JP Power share price crashes 8.5% after two-day rally. Is profit booking at play?

JP Power share price: Shares of Jaiprakash Power Ventures (JP Power) reversed course on Friday, November 21, after a significant rally over the last two trading sessions.

JP Power's share price fell as much as 8.5% to the day's low of ₹19.79 on the BSE, amid profit-taking and high volumes on the counter.

The scrip had surged 29% over the last two days after Adani group pipped Vedanta to win the approval of creditors of Jaiprakash Associates (JAL) for its ₹14,535-crore acquisition proposal for the bankrupt infrastructure group.

"The Committee of Creditors (COC) of Jaiprakash Associates Limited (JAL), a company undergoing Corporate Insolvency Resolution Process (CIRP) under the Insolvency and Bankruptcy Code 2016 (IBC), has approved the Resolution Plan submitted by Adani Enterprises Limited (AEL)," the Adani group company said in a stock exchange filing.

Adani got the maximum 89% votes from creditors, followed by Dalmia Cement (Bharat) and Vedanta Group, it added.

Without disclosing financial details of the bid, AEL said it has received a Letter of Intent (LOI) from the Resolution Professional (RP) on November 19, 2025.

As JAL owns around a 24% stake in JP Power, the markets anticipated that a successful resolution involving a financially strong sponsor like Adani could unlock meaningful value for JP Power’s underlying business, sparking a rally in the small-cap counter over last two days.

Nearly 1.34 crore shares of JP Power had changed hands on BSE as of 10.30 am, as against the two-week average of 1.75 crore shares.

Why are JP Power shares falling?

“The 8% slide in JP Power looks less like a structural reversal and more like the market catching its breath. The stock has rallied sharply over the past few weeks, and when a counter runs ahead of its fundamentals, profit-taking becomes almost mechanical,” opined Harshal Dasani, Business Head at INVAsset PMS.

He believes today's action signals that traders are unwinding momentum positions rather than long-term investors questioning the business. There’s also a shift in narrative — the speculative buzz that had pushed the stock higher has normalised, so the marginal buyer has stepped back, he added.

“In that sense, today’s correction is healthy. If the company delivers on operational improvements, this volatility will simply be remembered as routine consolidation after an overextended rally,” Dasani added.

JP Power Q2 Results

For the second quarter, JP Power had posted a flat profit growth at ₹182.10 crore as against ₹182.66 crore in the same period a year ago.

Total income rose to ₹1,478.49 crore from ₹1,305.19 crore in July-September 2024-25. Expenses also increased to ₹1,186.48 crore from ₹1,070.76 crore.

The small-cap stock has delivered 24% returns to investors in a year and 36% in six months. Meanwhile, it has emerged as a multibagger stock, with a 710% rise in five years, according to data available on BSE.

JP Power share price was trading at ₹20.28, down 6.24%, on the BSE around 11.05 am.

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