India, Oct. 5 -- JSW Energy is in the middle of a large expansion cycle, with rising depreciation and finance costs putting pressure on reported profitability. At the same time, new renewable and storage assets are starting to contribute to operating earnings. This article examines whether the current capex burden can be absorbed and whether the new capacity can generate enough earnings and cash flow to justify the investment.

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JSW Energy trades at around Rs486, with a market capitalisation of roughly Rs89,200 crore. Its 52-week range stood at approximately Rs428-Rs617, while the stock is trading at a PE of 44x.

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