JSW Energy shares rallied 3.3% to ₹484 in morning trade on February 21, 2025, extending their winning streak for the fourth consecutive session. The surge comes after Morgan Stanley maintained its ‘overweight’ rating on the stock, assigning a price target of ₹545, indicating a 16.5% upside potential from the previous close of ₹468 on the NSE.

Morgan Stanley’s Bullish Outlook

Morgan Stanley has expressed confidence in JSW Energy’s well-integrated business model and its strong position in India’s energy transition. The brokerage firm highlighted the company’s expansion into green energy, investments in energy storage assets, and acquisitions in the thermal segment.

Analysts forecast a 24% compound annual growth rate (CAGR) in EBITDA over FY24-28, with the renewable energy segment expected to grow at an impressive 52% CAGR. The company has also been winning market share in recent bids, offering competitive tariffs in the power sector.

JSW Energy’s Stock Performance

Despite today’s rally, JSW Energy shares have struggled in 2025, falling 27% year-to-date. The stock is currently 42% below its all-time high of ₹809. However, the recent positive sentiment from Morgan Stanley has provided support to the stock, boosting investor confidence.

At around 9:20 AM on February 21, JSW Energy shares were trading at ₹480, up 2.5% from the previous close on the National Stock Exchange (NSE).

Q3 Earnings Report – Profit Declines 27% YoY

JSW Energy recently reported a 27% year-on-year decline in consolidated net profit for the third quarter of FY25, mainly due to lower revenue from its thermal and hydropower plants.

• Net profit fell to ₹168 crore in Q3 FY25, compared to ₹231 crore in Q3 FY24.
• Revenue dropped slightly to ₹2,640 crore, down from ₹2,661 crore in the previous year.
• The decline was attributed to lower short-term realizations at the company’s Ratnagiri and Vijayanagar plants.

Despite this dip in profits, the company continues to focus on renewable energy expansion and strategic acquisitions in the thermal segment.

Future Growth and Investment Prospects

JSW Energy has been aggressively expanding its renewable energy portfolio, which is expected to drive long-term growth. The company is investing heavily in storage solutions and looking to strengthen its position in India’s evolving power sector.

The latest rating from Morgan Stanley suggests that investors should watch for strong earnings growth in the coming years. With a projected 16% upside and a positive long-term outlook, JSW Energy remains a key player in India’s power industry.

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