JP Power shares soar 31% in a month but hit resistance; analysts advise caution

Shares of Jaiprakash Power Ventures Ltd extended their losing streak for the third straight session on Thursday, falling 4.25 per cent to settle at Rs 22.75. Despite the recent decline, the stock remains up 30.67 per cent over the past month.

Bourses BSE and NSE have put the securities of JP Power under the short-term ASM (Additional Surveillance Measure) framework. Exchanges put stocks in short-term or long-term ASM frameworks to caution investors about high volatility in share prices.

The sharp rally earlier was driven by speculation around a potential acquisition of its associate firm, Jaiprakash Associates Ltd, with names like Adani Group, Vedanta and Dalmia Bharat Group reportedly in the race. However, there has been no official confirmation on the matter so far.

Responding to an exchange query regarding the unusual price and volume movement, JP Power stated: "We believe that the movement of the company's scrip is purely based on market-driven forces."

The counter has pulled back from its recent high of Rs 27.70 due to profit booking and is currently testing key support around Rs 21. Analysts recommend caution in the near term, advising against fresh entries while suggesting stop-loss placements for existing holders.

Shiju Koothupalakkal, Technical Research Analyst at Prabhudas Lilladher (PL), noted, "The stock has declined from the peak zone of Rs 27.70 amid profit booking and has slipped below the near-term support of Rs 24. The next key support is placed at Rs 21, which must hold to maintain strength. While the broader trend remains positive, further upward movement may resume once the stock stabilises and consolidates, which would provide more clarity on the next move. The 50-Exponential Moving Average (EMA) stands near Rs 18.75 — a break below this level would weaken the trend and sustaining above it is essential to maintain the trend intact."

Drumil Vithlani, Technical Research Analyst at Bonanza, said, "JP Power has formed an inverted hammer candlestick pattern on weekly charts, indicating profit booking or selling pressure following a sharp 31 per cent rally in a month. Although the RSI remains above the midpoint, suggesting a positive bias, fresh entries should be avoided at current levels due to visible signs of exhaustion. Existing holders may consider placing a stop loss below Rs 21.30 to safeguard against potential downside."

The counter traded lower than the 5-day simple moving average (SMA) but higher than the 10-day, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). Its 14-day relative strength index (RSI) came at 60.10. 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 19.28 against a price-to-book (P/B) value of 1.30. 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.