ЁЯПнA Short History
JP Power, which started in 1994, is the power arm of the Jaypee Group. It runs thermal and hydro plants in MP and Uttarakhand.
Jaiprakash Associates, the company that owns it, sold cement and hydro assets over the years to pay off debt, but JP Power stayed in business.
In FY25, the company’s sales fell by about 20%, which was the first time in three years that its revenue fell. However, it still made money.
ЁЯФН The most recent news in the market
JP Power stock jumped 44% in a week, reaching тВ╣26.81, a 12-year high.
As of July 14, it was trading between тВ╣24 and тВ╣27, which are new 52-week highs.
Adani Group’s bid for Jaiprakash Associates (JP Power’s promoter) as part of bankruptcy proceedings gave the market momentum.
Analysts say it’s technically overbought (high RSI), but a lot of people think it can still go up if the acquisition goes through.
ЁЯУИ Current fundamentals and outlook.
In FY25, revenue decreased by approximately 20% year on year, but profits remained consistent.
PE ratio ~23, P/B ~1.3, and EPS тВ╣1.19.
Despite the fact that much has been pledged, promoters (including Jaypee Associates) continue to hold a significant stake.
Jaiprakash Associates’ debt resolution could be delayed due to lender uncertainty surrounding JP Power.
What Next?
JP Power might gain indirectly if the Adani bid is successful; the stock might continue to rise or remain strong.
Given oversold signals, technical analysts predict a possible short-term correction.
In the long run, analysts anticipate 30тАУ40% growth in three months, with trading support in the тВ╣22тАУтВ╣23 range.
For one month, one year, and three years, JP Power has performed significantly better than the Sensex.
JP Power is getting attention because its stock jumped due to rumours of a buyout, high trading activity, and steady profits even with fewer sales. If Adani-Associates makes a deal, the stock could keep going up, although it might dip first based on its RSI.
What’s likely: Over the next 3 months, the stock will probably stay between тВ╣24 and тВ╣27. If the buyout news is confirmed, it could go above тВ╣30. Looking ahead, the medium-term outlook is still good because the company is profitable and has a good base in infrastructure.
