JSW Energy share price increased 3.3% to Rs 484 on February 21, continuing its four-day rally. Morgan Stanley maintained an ‘overweight’ rating with a price target of Rs 545, indicating a 16.5% upside. Despite the recent surge, JSW Energy stock has declined 27% since the start of 2025. The company is expanding its thermal and renewable energy business, with a projected 24% EBITDA CAGR over FY24–28. Q3 FY25 net profit dropped 27% year-over-year due to lower revenue from thermal and hydroelectric facilities.
Key Highlights:
Morgan Stanley’s Optimism Drives JSW Energy Stock Rally:
JSW Energy’s share price surged as high as 3.3% to Rs 484 during morning trade on February 21 after global brokerage firm Morgan Stanley reaffirmed its ‘overweight’ rating on the stock and set a price target of Rs 545. This target suggests a potential upside of 16.5% from its last close of Rs 468 on the National Stock Exchange (NSE).
Despite the recent uptrend, the stock has seen a sharp decline of 27% since the beginning of 2025. JSW Energy has also dropped 42% from its peak of Rs 809, reflecting challenges in the power sector. However, analysts remain bullish on the company’s long-term growth, particularly in the renewable energy segment.
Analysts Back JSW Energy’s Strong Market Position:
Market experts are confident about JSW Energy’s pivotal role in India’s energy transition and security. The company has been aggressively expanding its business through acquisitions, increasing its market share in competitive tariff auctions, and investing heavily in green energy and storage assets.
Morgan Stanley expects JSW Energy to achieve a 24% compound annual growth rate (CAGR) in EBITDA over FY24–28. Renewable energy is anticipated to see even stronger growth, with an estimated 52% CAGR. These projections reinforce JSW Energy’s potential as a key player in India’s evolving energy landscape.
Q3 FY25 Earnings: Profit Decline Due to Lower Thermal and Hydro Revenue
JSW Energy reported a consolidated net profit of Rs 168 crore for Q3 FY25, marking a 27% year-on-year decline from Rs 231 crore in the same quarter last year. The decline was primarily attributed to lower revenues from its thermal and hydroelectric facilities.
The company’s revenue for the quarter fell slightly to Rs 2640 crore from Rs 2661 crore in the previous year. According to the firm, lower short-term realization at its Ratnagiri and Vijayanagar thermal plants offset the positive impact of increased renewable capacity and the commissioning of Utkal Unit-1.
Stock Performance and Outlook:
At around 9:20 AM on February 21, JSW Energy shares were trading at Rs 480, up 2.5% from the previous close on the NSE. While the stock remains significantly below its all-time high of Rs 809, analysts believe its long-term growth trajectory remains intact.
With a strong focus on expanding its renewable energy portfolio and strategic acquisitions, JSW Energy is well-positioned for growth despite short-term challenges. The company’s financial health and expansion plans could drive future gains, making it a stock to watch in India’s power sector.
JSW Energy’s share price rally, following Morgan Stanley’s bullish outlook, highlights investor confidence in its future prospects. Despite recent setbacks in its earnings, the company’s aggressive expansion into green energy and storage solutions strengthens its long-term position. Investors will be closely watching JSW Energy’s next moves as it navigates market challenges while striving for sustained growth.
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