ScoreWhy is JSW Energy Ltd ?
1
Poor Management Efficiency with a low ROCE of 7.13%
- The company has been able to generate a Return on Capital Employed (avg) of 7.13% 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 7.65 times
- Low ability to service debt as the company has a high Debt to EBITDA ratio of 7.65 times
- The company has been able to generate a Return on Equity (avg) of 8.06% signifying low profitability per unit of shareholders funds
3
Healthy long term growth as Net Sales has grown by an annual rate of 22.61% and Operating profit at 32.10%
4
Flat results in Jun 26
- INTEREST(9M) At Rs 4,612.65 cr has Grown at 35.73%
- PAT(Latest six months) At Rs 842.54 cr has Grown at -26.81%
- DEBT-EQUITY RATIO(HY) Highest at 2.50 times
5
With ROCE of 7, it has a Very Expensive valuation with a 1.7 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 6.12%, its profits have fallen by -6.4%
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, Medium Return
Absolute
Risk Adjusted
Volatility
JSW Energy
6.12%
0.21
29.84%
Sensex
-2.63%
-0.19
13.57%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.61%
EBIT Growth (5y)
32.10%
EBIT to Interest (avg)
2.10
Debt to EBITDA (avg)
5.98
Net Debt to Equity (avg)
2.21
Sales to Capital Employed (avg)
0.23
Tax Ratio
Tax Ratio is Negative%
Dividend Payout Ratio
17.89%
Pledged Shares
13.28%
Institutional Holding
27.61%
ROCE (avg)
7.45%
ROE (avg)
8.06%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
51
Industry P/E
23
Price to Book Value
3.38
EV to EBIT
25.21
EV to EBITDA
16.92
EV to Capital Employed
1.74
EV to Sales
9.06
PEG Ratio
NA
Dividend Yield
0.35%
ROCE (Latest)
6.97%
ROE (Latest)
7.49%
Loading Valuation Snapshot...
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
No Signal
Bollinger Bands
Bullish
Bullish
Moving Averages
Bullish (Daily)
KST
Mildly Bearish
Bullish
Dow Theory
Mildly Bearish
No Trend
OBV
Mildly Bearish
Mildly Bearish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend8What is working for the Company
PBT LESS OI(Q)
At Rs 466.37 cr has Grown at 73.6% (vs previous 4Q average
CASH AND CASH EQUIVALENTS(HY)
Highest at Rs 5,765.22 cr
NET SALES(Q)
Highest at Rs 5,207.13 cr
-7What is not working for the Company
INTEREST(9M)
At Rs 4,612.65 cr has Grown at 35.73%
PAT(Latest six months)
At Rs 842.54 cr has Grown at -26.81%
DEBT-EQUITY RATIO(HY)
Highest at 2.50 times
Loading Valuation Snapshot...
Here's what is working for JSW Energy
Profit Before Tax less Other Income (PBT) - Quarterly
At Rs 466.37 cr has Grown at 73.6% (vs previous 4Q average)
over average PBT of the previous four quarters of Rs 268.61 CrMOJO Watch
Near term PBT trend is very positive
PBT less Other Income (Rs Cr)
Net Sales - Quarterly
Highest at Rs 5,207.13 cr
in the last five quartersMOJO Watch
Near term sales trend is 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 After Tax (PAT) - Quarterly
At Rs 470.97 cr has Fallen at -18.3% (vs previous 4Q average)
over average PAT of the previous four quarters of Rs 576.13 CrMOJO Watch
Near term PAT trend is very negative
PAT (Rs Cr)
Interest - Nine Monthly
At Rs 4,612.65 cr has Grown at 35.73%
over preceding nine months periodMOJO Watch
Rising interest cost signifies increased borrowings
Interest Paid (Rs cr)
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
InfinHub Market Technologies FZ-LLC, Building-2, Unit 112, Dubai Internet City, Dubai, United Arab Emirates
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