maintains buy; sees 39% upside

JSW Energy shares are down 22 percent since the beginning of the year.

Shares of JSW Energy gained over a percent to Rs 513 in morning trade on June 25 after Jefferies maintained its buy rating on the counter, citing strong levers for growth in the coming quarters.

With a target price of Rs 700 per share, the international brokerage anticipates an upside potential of 39 percent from the last closing price of Rs 505 on the NSE. The brokerage believes the company's ‘Strategy 3.0’ will fuel a fourfold jump in reported EBITDA between FY25 and FY30.

Excluding its investment in JSW Steel, the company reported a return on equity (RoE) of 11 percent in FY25, compared to the headline figure of 8 percent. Jefferies also flagged the company’s 58 percent EBITDA CAGR between FY25 and FY27 and an expected 2.1x jump in FY26 EBITDA as critical triggers for the stock.

Last week,  NCLAT overturned an earlier NCLT order, allowing lenders of Raigarh Champa Rail Infrastructure Pvt Ltd (RCRIPL) to invite fresh bids—a move that cleared the way for JSW Energy to enter the fray. The company had sought to participate in RCRIPL's insolvency process after acquiring KSK Mahanadi Power, its parent firm, for Rs 16,084 crore in March. Backing the lenders’ decision, the tribunal said reissuing Form G to call for fresh bids would boost competition and likely attract better offers.

JSW Energy shares are down 22 percent since the beginning of the year.