This multibagger stock has surged over 410% this year. Should you hold/sell?
From trading around ₹58 per share level, the multibagger stock currently hovers around ₹345 apiece
Shares of JSW Energy have given multibagger return so far this year as the stock has surged more than 410% in 2021 (year-to-date or YTD). From trading around ₹58 per share level, the multibagger stock currently hovers around ₹345 apiece, surging a whopping over 485% in a year's period.
For the quarter ended September, JSW Energy on Friday reported a 3.7% dip in its consolidated net profit to ₹339 crore for the September 2021 quarter. The total revenue increased 12% year-on-year to ₹2,237 crore, primarily due to an increase in short-term sales and higher other income.
Brokerage firm ICICI Securities has a Sell rating on the stock with a revised target price of ₹150 per share (from ₹130 earlier). “Although it has a strong track record of efficient commissioning and operations of assets, competition remains steep," the brokerage note stated.
Commissioning of under-construction RE projects will be in parts starting with 225MW solar in Q4FY22. This, as per the brokerage, will aid the company transition from a majority coal to a majority green player. JSW Energy is expected to take a decision on reorganising its green and grey businesses in the next few months.
The note further highlighted that the company has placed orders for solar modules and wind turbines for its various under-construction RE projects. It has already started receiving the solar modules and installation work is underway. It is aggressively tying up resources, particularly land, and has also signed an MoU with the Government of Maharashtra for resources for 5GW wind and 1.5GW hydro pumped storage projects.
“We maintain SELL on the stock but increase our target price to Rs150 (earlier: Rs130) as we roll over to FY24E and incorporate higher cash and investments. We await the company’s decision on reorganisation," ICICI Securities said.
The views and recommendations made above are those of individual analysts or broking companies, and not of Mint.
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