CMP: ₹709.90
JSW Power reported flat income of ₹2,900 crore in Q1, led by decrease gas prices, that are typically pass-through in nature. EBITDA grew a sturdy 16 per cent y-o-y to ₹1,400 crore, led by incremental contribution from Ind Barath plant (350MW), new natural renewable capacities and improved technology from hydro vegetation.
Energy technology remained buoyant for JSW’s energy vegetation in Q1. Web technology rose 18 per cent y-o-y to 7.9BUs, led by greater technology at hydro and thermal vegetation, and capability addition in wind vegetation. Whereas hydro technology was flat on the nationwide stage, technology from JSW’s vegetation rose 61 per cent y-o-y to 1,840MU.
JSW has locked in capability of 15.5GW. Previously six months, it constructed a undertaking pipeline of 5.7GW. Of the overall ‘underneath building’ initiatives, it has energy buy agreements for 2GW value of initiatives and is within the means of signing PPAs for different initiatives. It’s on observe to realize 10GW put in capability in FY25.
Whereas capability addition plans and undertaking execution look promising, all positives are already captured within the CMP (at 31.6x FY27E P/E and 15x FY27E EV/EBITDA). Keep Promote given costly valuations. We pare FY25E/26E estimates 6/1.3 per cent respectively factoring in decrease PLF for Ind Barath plant and introduce FY27 earnings. We increase our TP to ₹483 (from ₹420).
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