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CLSA upgrades JSW Energy to buy, raises target price to Rs 85

Buy JSW Energy Ltd. at a price target of Rs 85.0 .

ETMarkets.com|
Updated: Nov 05, 2019, 09.15 AM IST
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With catalysts lined up, CLSA sees JSW Energy recouping part of the last five years of de-rating. .
CLSA has upgraded JSW Energy to buy from sell in the long termand raised target price to Rs 85 from Rs 59. Shares of JSW Energy ended up 4.8% at Rs 73.60 on Monday while the BSE Sensex closed 136.93 pont up at 40,301.96.

Company Financials

For the quarter ended 30-09-2019, the company has reported consolidated sales of Rs 2118.55 crore, down -12.17% from last quarter sales of Rs 2412.17 crore and down -12.84% from last year same quarter sales of Rs 2430.76 crore. The company has reported net profit after tax of Rs 347.84 crore in the latest quarter.

Investment Rationale

Earlier this year, JSW Energy’s board decided not to pursue electric vehicle business in order to focus on power business and on demonstrated, value-accretive M&A, said CLSA. This should reduce investor concerns on profitable growth and cash diversion into unrelated projects, it said. JSW Energy is a ‘value’ stock, said CLSA. With catalysts lined up, CLSA sees it recouping part of the last five years of de-rating.

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Disclaimer: This recommendation is analyst's own and does not represent those of economictimes.com & ETMarkets.com. Please consult your financial advisor before taking any position in the stock/s mentioned.

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