Thursday, May 20, 2010


Earlier I have recommended a BUY on JSW energy @ Rs.115 on 29 March 2010 .After touching a high of Rs.131.50/- ,now it came back to the previous level due to overall negative sentiment in the Market.I reiterate a BUY on this at current level. Try to catch it in lots due to extreme volatility in the market.

old report is reproduced 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/-

1 comment :


    ARMAN FINANCIAL bse code 531179 seems better choice than Capital Trust.Atleast Arman Financial they have never gone into loss since past many years.I feel recent foray into MFI will bring the company into greater dimension and forthcomming higher NP, thereby, entering into different league like SE Investment.One can steal the opportunity at lower prices and have patience.Management is good and proven.It will go miles after miles.



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