JSW Energy share price more than doubled investors’ money in 1 year; should you buy stock after the Q4 result?

JSW Energy share price rose nearly 6 per cent in early deals on BSE on Wednesday, May 8, a day after the company reported its March quarter results, reporting a healthy year-on-year (YoY) rise in revenue and profit. JSW Energy share price opened at ₹594.85 against its previous close of ₹583.85 and soon jumped nearly 6 per cent to the level of ₹618. 

However, the stock witnessed mild volatility thereafter and pared significant gains soon. Around 10 am, JSW Energy share price traded 1 per cent higher at ₹590 apiece on BSE. Equity benchmark Sensex was 0.33 per cent down at 73,269 at that time.

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JSW Energy share price trend

Over the past year, the share price of JSW Energy has surged by an impressive 125 per cent, doubling investors' wealth. The stock reached its 52-week high of ₹651.55 on April 22 this year and saw some profit booking thereafter. For the month of May so far, the stock is down nearly 7 per cent.

On the monthly scale, the stock has been in the green since November 2023, and if it closes in the red in May, it will snap its last six consecutive months' winning streak.

JSW Energy share price hit its 52-week low of 240 on BSE on May 24 last year.

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JSW Energy Q4 result

The Sajjan Jindal-led firm on Tuesday, May 7, posted a 29 per cent YoY rise in its Q4FY24 consolidated net profit to ₹351 crore against a consolidated net profit of ₹272 crore in the same quarter of financial year 2023.

Total revenue in Q4FY24 increased by 3 per cent YoY to ₹2,879 crore from ₹2,806 crore in Q4FY23.

For the financial year 2024 (FY24), the company's profit after tax increased by 17 per cent YoY to ₹1,723 crore compared to ₹1,478 crore in FY23 while total revenue increased 10 per cent YoY to ₹11,941 crore from ₹10,867 crore in FY23.

The company's board recommended a dividend of ₹2 per equity share of ₹10.

The company said its board also approved the raising of funds not exceeding ₹10,000 crore in one or more tranches, through the issuance of securities of the company by way of private offerings or on a preferential allotment basis or a qualified institutional placement or any other method or combination thereof.

Also Read: Q4 results: JSW Energy profit rises 29% to ₹351 crore, declares ₹2 per share dividend

Should you buy the stock?

Brokerage firms have largely maintained their earlier mixed views on the stock after the company's Q4 result. Some of them, however, have raised their target price for the stock.

Brokerage firm JM Financial retained a buy call on the stock after the March quarter results and raised the target price to ₹648 from ₹555 earlier.

JM Financial is positive about the company's growth prospects and believes it is on track to achieve its target of 10GW and 20GW renewable energy capacity by 2025 and 2030, respectively.

"JSW Energy added/secured greenfield RE capacity of 681MW/3.4GW during FY24 taking RE locked-in capacity to 13.2 GW along with SECI’s 250MW/500MWh BESS project. It is also securing the wind energy supply chain with the signing of a technology licensing agreement with SANY Renewable Energy, China. We believe the company is right on track to achieve its target of 10GW/20GW RE capacity by 2025/2030," said JM Financial.

Kotak Institutional Equities has maintained a 'sell' call on the stock after the Q4 result but revised the fair value to ₹275 against ₹235 earlier.

"JSW Energy continues to focus on an aggressive growth path, with investments in new thermal and renewable assets, as well as storage solutions. While the plans and execution are encouraging, we believe all positives are captured in the current market price at 31 times FY26E EPS and 3 times P/B," Kotak said.

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