Multibagger Alert: This top stock from the energy sector delivered 470% returns in less than one year.

Riding on aggressive energy transition, prudent capital allocation and a robust balance sheet, JSW Energy Ltd has turned into a multibagger stock within a short period.

Introduction:

JSW Energy Ltd, an Indian company engaged in the business of power generation, transmission and trading, has turned multibagger by delivering bumper returns of 470% as of October 7, 2021. The stock which was trading at Rs 66.9 on January 1, 2021, closed at Rs 381.2 on October 6, 2021. It made a 52-week high of Rs 399 on October 1, 2021.

China’s power crisis in recent times has re-emphasized the importance of switching from non-renewable sources of energy to renewable ones. Acknowledging the importance of green energy, JSW Energy seeks to become a ‘net-zero’ contributor to greenhouse gas (GHG) emissions by 2050 or even earlier.

The company aims to implement a cleaner fuel mix and decrease the consumption of specific fuels in its existing thermal plants, and by vastly scaling its portfolio of greenfield renewable assets, majorly across the wind and solar. It is also evaluating emerging technologies across green hydrogen; off-shore wind; and storage solutions including battery and pumped hydro storage.

In FY21, on a consolidated basis, the company reported a turnover of Rs 7,160 crore. Its operating profit stood at Rs 3,144 crore, while its net profit stood at Rs 805.53 crore.

On its Capex plans, JSW Energy has tied up a Rs 16,000 crore Capex and signed all the PPA agreements, for which the construction is in full swing. The asset commissioning will begin from Q4FY22, wherein the company will be commissioning close to 200 MW to 300 MW every quarter thereafter.

Earlier this week, the company announced that it has signed a contract with Senvion India, a leading manufacturer of wind turbines, for procuring 591 MW of onshore wind turbines for the company’s under-construction pipeline of renewable energy projects. Senvion will commence the supply of turbines by the second quarter of CY2022. The turbines will produce enough green energy to meet the annual electricity requirements of more than 4.5 lakh households in the country.

At 12.40 pm, the share price of JSW Energy was trading at Rs 376.75, a decrease of 1.17% from the previous closing price of Rs 381.2 on BSE.