Jefferies has maintained a ‘Buy’ rating on JSW Energy, raising its target price to ₹700, implying a 35% upside potential from the current market price of ₹519.00. The brokerage addressed key investor concerns regarding weak power demand, lower merchant prices, and rising debt levels post-acquisitions, stating that recent acquisitions are value-accretive.
JSW Energy has factored in its O2 and KSK Mahanadi acquisitions, which were secured at a valuation of less than 10x EV/EBITDA, making them strategically beneficial. Jefferies continues to value JSW Energy at 15x EV/EBITDA for FY27E, which is at the lower end of its historical trading range of 15-20x, a level it previously commanded during significant capacity expansion phases.
Despite sector-wide concerns over power demand and pricing, Jefferies remains optimistic about JSW Energy’s long-term growth prospects, citing its capacity expansion strategy and strategic acquisitions as key drivers of future earnings growth.
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