Motilal Oswal 's research report on JSW Energy
JSW Energy's (JSWE) 2QFY21 results reflect the impact of lower merchant sales volumes on the back of drop in power demand and merchant prices. However, this was partly offset by operational efficiency measures. At consolidated level, EBITDA was down 1% YoY to INR9.2b. Net debt (excl. acceptances) continued reducing (by ~INR8.2b during the quarter). Interest cost has also decreased 24% YoY. Further, FCF generation is expected to be robust as ~80% of JSWE's capacity is under long-term PPAs. Maintain Buy with TP of INR73/share.
Outlook
Maintain Buy and raise our TP to INR73/share (earlier INR64/share), broadly led by higher value of its stake in JSW Steel.
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