Why is JSW Energy falling/rising?

Jun 27 2025 10:07 PM IST
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As of 27-Jun, JSW Energy Ltd's stock price is 522.50, having increased by 1.04% over the last six days, but it faces challenges with a low ROCE of 7.34% and a high Debt to EBITDA ratio of 4.71. Despite recent gains, the stock has underperformed over the past year with a return of -28.89%, contrasting with the benchmark Sensex's positive performance.
As of 27-Jun, JSW Energy Ltd's stock price is currently at 522.50, reflecting an increase of 5.4 (1.04%). The stock has been on an upward trend, gaining for the last six consecutive days with a total return of 8.71% during this period. It has also outperformed the benchmark Sensex over the past week and month, with returns of 4.69% and 4.77%, respectively. However, despite these recent gains, the company faces significant challenges, including weak long-term fundamental strength indicated by a low Return on Capital Employed (ROCE) of 7.34% and a high Debt to EBITDA ratio of 4.71 times. Additionally, the stock has underperformed over the past year, generating a return of -28.89%, which contrasts sharply with the market's positive performance.

In the broader market context, while JSW Energy has shown positive short-term returns, it has lagged behind the benchmark Sensex, which has gained 2.00% over the past week and 3.07% over the past month. The stock's performance is further complicated by its weak long-term growth prospects, as evidenced by a modest annual net sales growth rate of 7.26% over the last five years. Despite high institutional holdings at 24.38%, which typically provide a level of stability and informed investment, the stock's valuation remains expensive relative to its fundamentals, contributing to its overall underperformance in the market.
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