FY21\/22e EPS up 15\/8% to factor in gains from acquisition of GMR plant in Odisha; upgraded to \u2018Buy\u2019 with TP of Rs 78<\/p>\n
JSW Energy (JSWE) has signed a share purchase agreement to acquire GMR Kamalanga (1,050MW). The deal is valued at a maximum amount of Rs 53 bn (implying an EV of Rs 51 m\/MW). We see the transaction as being value accretive for JSWE, given the strategic location of the plant, room for merchant volumes, and the company\u2019s ability to reduce interest and O&M costs post acquisition. Moreover, the move lends visibility to JSWE\u2019s capital deployment. We raise our FY21\/22 EPS estimates by 15\/8% to account for the takeover of Kamalanga from FY21. Upgrade to Buy with a TP of Rs 78\/sh (23% upside).<\/p>\n
GMR Kamalanga \u2013 asset strategically located near coal belt: GMR Kamalanga (3x 350MW) is strategically located in Orissa near the coal belt region. Accordingly, variable costs are low at just Rs 1.5-1.6\/kWh. <\/p>\n","protected":false},"excerpt":{"rendered":"
FY21\/22e EPS up 15\/8% to factor in gains from acquisition of GMR plant in Odisha; upgraded to \u2018Buy\u2019 with TP of Rs 78 JSW Energy (JSWE) has signed a share purchase agreement to acquire GMR Kamalanga (1,050MW). The deal is valued at a maximum amount of Rs 53 bn (implying an EV of Rs 51 m\/MW). We see the transaction as being value accretive for JSWE, given the strategic location of the plant, room for merchant volumes, and the company\u2019s ability to reduce interest and O&M costs post acquisition. Moreover, the move lends visibility to JSWE\u2019s capital deployment. We raise […]<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[130,240,138],"tags":[],"class_list":["post-338782","post","type-post","status-publish","format-standard","hentry","category-newspapers","category-power-the-financial-express","category-the-financial-express"],"acf":[],"_links":{"self":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/338782","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/comments?post=338782"}],"version-history":[{"count":0,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/posts\/338782\/revisions"}],"wp:attachment":[{"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/media?parent=338782"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/categories?post=338782"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/infralive.com\/web\/wp-json\/wp\/v2\/tags?post=338782"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}