ICICI Securities Maintains Buy Call on JSW Energy, Sets Price Target of Rs 700
JSW Energy Sees Ambitious Growth Targets
JSW Energy (JSWE) has built a diverse portfolio, spanning generation and energy storage. The company has set an ambitious target of 30GW generation + 40GWh energy storage capacity by 2030. Its operational capacity has scaled up 1.6 times over the last 15 months.
Despite a slower-than-expected organic RE capacity addition trajectory, JSWE is optimistic about adding 3-3.5GW annually, which is worth 21-24% of FY26 EBITDA. Additionally, the company has approximately 5GW of thermal capacity under development, which is expected to come online incrementally from H2FY28 onwards.
Over the last 4-5 quarters, JSWE has taken several steps to de-risk its portfolio from an execution and long-term operating perspective. The company has been securing power purchase agreements (PPAs) for its new coal-based capacity and is strengthening its supply chain for the thermal, wind, and battery storage portfolio.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Key Highlights
| Metric | FY26-32E |
|---|---|
| CAGR of Operating Profit | > 22% |
| Annual Capacity Addition | 3-3.5GW |
| Thermal Capacity Under Development | ~ 5GW |
We maintain a BUY rating for JSW Energy with a SoTP-based target price of INR 700, which remains unchanged.
Investor Takeaway
Maintain a buy call on JSW Energy with a price target of Rs 700.
More in Market
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
Indian Stocks to Watch: BHEL, Agarwal Industrial, JBM Auto, Rajesh Exports, Indian Energy Exchange, Lenskart Solutions in Market Focus on June 4.
