Shares of JSW Energy appreciated to the tune of 9.08% on Friday’s early trades after the management highlighted that the company has received a letter of acceptance for a 500 MW battery energy storage project in January 2023. Its shares were trading at ₹745.00 apiece, up 7.06% at 12:40 PM.
The Power company said that this is one of the largest such projects based in Rajasthan and that the company plans to get operational in 18 months. The management also said that the company plans to get operational in 18 months. It stated that it could offer the storage mechanism on lease with an expected rental of ₹ 11 lakh per MW, implying total annual revenues of ₹ 650 crores.
In another development, the company’s MD and CEO Prashant Jain told CNBC TV-18. “Out of 140 million units sold today, 15 percent market share is ours.” He added that the company has an open capacity of 900 megawatts which it is selling in the merchant market.
JSW Energy has guided for a net profit of ₹ 4,800 crores by FY30, and it aims to be a 10-gigawatt company by FY25, so by FY 30, it will be operating at 30 gigawatt.
Prashant Jain added that the company is on course to achieve its FY25 target about a year and a half early. It is also sure of meeting the FY30 target much ahead of time.
JSW Energy is a mid-cap stock with a market capitalization of ₹ 37,539 crores. It has a return on equity of 10.83% and an ideal debt-to-equity ratio of 0.64. The company’s shares were trading at a price-to-earnings ratio of 18.23, which is higher than the industry average of 17.21, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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