Buy JSW Energy; target of Rs 613: Prabhudas Lilladher

Moneycontrol • 3 days ago

Original source

Key Investment Pillars

  • Generation growth: Supported by PLF and added capacity, with 1.7GW added since April and a FY27 target of 3GW remaining on track.
  • C&I capacity expansion: Emerging as a key growth pillar, with installed capacity at ~3.7GW and expected to exceed 8.5GW by 2030.
  • Renewable expansion: Annual additions of 2.5–3GW planned in FY28 and FY29, with a 30GW target by FY30.
  • Debt management: Net debt rose to INR 655.8bn, but the company remains adequately funded after the INR 101.5bn equity raise.

Thesis Validation Checklist

  • Observable signals: Investors should watch for commissioning of the remaining ~1.6GW of capacity in H2FY27, annual renewable additions, and growth in C&I capacity.
  • Financial metrics: Monitor net debt/EBITDA and net debt/equity for signs of improvement or deterioration.
  • Regulatory environment: Changes in policies or regulations affecting the renewable energy sector could impact JSW Energy's growth plans.