JSW Energy Gets 'Buy' From ICICI Securities With Upgrade In Target Price, On O2 Power Acquisition

ICICI Securities Report

JSW Energy Ltd. has been shifting gears towards renewable energy over the last couple of years, as is evidenced by their locked-in RE portfolio of 15.3 giga watt at end-Q2 FY25 (versus H2 FY23’s 6GW). It has emerged as the H1 bidder for O2 Power at a deal value of Rs 125 billion.

O2 Power, founded in 2020, is an RE generation platform backed by EQT and Temasek. It has an operational portfolio of over 1.2GW and a total locked-in portfolio of 4.7GW.

This brings JSW Energy’s locked-in portfolio to 20.4GW (including NTPC’s 400MW solar project LoA announced recently) and locked-in Ebitda to Rs 147.5 billion (JSW Energy: Rs 110 billion; O2 Power: Rs 37.5 billion).

Further, O2 Power has a C&I play of 0.6GW, adding to JSW Energy’s own 3.7GW C&I portfolio. Thus, we upgrade the stock to Buy with a target price of Rs 720 per share.

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