JSW Energy share price targets see cuts; stock falls 10% post Q3 results; here’s why

Shares of JSW Energy faced selling pressure in Tuesday’s trading session, slipping as much as 9.72% to hit a day’s low of Rs 432 on the BSE, down from the previous close of Rs 478.55. The decline comes after the company announced its third-quarter earnings and brokerages trimmed their price targets.

Axis Direct said that the revenue numbers were a ‘Miss’, coming in 5% below their estimates and 10% below consensus, largely due to lower-than-expected power generation.

While the company reported a net sales growth of 67% year-on-year to Rs 4,082 crore, it wasn't enough to meet street expectations, analysts said. 

While the reported Profit After Tax (PAT) surged due to deferred tax gains. JM Financial highlighted that the company reported an adjusted loss of Rs 260 crore vs Rs 167.8 crore in the same quarter last year. 

Following the results, global brokerage firm Jefferies cut its price target on the stock to Rs 660 from Rs 700 earlier, maintaining a ‘Buy’ rating. 

JM Financial maintained a ‘Buy’ rating but lowered its price target to Rs 614 from Rs 697. The brokerage termed the quarter an "all-round miss", adding that debt & execution are pain points. They further slashed their FY28 EBITDA and PAT estimates by 17% and 52% respectively.

Similarly, Axis Direct maintained its ‘Buy’ call but revised its target price downward to Rs 630 from Rs 705. 

According to data from Trendlyne, JSW Energy shares is trading below its key moving averages, 50-day simple moving average (SMA) and the 200-day SMA, signalling a downtrend. The RSI currently stands at 43.6, placing it in the mid-range.