Motilal Oswal Securities Limited (MOSL) has reiterated its “buy” rating on JSW Energy, with a target price of ₹810. This suggests an upside potential of 29% from the current market price of ₹629.85.
The brokerage highlighted that the acquisition of 4.7GW high-quality renewable energy assets at approximately 7x EV/EBITDA is a significant step for JSW Energy. The deal aligns with the company’s strategy of diversifying its portfolio across solar, wind, and niche energy segments. Additionally, listed renewable energy generation companies are currently trading at around 15x EV/EBITDA, indicating strong potential value unlocking for JSW Energy, estimated at up to ₹57 per share upon completion of the deal.
MOSL noted that while JSW Energy’s net debt/EBITDA ratio is expected to rise to 5.4x for FY26 (up from the current estimate of 4.7x), this transitory increase in leverage is not considered a major concern given the company’s growth trajectory.
The report underscores JSW Energy’s focus on leveraging renewable energy growth opportunities while maintaining a balanced financial outlook.
Disclaimer:
This article is for informational purposes only and does not constitute financial advice. Please consult a qualified financial advisor before making investment decisions.
