JSW Energy Limited (JSWENERGY.NS) stock analysis

In our weekly check, JSW Energy Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9.

About JSW Energy Limited

JSW Energy Limited is an Utilities company (Independent Power Producers) based in India, listed on NSE as JSWENERGY.NS.

What our checks show for JSWENERGY.NS

Red flags

• Net debt is 6.5x a year of EBITDA (debt/equity 2.25). That limits room in a downturn and raises refinancing risk.
• Operating profit does not cover the interest bill (0x): interest is paid from cash or new debt.
• The net margin fell by 9.3 points over 5 years, to 11.8%: the company keeps less of each sale as profit.
• The gross margin fell by 4.8 points, to 49.3%: costs are rising faster than prices.
• Free cash flow is negative (-31.6% of revenue): the business spends more cash than it brings in.
• The dividend takes 1544% of profit: little cushion if profit falls.
• The stock has fallen as much as 74% from a peak. Would you have held through that?
• Recovering from its deepest fall took about 7.5 years.
• Pay in shares equals 0% of free cash flow: it dilutes shareholders.

Warning signs

• Margins expected to shrink
• The price is 38.7 times earnings (P/E): the market already pays for a lot of future growth.
• Return on capital (ROCE) is only 6.4%.

Strengths

• Operating cash flow is 1.94x net profit: the profit arrives as real cash.
• Analysts expect earnings per share to grow about 17.1% a year over the next years.
• Analysts expect revenue to grow about 17.4% a year over the next years.
• Revenue grew 22.3% a year over the last 3 years.
• Earnings per share grew 12.5% a year over the last 3 years.
• Net profit grew 14.9% a year over the last 3 years.

Similar companies

GULF-R.BK · TATAPOWER.NS · TORNTPOWER.NS · ADANIENSOL.NS · 1816.HK · ADANIPOWER.NS

Questions

What grade does JSW Energy Limited (JSWENERGY.NS) have?

In our weekly check, JSW Energy Limited is graded C (A to F). Of 25 checks on debt, profit, cash flow and trend: 13 pass, warnings: 3, red flags: 9. The grade is a risk check, not a buy or sell recommendation.

What are the main risks of JSWENERGY.NS stock?

This week's biggest flags for JSW Energy Limited: High debt, Weak interest cover, Margins falling. In total 12 of 25 checks show a warning or a red flag.

What does JSW Energy Limited do?

JSW Energy Limited is an Utilities company (Independent Power Producers) based in India, listed on NSE as JSWENERGY.NS.

The grade is a risk check, not a price forecast, and not investment advice. In our 10-year test (S&P 500, 2016-2026), stocks we graded A or B fell more than 30% 2-3 times less often than D or F, without a lower average return.

Updated 2026-10-31

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