JSW Energy share price climbs 3% after Q4 results, CLSA Motilal Oswal maintain buy

Shares of JSW Energy climbed over 3% in morning trade on BSE on May 21, a day after the company reported a 28-fold jump in its consolidated net profit to Rs 108.44 crore in the Q4 ended march.

According to the statement, the total income stood Rs 1847.65 crore in the quarter as compared to Rs 2018.16 crore a year ago.

It also reported a consolidated net profit of Rs 1081.18 crore for FY20 as against Rs 684.49 crore in 2018-19.

Global brokerage firm CLSA(Credit Lyonnais Securities Asia) maintained a buy call on the stock but cut the target price to Rs 75 from Rs 85. 

As per CNBC-TV18, CLSA said the company had a stellar Q4 led by 47% expansion in its dark spread.

CLSA has lowered EPS estimates by 5% due to COVID-led demand destruction and lower asset values.

Motilal Oswal Financial Services has a buy recommendation on the stock with a target price of Rs 64.

The brokerage estimates a 16% decline in PAT for FY21, building in lower merchant volumes and realizations.

However, strong FCF(free cash flow) generation would continue, said Motilal, aided by tied up capacities,

"Nearly 80% of JSW's 4.4GW capacity is under a long term PPA's which generates strong free cash flows. Furthermore, these tied up PPA's contribute about 95% to the company's EBITDA," said Motilal.

Shares of the company traded 0.49% up at Rs 40.90 on BSE at 12.10 hours.