This JSW Group Energy Company acquired a 74 per cent Stake in KSK Mahanadi to Achieve a 20 GW Capacity by FY2030
With a PE ratio of 46.6x, the company trades at a premium compared to the industry PE of 28.8x.
JSW Energy Ltd has successfully completed the acquisition of KSK Mahanadi Power Company Limited, a significant move. This acquisition was finalized following approvals from the National Company Law Tribunal, Hyderabad Bench, and the Competition Commission of India. The transaction involved a resolution amount of Rs 16,084.08 crores, with JSW Energy acquiring a 74 per cent equity stake in KSK Mahanadi, while secured financial creditors hold the remaining 26 per cent.
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KSK Mahanadi operates a 3,600 MW thermal power plant in Chhattisgarh, with 1,800 MW currently operational and the remainder under construction. This acquisition aligns with JSW Energy's strategic plan to achieve a 20 GW capacity by FY2030, enhancing its thermal power portfolio and surpassing the 10 GW operational capacity milestone. The deal, financed through internal accruals and debt, marks the largest acquisition of a thermal power asset under the IBC process in India. JSW Energy now operates 5,308 MW of thermal power plants, with further capacity additions planned.
About Company
JSW Energy Ltd and its subsidiaries are primarily engaged in the business of generation of power from its power assets located at Karnataka, Maharashtra, Nandyal and Salboni. It is the holding company for the JSW group's power business. The company also has a JV company engaged in mining activities and an associate engaged in manufacturing of turbines.
JSW Energy Ltd has a market capitalisation of Rs 87,476 crore and is currently trading at Rs 500. The stock has reached a 52-week high of Rs 805 and a low of Rs 419 over the past year. The one-year return is -2.92 per cent, and whooping 598 per cent returns in 5 years. The company has been maintaining a healthy dividend payout of 20.1 per cent.
As per the Quarterly Results, in Q3 FY25, the company reported a revenue was Rs 2,419 crore, showing a decline of 4.08 per cent year-over-year (YoY) and 24.67 per cent quarter-over-quarter (QoQ). Net profit for the same period was Rs 157 crore, down by 32 per cent YoY and 82 per cent QoQ. For the fiscal year 2024, revenue reached Rs 11,486 crore, up by 11.17 per cent compared to FY23. Net profit for FY24 was Rs 1,725 crore, marking a growth of 16.55 per cent from the previous fiscal year.
With a PE ratio of 46.6x, the company trades at a premium compared to the industry PE of 28.8x. The company has ROCE of 8.59 per cent and ROE of 8.40 per cent.
Investors must keep this Large-Cap stock on their radar.
Disclaimer: The article is for informational purposes only and not investment advice.