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JSW Energy shares shed multibagger tag in 2022; time to buy, sell or hold?

JSW Energy shares shed multibagger tag in 2022; time to buy, sell or hold?

JSW Energy share price today: JSW Energy stock touched an intraday high of Rs 297.95 rising 3.65% on BSE. The share opened at Rs 288.80 against the previous close of Rs 287.45 on BSE

JSW Energy stock is currently trading higher than the 5-day, 20-day and 200-day moving averages but lower than 50-day and 100-day moving averages JSW Energy stock is currently trading higher than the 5-day, 20-day and 200-day moving averages but lower than 50-day and 100-day moving averages

Shares of JSW Energy have delivered flat returns in 2022. The stock, which closed at Rs 300.50 on December 31, 2021, ended at Rs 287.60 on December 30, 2022. This translates into a fall of 4.33% last year. In fact, shares of JSW Energy shed their multibagger tag in 2022. Prior to 2022, the stock zoomed 344% in 2021. The stock, which closed at Rs 67.60 on December 31, 2020, ended at Rs 300.50 on December 31, 2021.

In the last three years and five years too, shares of JSW Energy have gained 325% and 228%, respectively.

However, JSW Energy shares have consolidated in the last year. The stock has struggled to break out from the narrow range during the period. The energy stock has kept investors guessing whether they should continue to hold the stock or exit the counter.  

The JSW Energy stock has a one-year beta of 1.4%, indicating high volatility during the period. It is currently trading higher than the 5-day, 20-day and 200-day moving averages but lower than 50-day and 100-day moving averages. JSW Energy has a high PE ratio of 22.24 against the industry PE of 10.46. In the current trading session, the JSW Energy stock was trading 2.59% higher at Rs 294.90 on BSE. The stock has been gaining for the last six sessions.

The stock touched an intraday high of Rs 297.95 rising 3.65% on BSE. It opened at Rs 288.80 against the previous close of Rs 287.45 on BSE. Total 0.51 lakh shares changed hands amounting to a turnover of Rs 1.51 crore on BSE. Market cap of the firm rose to Rs 48,131 crore. 

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The stock hit a 52-week high of Rs 369 on September 5, 2022 and a 52-week low of Rs 182 on June 20, 2022 on BSE.

In the second quarter of the current fiscal, JSW Energy logged a 37.27 per cent rise in its consolidated net profit to Rs 465.67 crore. Net profit of the company stood at Rs 339.24 crore for the quarter ended September 30, 2021. Sales climbed 14.37% to Rs 2,387 crore in Q2 from Rs 2,087 crore a year ago.

Here’s a look at what analysts said on the prospects of the stock this year.

Vaishali Parekh, Vice President - Technical Research, Prabhudas Lilladher said, “The JSW Energy stock has witnessed a decent correction recently from near Rs 350 levels and has bottomed out at around  Rs 250 zone with a significant pullback. Overall, the stock has consolidated in the year 2022 and technically now needs to cross the resistance zone of Rs 315 to improve the trend in the short-term time frame. Further, ahead a breach above the long-term resistance trendline of  Rs 350 would strengthen the overall bias and would indicate a breakout for fresh upward journey with new target levels of  Rs 410 and  Rs 470 as per the fibonacci retracement calculation.” 

Abhijeet from Tips2trade said, "JSW Energy has strong resistance at Rs 295.25 on the daily charts. Investors can buy on a close above Rs 295.25 for targets of  Rs 319-350. Support will be at Rs 246."

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Published on: Jan 02, 2023, 3:14 PM IST
Posted by: Priya Raghuvanshi, Jan 02, 2023, 3:09 PM IST