Check Before You Invest : JSW Energy Ltd

Snapshot

Q.1 Which industry/sub-sector does JSW Energy Ltd belong to?

JSW Energy Ltd belongs to the Power sector, operating specifically within the Power Generation/Distribution segment.

Q.2 Is JSW Energy Ltd a good quality company?

JSW Energy Ltd is a average quality company, based on a somewhat consistent 10-year financial track record.

Q.3 Is JSW Energy Ltd undervalued or overvalued?

JSW Energy Ltd appears Somewhat overvalued, as its key valuation ratios are above with their past averages.

Q.4 Is JSW Energy Ltd a good buy now?

JSW Energy Ltd is a good buy now, based on strong price trend analysis suggesting prices may rise. However, you need to check its quality and valuation before making a decision

Performance Analysis

Q.1 Revenue growth of JSW Energy Ltd?

JSW Energy Ltd revenue growth is 2.3% for FY-2025, which is below its 5-year CAGR of 7.26%, indicating slower growth.

Q.2 Return on capital employed (ROCE) of JSW Energy Ltd?

JSW Energy Ltd Return on capital employed is 6.94% for FY-2025, which is below its 5-year historical median of 8.83%. The current ROCE is below its estimated weighted average cost of capital (WACC) of 11.25%, indicating value preservation.

Q.3 Return on Asset of JSW Energy Ltd?

JSW Energy Ltd Return on Asset is 2.58%, which is below its 5-year historical median of 3.08%, indicating deteriorated asset utilization efficiency.

Q.4 Return on Equity (ROE) of JSW Energy Ltd?

JSW Energy Ltd Return on equity is 8.27% for FY-2025, which is in line with its 5-year historical median of 8.27%, indicating the business is making similar use of its shareholders capital.

Q.5 Cash conversion cycle of JSW Energy Ltd?

JSW Energy Ltd Cash conversion cycle is 0 days, below its 5-year historical median of 14 days, indicating improved working capital management. However, you need to compare this with its peers in the industry.

	Current Level	5-year Historic Median
Asset Turnover	0.15	0.24
ROE	8.27	8.27
ROCE	6.94	8.83
Cash Conversion Cycle	-	14 days

Q.6 Gross Profit margin of JSW Energy Ltd?

JSW Energy Ltd Gross profit margin which is the profit after deduction of direct costs, is 32.7% for FY-2025, which is in line with its 5-year median of 32.7%, indicating stable margins.

Q.7 Operating Profit Margin of JSW Energy Ltd?

JSW Energy Ltd Operating Profit Margin which is the profit after deduction of all operating costs, is 44.52% for FY-2025, which is in line with its 5-year median of 43.73% indicating stable margins.

Q.8 Net Profit Margin of JSW Energy Ltd?

JSW Energy Ltd Net Profit Margin is 16.88% for FY-2025, is above with its 5-year median of 15.02%, indicating increasing margins.

	Current Level	5-year Historic Median
Gross Profit Margin	32.7	32.7
Operating Profit Margin	44.52	43.73
Net Profit Margin	16.88	15.02

Q.9 Debt to Equity ratio of JSW Energy Ltd?

JSW Energy Ltd Debt-to-Equity ratio is 1.82, which is above with the industry average of 0.78, indicating higher debt levels in the industry.

Q.10 Debt to cash flow from operations of JSW Energy Ltd?

JSW Energy Ltd Debt to cash flow from operations is 12.93, which is at a unhealthy level.

Ownership & governance

Q.1 Promoter shareholding and pledge status of JSW Energy Ltd?

Promoters hold 69.41% of the JSW Energy Ltd, with 12.99% of their stake pledged, indicating high pledge risk.

Peer comparison (industry-wise, mcap)

Q.1 Revenue growth of JSW Energy Ltd vs industry peers?

JSW Energy Ltd revenue CAGR is 7.26%, compared to the industry median CAGR of 6.32%, indicating faster growth and gaining its market share.

Profit Metrics

	Current Level	5-year Industry Median
Revenue Growth	2.3	6.3
Gross Profit Growth	1.6	4.6
Operating Profit Growth	-3	2.1
Net Profit Growth	15	9.5

Operating Efficiency

	Current Level	5-year Industry Median
Asset Turnover	0.15	0.26
ROE	8.27	10.18
ROCE	6.94	10.95
Cash Conversion Cycle (days)	0.23	69

Valuation & price assessment

Q.1 Stock return of JSW Energy Ltd over the last decade?

Over the last 9 year(s), the stock has delivered a CAGR of 23.8% based on the current price.

Q.2 What return has the stock given over the last decade?

	9Y	5Y	3Y	1Y
Share Price CAGR	23.8%	36.4%	29.3%	16.8%

Q.3 Valuation ratios of JSW Energy Ltd vs historical?

The current P/E is similar that its historical median.

Q.4 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	43.45	45.10	27.19
Price to Book	3.28	3.19	1.80
Price to Sales	5.62	6.54	6.78
EV to EBITDA	16.28	18.24	13.53

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