Wednesday, April 28, 2010


JSW ENERGY  has declared  its first full year result after the listing of its shares in stock exchanges.Company has posted Consolidated NP of  745 Cr for the full year (Growth of  170% than last year).Even we exclude the other income component ,result is excellent. Considering the fact that ,only 1/10 of its expected capacity by 2013  is operational now, it is an excellent BUY even at current level .Any decline due to general negative sentiment may be taken as an opportunity to accumulate it.Company also declared a dividend of 7.5%.

Reproducing our earlier report below:

JSW ENERGY Ltd is originally promoted by Sajjan Jindal 
Group and  Belgium based Tractebel S.A in 1994.Later 
in 2001 Tractebel sold its stake and exited from 
the company.It started commercial production of 
power in the year 2000 and now it has two thermal
power plants with a total capacity of 860 MW.
These two plants are in vijayanagar ,Karnataka and 
one of these  can run with dual fuel(gas and coal)
and the other one is coal based.
It also have another 1200 MW capacity plant under 
construction at Rathnagiri which is expected to fully
operational by October 2010.Another 1080 MW capacity 
Lignite based plant is also under construction 
(Raj West Power) in Barmer ,Rajastan which is expected
to fully commissioned in the beginning of 2011.
Some of the other plants-RWPL Phase 2 (270MW by 2013,)
Kutehr Hydro power project(240 MW by 2015), 
Chhattisgarh (1320 MW by 2014)Maharastra
(3020 MW Coal based), West Bengal(1600 MW coal based),
Jharkhand(1620 MW) are also under various phase of 
implementation. For most of the projects which are 
going to be commissioned in near future ,company 
already signed power purchase agreements .
To part finance its various projects company came
out with an IPO in December
2009 and collected 2143 crore. To ensure the supply 
of coal for its various project company already signed 
agreements with various agencies mainly with Sungai 
Belati Coal, Indonesia. Company also formed another  
joint venture company with Toshiba Corporation  in the
name of Toshiba JSW Turbine and Generator Private
Limited.This company is meant for the design,
engineering, manufacture, assembly and sale of
sub-critical and super-critical steam turbines
and generators which will 
range in capacity from 500 MW to 1,000 MW.
                     Major risk of project execution
is applicable to JSWEL as in the case of any 
large project. But considering the facts that, 
it already implemented and started production from
some of its plants  and the experience got from it 
along with the  strength of the group gives 
sufficient confidence in this company. Also ,
the commissioning of its  various projects 
in near future gives revenue 
visibility which is a major positive for the company. 
Investors expecting low risk with steady return can 
BUY JSW Energy at current market price of Rs.115/-

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