JSW Energy Shares Hit Lowest Since March On Disappointing Q3 Earnings

JSW Energy share price fell to hit a 10-month-low on Wednesday following weak performance in the quarter ended December. The company reported a net profit decline of 27.4% compared to the same quarter last year.

The bottom-line came in at Rs 168 crore against the Rs 347-crore consensus estimate of Bloomberg analysts.

On Tuesday, the company also announced raising of long term funds up to Rs. 3,000 crores through, inter-alia, the issuance of rated and listed non-convertible debentures on a private placement basis.

In a large trade today, 15.4 lakh shares changed hands in the stock at Rs 458.25, according to Cogencis.

During the quarter,despite JSW Energy's net generation increased 10% year on year to 6751 million units, the company's revenues decreased as the incremental sales from renewable capacity additions were offset by lower short-term realisations at Ratnagiri and Vijayanagar.

Revenue was down 4.1% to Rs 2,438 crore against Rs 2,958 crore estimated and Ebitda fell 18% to Rs 912.85 crore compared to Bloomberg estimated Rs 1,303 crore.

The stock fell as much as 10%, its lower circuit limit, and hit a low of Rs 453.60, its lowest since March 14. It pared losses to trade 7% lower at Rs 469.25 apiece, as of 10:11 a.m. This compares to a 0.5% decline in the NSE Nifty 50 Index.

It has fallen 27% on a year-to-date basis. Total traded volume so far in the day stood at 2.97 times its 30-day average. The relative strength index was at 21.8, indicating that the stock may be oversold.

Out of 12 analysts tracking the company, seven maintain a 'buy' rating, three recommend a 'hold,' and two suggest 'sell,' according to Bloomberg data. The average 12-month consensus price target implies an upside of 42.5%.