Top Power Stock To Buy: MOFSL Projects 55% Upside Potential Despite 44% Dip From 52-Week High

Power Stock to Watch: Brokerage firm Motilal Oswal (MOFSL) has identified JSW Energy as a promising pick. The company boasts a market capitalization of Rs. 79,514.73 crore, with its stock currently trading at Rs.454.95—44% below its 52-week high.

Power Stock to Watch: With summer approaching, electricity consumption is set to rise sharply from April onwards, bringing increased focus on power sector companies as demand surges.

JSW Energy: A Power Stock with Strong Growth Potential

Diversified Power Generation Portfolio

JSW Energy operates across thermal, hydro, wind, and solar power segments, making it a well-diversified player in the power generation sector.

Brokerage Ratings and Growth Outlook

Brokerage firm Motilal Oswal (MOFSL) has issued a bullish outlook on JSW Energy, estimating a 55% long-term upside for investors. The stock is currently trading around Rs. 455, 44% below its 52-week high of Rs. 804.95.

JSW Energy’s KMPCL Acquisition

JSW Energy is in the process of acquiring KSK Mahanadi Power Company (KMPCL), which has a total capacity of 3,600 MW, with 1,800 MW already operational.

The Creditors’ Committee approved the acquisition in January.
It has received NCLT approval, while CCI clearance is pending.
Final approval is expected in Q1 FY26.
Under the deal, JSW Energy will hold a 74% stake, with creditors retaining the remaining 26%.
The Net Present Value (NPV) of JSW’s stake is estimated at Rs. 27 per share.

10 GW Power Target by FY25

JSW Energy aims to become a 10 GW power company by FY25, and management has reiterated that it remains on track.

In Q3 FY24, it acquired 4,696 MW from O2 Power.
It also acquired a 125 MW renewable energy plant from Hetero Group.
The company’s total power generation capacity now stands at 6,751 MW.

JSW Energy Share Price Target

MOFSL has set a target price of Rs. 705, based on Sum-of-the-Parts (SoTP) valuation metrics, representing a 55% upside from the current price of Rs. 454.95.

In September 2024, JSW Energy hit a 52-week high of Rs. 805.
On February 17, 2025, the stock hit a low of Rs.420, marking a 40% drop from its peak.

With strong expansion plans, strategic acquisitions, and a bullish brokerage outlook, JSW Energy remains a key stock to watch in the power sector.