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Buy JSW Energy; target of Rs 65: Motilal Oswal

Motilal Oswal is bullish on JSW Energy recommended buy rating on the stock with a target price of Rs 65 in its research report dated August 01, 2020.

August 07, 2020 / 03:20 PM IST

Motilal Oswal 's research report on JSW Energy

JSW Energy (JSWE)'s results reflected the impact of lower merchant sales volumes due to lower power demand and merchant prices. At a consolidated level, EBITDA was down 8% YoY to INR7.5b. Debt reduction continues, with net debt (incl. acceptances) declining ~INR1.6b during the quarter. Interest cost also decreased by 11% YoY. Furthermore, FCF generation would continue to be strong given ~80% of JSWE's capacity is under long-term PPAs. Maintain Buy, with TP of INR65/sh.

Outlook

Furthermore, these tied-up PPAs contribute ~95% to the company's EBITDA. Maintain Buy, with TP of INR65/sh.

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first published: Aug 7, 2020 01:47 pm