Sell JSW Energy, target price Rs 186: HDFC Securities

HDFC Securities has sell call on JSW Energy with a target price of Rs 186. The current market price of JSW Energy is Rs 279.9.

JSW Energy, incorporated in the year 1994, is a Mid Cap company (having a market cap of Rs 46180.85 Crore) operating in Power sector.

JSW Energy key Products/Revenue Segments include Power, Power Generation, Sale of services, Interest, Sale of Products and Other Operating Revenue for the year ending 31-Mar-2022.

Financials
For the quarter ended 30-09-2022, the company has reported a Consolidated Total Income of Rs 2596.27 Crore, down -16.66 % from last quarter Total Income of Rs 3115.33 Crore and up 16.04 % from last year same quarter Total Income of Rs 2237.36 Crore. Company has reported net profit after tax of Rs 451.73 Crore in latest quarter.

The company’s top management includes Mr.Sajjan Jindal, Mr.Prashant Jain, Mr.Pritesh Vinay, Mr.Sunil Goyal, Ms.Rupa Devi Singh, Mr.Munesh Khanna, Mr.Rajeev Sharma, Mr.Desh Deepak Verma. Company has Deloitte Haskins & Sells LLP as its auditors. As on 30-09-2022, the company has a total of 164 Crore shares outstanding.

Investment Rationale
PAT is expected to remain flat at INR3.2bn in Q3FY23 (+0.4% YoY)as its generation declined 3.8% YoY to 5.0bn. While higher realisation would offset the fall in generation, profitability is expected to be impacted by higher coal prices.

Promoter/FII Holdings
Promoters held 74.69 per cent stake in the company as of 30-Sep-2022, while FIIs owned 5.27 per cent, DIIs 0.17 per cent.