JSW Energy tumbles 4.5% on analysts warning
November 2, 2017: Shares of JSW Energy plunged nearly 4.5 per cent in Thursday’s trade despite posting over 38 per cent growth in net profit as analysts have warned that the company will face rising competition from renewable energy players.
Following a weak open at Rs. 83 against the previous close of Rs. 85.30, the stock touched an intraday high of Rs. 84.40 and a low of Rs. 81.50. The stock posted biggest intraday percentage loss since September 27.
At 11.25 a.m., the shares were down 1.82 per cent at Rs. 83.75 on the BSE. On the NSE, the stock fell 1.87 per cent to Rs. 83.85.
According to Morgan Stanley, competition from solar energy players among other factors implies low visibility for new coal-based power-purchase agreements.
The brokerage has maintained “underweight” rating, and the target price at Rs. 50.
Eleven of 21 analysts covering stock rate the stock as “sell” or lower, 8 “hold” and 2 “buy” or stronger; their median target price is Rs. 66, according to Thomson Reuters data.
The stock had gained about 40 per cent this year up to Wednesday’s close.