Shares of this large-cap Power stock under the JSW Group jumped nearly 5 percent in Monday’s trading session after the company’s subsidiary secured a Letter of Award (LoA) worth Rs 67.6 crores for setting up a ‘Green Hydrogen’ facility. Year-to-date, the company’s stock has risen close to 22 percent.
With a market capitalization of Rs 81,181.19 crores, the stocks of JSW Energy Limited started their trading session on Monday at Rs 488.45 and currently trade at Rs 493.20. The company’s scrip witnessed an intra-day high of Rs 506.60 exhibiting a gain of approximately 5 percent compared to the previous closing levels of Rs 483.10 apiece.
The company’s shares are inching towards their 52-week high price of Rs 518.65. In the past year, the company’s stock has delivered multibagger returns of around 120 percent to its stakeholders.
Such stock price movements are observed today after the company, through a regulatory filing with the Bombay Stock Exchange (BSE), intimated about JSW Neo Energy Limited, a wholly owned subsidiary of JSW Energy Limited, securing a Letter of Award (LoA) for setting up a ‘Green Hydrogen’ facility worth Rs 67.6 crores.
The company received the LoA in the auction conducted by “Solar Energy Corporation of India Limited” (SECI) under the ‘Strategic Interventions for Green Hydrogen Transition’ (SIGHT) scheme.
The receipt of the abovementioned order strengthens the Group’s position in providing an early mover advantage in the Green Hydrogen space. The Company has set a target to reach 20GW of power generation capacity and 40GWh of energy storage capacity by 2030.
During the recent financial quarters, the company reported underperforming numbers as far as the prime business indicators, viz, operating revenues and after-tax profits are concerned. The former dipped from Rs 3,259 crores during Q2FY24 to Rs 2,542 crores during Q3FY24, and the latter, during the same period, reduced from Rs 850 crores to Rs 230 crores.
As per the recent presentations, the company’s aggregate installed capacity of 428GW is scattered across various segments with 240GW attributable to Thermal power, 134GW towards Renewable power, 47GW towards Hydro power, and the remaining 7GW towards Nuclear power.
Incorporated in 1994, JSW Energy Limited is engaged in the business of generating as well as selling power in India. With a power generation capacity of more than 6,500 MW, the company operates in various Indian states including Karnataka, Maharashtra, Tamil Nadu, Gujarat, West Bengal, Rajasthan, etc.
Written by Amit Madnani
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