JSW Energy (JSWENERGY)

FairStock Score: 50/100 — MIXED

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

Mr. Market is asking ₹560 for JSW Energy, a ₹1.03 lakh Cr power generator. The promoter owns 69.26%, which gives me comfort that the owner has skin in the game. Recent sales grew 23.65% and profit 16.14%, and a Piotroski F-Score of 8/9 suggests accounting momentum. The latest quarter was profitable—₹4,082 Cr sales and ₹529 Cr net profit—so this is not a broken enterprise. But that is where my enthusiasm cools. P/E 43.85 and P/B 3.20 for an ROE 8.32% and ROCE 6.49% business is not Graham-like. Book value is ₹175.10, Graham Number ₹218.92, so at ₹560 I'm paying 2.56x Graham Number and have negative margin of safety -122.80%. PEG 5.58 and EV/EBITDA 390.21 hint expectations are sky-high. Debt/equity 2.29 and Altman Z 1.40 point to a leveraged balance sheet with financial stress. Free cash flow -₹19,152 Cr means the business is consuming cash, likely funding capex/acquisitions with debt. Dividend yield 0.36% gives little income. 5-year revenue CAGR 7.26% is modest, so the recent growth may not be durable. FairStock Score 50/100 is mixed. Power generation is capital intensive and cyclical; without a moat in tariffs or fuel costs, returns depend on regulation and leverage. I would wait for margin of safety near Graham Number, debt reduction, positive FCF, and ROCE above cost of capital. At ₹560, it's a pass for a value investor.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer