JSW Energy is Up 40% Since May 31 but Brokerages Say Sell

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JSW Energy is Up 40% Since May 31 but Brokerages Say Sell

By Aditya Raghunath

Investing.com -- Shares of JSW Energy Ltd (NS: JSWE ) have been on a growth spurt in the last six months. They have moved up almost 147% in 2021. They have gained 40% since May 31 when they closed at Rs 117.75 to Rs 165.1 on July 6.

The company reported a 16.5% increase in net profit for the quarter ended March 31, 2021 at Rs 104.75 crore compared to the corresponding quarter in March 2020. Net sales, however, declined to Rs 1,569.62 crore in the March 2021 quarter.

However, analysts at brokerage firm ICICI Direct are not bullish on the share price as they believe its valuations have run up too far. It said, “Over the past 4-5 years, JSWEL has changed its strategy a couple of times, which can be partly attributed to sectoral shifts. It has proved itself credibly in terms of project execution and operational capabilities, but we await more clarity and pace pickup in the RE auction space for incorporating capacities beyond 7GW.”

The brokerage has given a target of Rs 130 to the stock which is a decrease of over 21% from current levels.

HDFC (NS: HDFC ) Securities has also recommended a sell on the stock with a target price of Rs 118.

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