The shares of JSW Energy shot up more than 12% during intraday trade on Thursday. The company entered an agreement with the Maharashtra government to establish a 960-megawatt hydro pump storage project in Raigarh. As of 11:40 IST on Friday, the shares were exchanging hands for Rs. 334 a piece, up 1.36% for the day.
Sajjan Jindal-led JSW Energy is part of the JSW Group. It currently has a power generation capacity of 4,559 MW, out of which 3158 MW is thermal power,1391 MW is hydropower and 10 MW solar power. The company has a diversified geographical presence across India and South Africa.
On the development, Prashant Jain, Joint Managing Director and CEO of JSW Energy, remarked “We are excited to actively participate in the strong prospects of Hydro PSPs in sustainably solving the problem of intermittency of renewable power. In continuation to our target to achieve 10GW of Hydro PSP capacity, we are pleased to have signed a second MoU with the Government of Maharashtra.”
The brokerages were very upbeat about JSW Energy’s performance. Around the middle of the year, HDFC Securities and Kotak Institutional Securities had given a sell call on its shares with target prices of Rs. 160 and Rs. 115 respectively. The investment rationale was given as lower power generation due to nil generation at the Ratnagiri station.
However, defying analysts’ concerns, the shares have increased 60% in three months since July. The stock shot up Rs. 121 from Rs. 208 levels it used to trade around during that time. This gives the company a market capitalization of Rs. 55,000 crore making it a large-cap energy company.
Written by Vikalp Mishra
Disclaimer
The content in this news article is not investment advice. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
