Why is JSW Energy falling/rising?

Jun 30 2025 10:16 PM IST
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As of 30-Jun, JSW Energy Ltd's stock price is at 521.40, having decreased by 0.21% after a trend reversal. While it has shown positive short-term returns, it has significantly underperformed year-to-date, with an 18.85% decline compared to the Sensex's gain, due to weak fundamentals and declining investor confidence.
As of 30-Jun, JSW Energy Ltd's stock price is currently at 521.40, reflecting a decrease of 1.1 or 0.21%. The stock has experienced a trend reversal, falling after six consecutive days of gains. Despite this recent decline, the stock has shown a positive return of 4.30% over the past week and 6.81% over the past month, outperforming the Sensex, which returned 2.09% and 2.65% respectively during the same periods. However, the stock has underperformed significantly on a year-to-date basis, with a decline of 18.85% compared to the Sensex's gain of 7.00%. Key negative factors affecting the stock include weak long-term fundamentals, evidenced by a low Return on Capital Employed (ROCE) of 7.34%, a high Debt to EBITDA ratio of 4.71, and disappointing financial results, including a substantial drop in profit before tax.

Broader Market Context: The broader market context shows that while the stock has performed well in the short term, it has significantly underperformed over the past year, generating a return of -29.02% compared to the BSE 500's positive return of 3.95%. This underperformance, coupled with falling investor participation and a decline in delivery volume, indicates a lack of confidence among investors. Additionally, despite high institutional holdings at 24.38%, which typically suggests a more stable investment, the company's weak long-term growth prospects and high valuation metrics may be contributing to the stock's recent price decline.
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