Jefferies says ‘buy the weakness’ in JSW Energy but cuts share price target by 21%

Brokerage firm Jefferies recommends investors to “buy the weakness” in shares of JSW Energy Ltd. after its December quarter results. However, it has cut its price target on the stock by 21% to ₹680 from ₹860 per share.

Shares of JSW Energy are down over 7% after its December quarter results. The stock had already corrected 37% from its peak of ₹804, before Wednesday’s fall. The revised price target from Jefferies implies a potential upside of 41% from current levels.

JSW Energy’s revenue declined 5.6% from last year, while its Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) fell 17.5% on a year-on-year basis.

Jefferies said that the EBITDA for the quarter was sharply lower than expectations, while lower merchant prices and flat fuel costs hurt the spread.

The brokerage said that the company is on track to meet its 9.2 GW financial year 2025 target.

To factor in the lower merchant prices, Jefferies has lowered JSW Energy’s EBITDA estimate for financial year 2026-2027 by 6% to 7%.

Out of the 12 analysts that have coverage on JSW Energy, seven of them have a “buy” rating, three say “hold”, while two of them have a “sell” rating.

Shares of JSW Energy are trading 7% lower on Wednesday at ₹468.