JSW Energy Share Price Snaps Eight-Session Fall On Approval Of Resolution Plan For KSK Mahanadi Power

JSW Energy shares snapped an eight-session losing streak and bounced back on Tuesday, after the committee of creditors approved its resolution plan for KSK Mahanadi Power Co.

KMPCL owns a 3,600-MW thermal power plant in Chhattisgarh, the company said in an exchange filing, and added that currently 1,800 MW (600 MW x 3 units) is operational, with 95% of its capacity tied up in long and medium-term power purchase agreements.

"An additional 1,800 MW (600 MW x 3 units) is under construction, out of which one unit (600 MW) is 40% completed and the balance of plant is in place for the remaining 1,200 MW," it said. The plant has water and coal transportation arrangements for the entire 3,600 MW.

Subsequent to this, the company's total locked in thermal generation capacity stands at 7.5 GW and the total locked in generation capacity stands at 28.2 GW, it said. This positions JSW Energy to achieve its target of 20 GW before 2030. It is committed to a net zero target by 2050, the company said.

The scrip rose as much as 6% to Rs 548.95 apiece. It pared gains to trade 5.9% higher at Rs 547.90 apiece, as of 10:57 a.m. This compares to a 0.5% advance in the NSE Nifty 50.

It has risen 8.8% in the last 12 months. Total traded volume so far in the day stood at 0.96 times its 30-day average. The relative strength index was at 30.31, 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 26.5%.