The recent regulatory uncertainty related to the group's battery project has contributed to JSW Energy's share price volatility. We note that in a regulatory setback recently, the Central Electricity Regulatory Commission declined to adopt the proposed tariff for the 500MW battery energy storage project contracted with the Solar Energy Corporation of India Ltd.
NDTV Profit's special research section collates quality and in-depth equity and economy research reports from across India's top brokerages, asset managers and research agencies. These reports offer NDTV Profit's subscribers an opportunity to expand their understanding of companies, sectors and the economy.
Motilal Oswal Report
JSW Energy Ltd.'s share price has corrected ~18% over the past month amid a wider sell-off in the power utility space, which is likely attributable to the slower growth in power demand for Q3 FY25.
Regulatory uncertainty related to the battery storage project has also weighed on the stock. Consequently, we cut our FY26/27E Ebitda by 3%/4% as we:
remove earnings contribution from the 500MW battery energy storage project and
include earnings contribution from the acquisition of 125MW RE capacity from the Hetero Group.
We also do not ascribe any value to the battery storage project in our SoTP valuation now. Reiterate Buy with a revised SoTP-based target price of Rs 790.
Click on the attachment to read the full report:
DISCLAIMER
This report is authored by an external party. NDTV Profit does not vouch for the accuracy of its contents nor is responsible for them in any way. The contents of this section do not constitute investment advice. For that you must always consult an expert based on your individual needs. The views expressed in the report are that of the author entity and do not represent the views of NDTV Profit.
Users have no license to copy, modify, or distribute the content without permission of the Original Owner.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
