Shares of JSW Energy plunged nearly 4.5 per cent in Thursday's trade despite posting over 38 per cent growth in net profit as analysts have warned that the company will face rising competition from renewable energy players.

Following a weak open at Rs 83 against the previous close of Rs 85.30, the stock touched an intraday high of Rs 84.40 and a low of Rs 81.50. The stock posted biggest intraday percentage loss since September 27.

At 11.25 a.m., the shares were down 1.82 per cent at Rs 83.75 on the BSE. On the NSE, the stock fell 1.87 per cent to Rs 83.85.

According to Morgan Stanley, competition from solar energy players among other factors implies low visibility for new coal-based power-purchase agreements.

The brokerage has maintained “underweight” rating, and the target price at Rs 50.

Eleven of 21 analysts covering stock rate the stock as “sell” or lower, 8 “hold” and 2 “buy” or stronger; their median target price is Rs 66, according to Thomson Reuters data.

The stock had gained about 40 per cent this year up to Wednesday's close.

(With inputs from Reuters)

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