JP Power shares plunge 10% but still up 99% from 52-week low; time to book profits?

Shares of Jaiprakash Power Ventures Ltd slumped sharply on Tuesday, snapping a strong three-day uptrend. The stock hit its 10 per cent lower circuit at Rs 24.50 and eventually closed 9.92 per cent lower at Rs 24.52. Despite today's decline, the stock remains up 98.54 per cent from its 52-week low of Rs 12.35, touched on March 3 this year.

The recent rally was fuelled by rising buzz around a potential acquisition of its associate company -- Jaiprakash Associates Ltd -- with Adani Group, Vedanta and Dalmia Bharat Group reportedly in the fray. However, there has been no official confirmation on the matter yet.

Given the sharp run-up, short-term traders may consider booking profits at current levels. A market expert suggested low-risk investors should avoid the counter, while existing holders may use a trailing stop loss strategy to protect gains.

Kranthi Bathini, Director of Equity Strategy at WealthMills Securities, stated, "Most power sector stocks, including speculative ones, have performed well recently. JP Power falls into the speculative category and investors with low risk tolerance are advised to stay away. However, those currently holding the stock may consider using a trailing stop loss, following its recent sharp rally."

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher (PL), noted, "The overall bias has turned positive, indicating strong upside potential, though a brief consolidation may occur as the RSI (Relative Strength Index (RSI) remains overheated and near the overbought zone. We see potential upside targets at Rs 31.40 and Rs 36.70 in the coming days, with Rs 24 acting as a key support from the current price."

Drumil Vithlani, Technical Research Analyst at Bonanza, said short-term traders can consider profit booking. "However, the broader trend remains positive. One can consider trailing the stop-loss to Rs 23 and continue holding the position, with potential upside targets of Rs 30 and Rs 33 in the coming months," Vithlani also said.

The counter traded higher than the 5-day, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 69.94. A level below 30 is defined as oversold while a value above 70 is considered overbought.

The scrip has a price-to-earnings (P/E) ratio of 20.78 against a price-to-book (P/B) value of 1.40. Earnings per share (EPS) stood at 1.18 with a return on equity (RoE) of 6.76. According to Trendlyne data, JP Power has a one-year beta of 1.1, indicating high volatility.

As of June 2025, promoters held a 24 per cent stake in the company.