At a Glance
Jaiprakash Power Ventures Ltd (JP Power) has gone from bankruptcy whispers to bull market darling. It runs 2 thermal and 1 hydro power plant with a total capacity of ~2,220 MW. Profits are up, debt is down, but promoter pledging and cash flow mismatches are still very much in the chat. Let’s plug in 🔌
1. Introduction with Hook ⚡
Once upon a time, JP Power was that penny stock your cousin wouldn’t shut up about. “Bro ₹2 ka hai, kitna girega?” Fast forward to ₹19, and that cousin now runs a Telegram channel.
But has the fundamental story really changed—or is this just power sector FOMO with better packaging?
2. WTF Do They Even Do? 🏭
JP Power generates electricity across:
- Hydro (400 MW Vishnuprayag) – operational since 2007
- Thermal (500 MW Bina + 1320 MW Nigrie) – running since 2012–15
- Coal mining & sand mining – vertical integration level: Bhaiya, full combo le lo
- Also owns a cement grinding unit (legacy asset)
So yeah, it’s basically a half-baked NTPC meets ACC meets sand mafia vibes.
3. Financials Overview – Profit, Margins, ROE, Growth 💰
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Revenue (₹ Cr) | 3,302 | 4,625 | 5,787 | 6,763 | 5,462 |
| Net Profit (₹ Cr) | 281 | 107 | 55 | 1,022 | 814 |
| EPS (₹) | 0.39 | 0.16 | 0.08 | 1.49 | 1.19 |
| ROE (%) | 4.1% | 1.6% | 1.5% | 14.1% | 6.85% |
| OPM (%) | 35% | 24% | 19% | 33% | 34% |
🧠 TL;DR:
- Revenue = up
- Profits = yo-yo
- OPM = surprisingly sexy in FY24/25 (thanks thermal)
- ROE = single-digit but at least not negative like those old horror years
4. Valuation – Cheap, Meh, or Crack? 💸
- P/E: 15.9x – fair for power
- P/BV: 1.06x – not screaming “undervalued” anymore
- Market Cap: ₹13,028 Cr
- Book Value: ₹17.9/share
🎯 Fair Value Range: ₹14 – ₹21
Based on:
- 8–12x sustainable EPS of ₹1.2–1.5 (FY25–FY26 est.)
- Discount for pledging, group baggage
- Bonus: valuation support due to infra capex boom
5. What’s Cooking – News, Triggers, Drama 🍿
- 📈 Q4FY25 net profit ₹156 Cr – solid, but Q-o-Q growth slowing
- 🏗️ Power sector tailwinds: Demand surging, PLFs improving
- 🧹 JP Group still cleaning up financial mess from the Ambani-envy era
- 📢 Retail shareholding surging – 2.5 Cr+ investors = bubble risk?
Oh, and yes: no dividend since forever. Even your SBI FD pays better.
6. Balance Sheet – How Much Debt, How Many Dreams? 🧾
| Year | Borrowings (₹ Cr) | Reserves (₹ Cr) |
|---|---|---|
| FY18 | 23,416 | 1,783 |
| FY25 | 3,778 | 5,428 |
📉 Debt slashed by over 80% from peak – Jai debt reduction ki!
But note:
- Net debt still > ₹3,000 Cr
- No debt-free dream yet
- Promoter pledge: 79.2% 😬
7. Cash Flow – Sab Number Game Hai 🧮
| Year | CFO (₹ Cr) | FCF (₹ Cr est.) |
|---|---|---|
| FY24 | 1,927 | ~1,000 (post capex) |
| FY25 | 1,714 | ~850–900 |
Good operating cash flow, but investing activity swings like a trapeze artist. Capex seems tame now, but working capital bloats occasionally.
8. Ratios – Sexy or Stressy? 💃
| Ratio | FY25 |
|---|---|
| ROCE | 10.3% |
| ROE | 6.85% |
| Interest Coverage | 3.0x |
| Debt/Equity | 0.54x |
| Payout Ratio | 0% (as usual) |
💡 Ratios are ok, not fireworks. They scream “recovering ex-toxic relationship.”
9. P&L Breakdown – Show Me the Money 💥
- Sales FY25: ₹5,462 Cr
- Operating Profit: ₹1,855 Cr
- Net Profit: ₹814 Cr
But beware:
- Other income volatility (swings ₹±100 Cr)
- Still dependent on 1–2 core thermal assets for bulk earnings
10. Peer Comparison – Who Else Is in the Game? ⚔️
| Company | ROE (%) | P/E | Market Cap (Cr) |
|---|---|---|---|
| NTPC | 13.6 | 13.7x | ₹3.2 Lakh Cr |
| JSW Energy | 7.4 | 51.4x | ₹91,950 Cr |
| NLC India | 14.9 | 12.0x | ₹31,545 Cr |
| JP Power | 6.8 | 15.9x | ₹13,028 Cr |
📌 JP Power is still small in scale, and miles away from PSU-grade efficiency or dividend joy.
11. Misc – Promoters, Shareholding, Gossip 🤐
- Promoters: Jaiprakash Associates (24%) – same old, still pledged 79.2%
- FIIs: Up from 2.8% → 6.3% in 2 years
- DIIs: Holding steady at 17.5%
- Retail: 🧨 2.5 Cr+ shareholders = Shiba Inu meets PowerGrid?
12. EduInvesting Verdict™ 🧠
JP Power is the kind of stock that gives penny stock lovers hope and long-term investors ulcers.
- 🔥 20%+ CAGR in profit in 5Y – impressive
- ⚠️ Promoter pledge = huge risk
- ⚡ Thermal tailwind is real, but valuation is catching up
Would we call this a multibagger? Nah.
But could this go from ₹19 to ₹25 in the next power upcycle? Sure.
Just don’t forget – it’s still JP Group.
✍️ Written by Prashant | 📅 01 July 2025
Tags: JP Power Ventures, Power Stocks India, Thermal Plants, Penny Stock Multibagger, Promoter Pledge, Energy Sector
