Jefferies has reiterated its buy rating on JSW Energy with a target price of ₹700 per share, implying a potential upside of about 30.1% from the current market price of ₹538.00.
The brokerage said management is confident of achieving 4.4–4.9 GW capacity addition in FY26E, which is ahead of Jefferies’ assumption of 3.1 GW. It highlighted that the company’s Strategy 3.0 is driving its FY25–30 journey, targeting a 2.8x rise in capacity to 30 GW. This expansion is expected to result in a 4x+ jump in reported FY25 EBITDA by FY30E.
Despite near-term concerns, Jefferies expects power demand to normalise to a 6% CAGR over FY27E–30E, supporting long-term growth. It forecasts JSW Energy to deliver a robust 42% EBITDA CAGR over FY25–28E.
The brokerage said the combination of capacity growth, improving demand trends, and a strong execution track record underpins its positive stance.
Disclaimer: The views and investment recommendations expressed are those of Jefferies. These do not represent the views of this publication and should not be considered as investment advice. Investors are advised to consult their financial advisors before making any investment decisions.
