Why is JSW Energy falling/rising?

Aug 07 2025 10:54 PM IST
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As of 07-Aug, JSW Energy Ltd's stock price is 533.65, reflecting a slight decline and underperformance over the year with a -22.67% drop. Despite positive short-term returns, challenges such as poor management efficiency and high debt levels are negatively impacting investor sentiment.
As of 07-Aug, JSW Energy Ltd is experiencing a slight decline in its stock price, currently at 533.65, reflecting a change of -0.1 (-0.02%). The stock has been underperforming, having lost -0.81% over the last three days, and it is currently lower than its 200-day moving average, despite being higher than its shorter-term moving averages. In terms of returns, the stock has shown a positive performance over the past week and month, with increases of +3.63% and +4.55% respectively, but it has significantly underperformed over the year with a decline of -22.67%. Factors contributing to this recent movement include healthy long-term growth indicated by a 21.51% annual increase in operating profit, alongside high institutional holdings at 23.8%. However, the company faces challenges such as poor management efficiency, a low Return on Capital Employed (ROCE) of 7.34%, and a high Debt to EBITDA ratio of 4.71 times, which negatively impact investor sentiment.

In the broader market context, the stock's recent performance contrasts with the benchmark, as it has outperformed the Sensex in the short term with a +3.63% return over the past week compared to the benchmark's -0.69%. However, over the longer term, JSW Energy has significantly lagged behind the market, with a year-to-date decline of -16.95% compared to the Sensex's +3.18%. This underperformance is compounded by the company's flat results in June and a high Debt-Equity ratio, which raises concerns about its ability to service debt. Overall, while there are some positive indicators for JSW Energy, the combination of poor management efficiency and high debt levels continues to weigh on its stock price.
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