'Buy the weakness' in JSW Energy, says Jefferies; stock falls 10% 

Shares of JSW Energy Ltd slipped 10% on Thursday after Q3 earnings came below expectations.  Axis Securities said the company missed its estimates on the revenue, EBITDA, and PAT front. The brokerage reduced its price target to Rs 770 from the earlier Rs 800 per share but maintained its buy call on the stock. 

"Consolidated Net sales stood at Rs 2,439 Cr, down 4%/25% YoY/ QoQ, missing our estimates by 8%. The lower revenue was due to lower short-term realisation at Ratnagiri and Vijayanagar plants and lower tariffs at hydro plants due to a change in depreciation policy as per the CERC tariff regulations. EBITDA stood at Rs 914 Cr, down 18%/46% YoY/ QoQ, missing our estimates by 23%. The EBITDA margins stood at 37.5%, down 622bps/1457bps YoY/QoQ due to lower short-term spreads. PAT stood at Rs 157 Cr, down 32%/82% YoY/QoQ, missing our estimates by 47%," said Axis. 

Jefferies said investors can 'Buy the weakness' in JSW Energy but cut share price target by 21%

The global brokerage said EBITDA in Q3 was sharply lower than expectations, while lower merchant prices and flat fuel costs hurt the spread.

JSW Energy shares fell 10% to Rs 453.60 on Wednesday against the previous close of Rs 504 on BSE. Total 5.78 lakh shares of JSW Energy changed hands amounting to a turnover of Rs 27.14 crore on BSE. Market cap of the firm slipped to Rs 82,206 crore.

Net profit fell 32% to Rs 157 crore in Q3 against Rs 232 crore in the same period last year.

Revenue fell 1% year-on-year to Rs 2,640 crore in Q3 from Rs 2,661 crore in the corresponding period last year.

The company's board cleared the raising of long-term funds up to Rs 3,000 crore via rated and listed Non-Convertible Debentures on a private placement basis.  The company also re-appointed Rajiv Sharma as an independent director of the company for a second term of five consecutive years with effect from 24 March 2025. Earnings were announced after market hours on Tuesday.