Following Morgan Stanley’s positive outlook, highlighting significant market share increases and renewable energy’s rise, JSW Energy jumps 4.8%. Investor opinion is still optimistic about long-term prospects despite the Q3 earnings dip.
JSW Energy Q3 Earnings:
On February 21, JSW Energy’s stock surged 4.8% during intraday trading, peaking at Rs 490.95 on the BSE. Morgan Stanley started coverage with a “weight” rating and a target price of Rs 545, which sparked the stock’s surge. The company’s market share gains, which were attained at competitive rates, and its strong development prospects in the energy sector are the main drivers of the brokerage firm’s optimistic outlook.
For the FY24–28E period, Morgan Stanley projects that JSW Energy’s EBITDA Compound Annual Growth Rate (CAGR) would be 24%. The company’s renewable energy division is anticipated to be a major contributor to this expansion, with EBITDA set to rise at an astounding 52% CAGR. The company’s optimistic assessment shows faith in JSW Energy’s capacity to benefit from the industry’s shift to sustainability.
JSW Energy’s financial results for the third quarter of FY24 showed considerable challenges despite the optimistic market attitude. Under Sajjan Jindal’s leadership, the company’s consolidated net profit dropped 32% to Rs 157 crore from Rs 232 crore in the same period the previous year.
The quarter’s revenue of Rs 2,640 crore represented a 1% year-over-year decline from Rs 2,661 crore during the previous year. At Rs 1,115 crore, the company’s profits before interest, taxes, and depreciation decreased by 9%. Despite an overall rise in electricity generation, this drop was mainly ascribed to fewer short-term sales contributions.
The stock movement of JSW Energy has fluctuated throughout time. The stock has increased by just 0.33 percent in the last year. However, its year-to-date (YTD) performance indicates a steep drop of 24.41%. In the previous six months, the stock also experienced a significant decline of 32.41%; in the last three months, it fell by 30.32%.
Morgan Stanley’s optimistic outlook has rekindled investor confidence despite recent underperformance. Many anticipate the company’s emphasis on renewable energy will create long-term wealth.
