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Morgan Stanley’s bullish stance on JSW Energy is rooted in its ability to effectively navigate and invest in both energy transition and energy security. The company is aggressively expanding its renewable energy segment while also reinforcing its presence in the thermal power sector.
By Vivek Iyer February 21, 2025, 5:15:10 PM IST (Published)
JSW Energy share price gained in Friday's trade following an optimistic research note from global brokerage Morgan Stanley, which sounded confident in the company’s integrated business model, recognising it as one of India’s top utility firms positioned to capitalise on the future of energy theme.
Morgan Stanley’s bullish stance on JSW Energy is rooted in its ability to effectively navigate and invest in both energy transition and energy security. The company is aggressively expanding its renewable energy segment while also reinforcing its presence in the thermal power sector.
What is the Future of Energy Theme?
The future of energy theme revolves around two key aspects: energy transition and energy security. Energy transition refers to the global shift from fossil fuels to cleaner, renewable sources, while energy security focuses on ensuring a stable and sufficient supply of energy. JSW Energy is making significant strides in both areas by expanding its green renewable energy business, investing in storage assets to enhance efficiency, and growing its thermal power capacity both organically and inorganically.
JSW Energy has also been gaining a substantial market share in recent bidding rounds at reasonable tariffs.
Morgan Stanley projects a robust earnings trajectory for JSW Energy. The brokerage firm forecasts an EBITDA compounded annual growth rate (CAGR) of 24% between FY24 and FY28, with the renewable energy division expected to see an even stronger growth at a 52% CAGR over the same period.
Reflecting the positive sentiment, Morgan Stanley has initiated coverage on JSW Energy with a target price of ₹545 per share.
On Friday, the stock jumped around 6% to close at ₹496 per share. Currently, JSW Energy has a market capitalisation of ₹86,794 crore, but the stock has faced a significant downturn over the past six months, declining by over 30%.
