ScoreWhy is JSW Energy Ltd ?
1
Poor Management Efficiency with a low ROCE of 7.77%
- The company has been able to generate a Return on Capital Employed (avg) of 7.77% signifying low profitability per unit of total capital (equity and debt)
2
Low ability to service debt as the company has a high Debt to EBITDA ratio of 8.74 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 8.74 times
- The company has been able to generate a Return on Equity (avg) of 7.78% signifying low profitability per unit of shareholders funds
3
Healthy long term growth as Operating profit has grown by an annual rate 29.58%
4
Flat results in Mar 26
- INTEREST(9M) At Rs 4,510.93 cr has Grown at 77.23%
- PBT LESS OI(Q) At Rs -164.49 cr has Fallen at -150.9% (vs previous 4Q average)
- PAT(Q) At Rs 371.57 cr has Fallen at -36.5% (vs previous 4Q average)
5
With ROCE of 6, it has a Very Expensive valuation with a 1.8 Enterprise value to Capital Employed
- The stock is trading at a discount compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of 7.40%, its profits have risen by 23.6% ; the PEG ratio of the company is 1.8
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to JSW Energy should be less than 10%
- Overall Portfolio exposure to Power should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Power)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is JSW Energy for you?
Medium Risk, High Return
Absolute
Risk Adjusted
Volatility
JSW Energy
7.54%
0.25
29.44%
Sensex
-9.63%
-0.74
13.04%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
19.74%
EBIT Growth (5y)
29.58%
EBIT to Interest (avg)
2.10
Debt to EBITDA (avg)
5.50
Net Debt to Equity (avg)
2.13
Sales to Capital Employed (avg)
0.24
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
19.05%
Pledged Shares
12.99%
Institutional Holding
24.08%
ROCE (avg)
7.55%
ROE (avg)
7.78%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
42
Industry P/E
26
Price to Book Value
3.36
EV to EBIT
25.94
EV to EBITDA
17.72
EV to Capital Employed
1.76
EV to Sales
9.08
PEG Ratio
1.82
Dividend Yield
0.36%
ROCE (Latest)
6.01%
ROE (Latest)
6.95%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bullish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Mildly Bullish
Mildly Bullish
Moving Averages
Bullish (Daily)
KST
Bullish
Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend11What is working for the Company
NET SALES(Latest six months)
At Rs 8,580.34 cr has Grown at 52.45%
PAT(Latest six months)
At Rs 856.70 cr has Grown at 48.76%
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 5,765.22 cr
-12What is not working for the Company
INTEREST(9M)
At Rs 4,510.93 cr has Grown at 77.23%
PBT LESS OI(Q)
At Rs -164.49 cr has Fallen at -150.9% (vs previous 4Q average
PAT(Q)
At Rs 371.57 cr has Fallen at -36.5% (vs previous 4Q average
DEBT-EQUITY RATIO(HY)
Highest at 2.50 times
NON-OPERATING INCOME(Q)
is 187.59 % of Profit Before Tax (PBT
EPS(Q)
Lowest at Rs 2.12
Loading Valuation Snapshot...
Here's what is working for JSW Energy
Net Sales - Latest six months
At Rs 8,580.34 cr has Grown at 52.45%
Year on Year (YoY)MOJO Watch
Near term sales trend is very positive
Net Sales (Rs Cr)
Cash and Cash Equivalents - Half Yearly
Highest at Rs 5,765.22 cr
in the last six half yearly periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Here's what is not working for JSW Energy
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs -164.49 cr has Fallen at -150.9% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 322.91 CrMOJO Watch
Near term PBT trend is very negative
PBT less Other Income (Rs Cr)
Profit After Tax (PAT) - Quarterly
At Rs 371.57 cr has Fallen at -36.5% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 585.25 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Nine Monthly
At Rs 4,510.93 cr has Grown at 77.23%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
Non Operating Income - Quarterly
is 187.59 % of Profit Before Tax (PBT)
MOJO Watch
The company's income from non business activities is high; which is not a sustainable business model
Non Operating Income to PBT
Earnings per Share (EPS) - Quarterly
Lowest at Rs 2.12
in the last five quartersMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (Rs)
Debt-Equity Ratio - Half Yearly
Highest at 2.50 times
in the last five half yearly periodsMOJO Watch
The company is borrowing more to fund its operations; it's liquidity situation may be stressed
Debt-Equity Ratio
Non Operating Income - Quarterly
Highest at Rs 352.29 cr
in the last five quartersMOJO Watch
Increased income from non business activities may not be sustainable
Non Operating Income
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