Why is JSW Energy falling/rising?

Sep 09 2025 10:31 PM IST
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As of 09-Sep, JSW Energy Ltd's stock price is at 507.50, down 0.36%, and has underperformed its sector. The stock has a negative year-to-date return of -21.02% and a significant decline of 30.60% over the past year, driven by poor management efficiency and high debt levels.
As of 09-Sep, JSW Energy Ltd's stock price is currently at 507.50, reflecting a decrease of 1.85, or 0.36%. The stock has underperformed its sector today by 0.62% and has experienced a trend reversal after two consecutive days of gains. Its performance over the past week shows a decline of 0.49%, while it has dropped 2.15% over the past month. The stock's year-to-date return is notably negative at -21.02%, and it has also underperformed significantly over the past year with a decline of 30.60%. Contributing to this downward movement are factors such as poor management efficiency indicated by a low Return on Capital Employed (ROCE) of 7.34% and a high Debt to EBITDA ratio of 4.71 times, which suggests a low ability to service debt. Additionally, the stock's valuation appears expensive with a PEG ratio of 3.7, despite a rise in profits by 11.1% over the past year.

In the broader market context, the Sensex has shown a positive return of 1.18% over the past week, contrasting with JSW Energy's decline. This indicates that while the overall market is performing well, JSW Energy is struggling to keep pace, reflecting broader concerns about its financial health and management efficiency. The stock's liquidity remains adequate for trading, but a significant drop in delivery volume by 34.83% against the 5-day average suggests waning investor interest. Overall, the combination of poor financial metrics, underperformance relative to the benchmark, and declining investor participation contributes to the stock's current downward trajectory.
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