The analyst advised accumulating on dips around ₹505–₹506 with a stop loss at ₹495.
JSW Energy has traded in a range over the past two sessions, with the stock showing signs of buying interest near the ₹500 level, SEBI-registered analyst Deepak Pal.
At the time of writing, JSW Energy shares were trading at ₹504.4, down 1.7% on the day.
Pal said the stock was currently finding support near its 55-day exponential moving average (EMA) and was hovering around the 14-day EMA.
He said ₹515 was acting as an immediate resistance level.
The analyst also mentioned that repeated testing of the ₹515 zone and a broadly positive market sentiment could result in a breakout.
If the momentum continues, the stock may move toward the ₹530–₹535 range in the short term.
He recommended buying JSW Energy around ₹505–₹506, with a stop loss at ₹495 and a target of ₹530.
On the fundamentals, Pal pointed to earnings growth, a shift in asset mix toward renewable energy, strong margins, and solid cash flow.
He said the company reported a fourth-quarter (Q4) profit after tax of ₹408 crore and revenue of ₹3,189 crore, both up 16% year-over-year.
Pal added that JSW Energy’s total capacity stood at approximately 8.4 GW, including a recent addition of 281 MW in renewable assets.
He said the company has set a target of reaching 20 GW by 2030.
He also highlighted the core profit margin for FY24 at around 47%, and stated that growth in wind and solar segments was contributing to operational efficiency.
The analyst said the company’s debt-to-equity ratio was around 1.09, with net debt to EBITDA at about 4.5 times, and liquidity of ₹6,600 crore.
He said the stock was trading at approximately 52 times earnings and indicated a long-term view with a potential target range of ₹575–₹600.
On Stocktwits, retail sentiment was ‘bearish’ amid ‘normal’ message volume.
The stock has declined 21.6% so far in 2025.
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