1. At a Glance
A once heavily indebted power player, JP Power is trying to clean up its act with thermal, hydro, and mining businesses in its belt. But with a 10% drop in a day, pledges galore, and SEBI penalties hovering like Damocles’ sword—what exactly is lighting up this stock?
2. Introduction with Hook
Imagine a power plant built on a seesaw. One side’s burning coal, the other side’s burning investor patience.
- Stock tanked 9.99% in a single session. Ouch.
- 24.5 rupee stock. Market cap still over ₹16,800 Cr. Hype? Hope? Or hallucination?
- Promoter pledge: 79.2%—yes, almost everything but their Aadhaar card is mortgaged.
JP Power has evolved from “default-prone dud” to “turnaround hopeful.” But is this phoenix rising… or just a moth near the flame?
3. Business Model (WTF Do They Even Do?)
JP Power = Electricity + Mining + Cement Grinding + Drama
Core Operations
- 400 MW Hydro Plant (Uttarakhand)
- 500 MW Thermal Plant (Bina, MP)
- 1320 MW Supercritical Thermal Plant (Nigrie, MP)
- Coal and sand mining ops
- Cement grinding because why not?
They operate across generation and resources but with heavy reliance on thermal (non-renewable). This isn’t your ESG-friendly startup—it’s old-school infra with new ambitions.
4. Financials Overview
Revenue:
- FY25: ₹5,462 Cr
- 5-year Sales CAGR: 11% (not terrible, not great)
- FY25 OPM: 34% (finally flexing margin muscle)
Profit:
- FY25 Net Profit: ₹814 Cr
- 3-Year Profit CAGR: 96%
- But TTM profit growth: down 42%. The hangover is real.
Bottom Line:
Improvement is visible, but still volatile. Their quarterly profits dance like Navratri—up, down, sideways.
5. Valuation
Current Market Cap: ₹16,800 Cr
P/E: ~20.7
Book Value: ₹17.9
CMP / BV: 1.37x
Fair Value Estimate
- Base case (6x EV/EBITDA): ₹16–18
- Optimistic case (8x EV/EBITDA + better interest coverage): ₹25–28
- Bear case (SEBI penalties, pledges collapse): ₹12–14
Fair Value Range: ₹14–28
6. What’s Cooking – News, Triggers, Drama
- SEBI Penalty Drama: ₹1334 Cr penalty imposed, stayed by HC. Risk still alive.
- Promoter CIRP: Jaiprakash Associates (promoter) under insolvency. Hello, uncertainty.
- Credit Ratings U-turn: From BBB- to BBB+ (thanks Acuité & CRISIL).
- Capex freeze? No major expansions visible; focusing on stabilizing cash flows.
7. Balance Sheet
| Item | FY25 (₹ Cr) |
|---|---|
| Equity Capital | 6,853 |
| Reserves | 5,428 |
| Borrowings | 3,778 |
| Total Liabilities | 17,786 |
| Fixed Assets | 12,696 |
Key Points:
- Debt down massively from ₹27,000 Cr (2014) to ₹3,778 Cr (2025).
- Net worth improved, but still low ROE.
- Asset-heavy, cash-light.
8. Cash Flow – Sab Number Game Hai
| Year | CFO | CFI | CFF | Net Flow |
|---|---|---|---|---|
| FY25 | ₹1,714 Cr | ₹39 Cr | ₹-892 Cr | ₹862 Cr |
| FY24 | ₹1,927 Cr | ₹-991 Cr | ₹-964 Cr | ₹-28 Cr |
Takeaways:
- Healthy operating cash, mostly used to pay down debt.
- No signs of extravagant spending (which is a good thing for once).
- But no dividend = no direct investor rewards yet.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROCE | 10% |
| ROE | 6.85% |
| Debtor Days | 63 |
| P/E | 20.7 |
| OPM | 34% |
Commentary:
- ROCE inching up.
- ROE? Meh.
- P/E a little too excited for a utility company with baggage.
10. P&L Breakdown – Show Me the Money
| Year | Revenue | OPM % | PAT | EPS |
|---|---|---|---|---|
| FY25 | ₹5,462 Cr | 34% | ₹814 Cr | ₹1.19 |
| FY24 | ₹6,763 Cr | 33% | ₹1,022 Cr | ₹1.49 |
| FY23 | ₹5,787 Cr | 19% | ₹55 Cr | ₹0.08 |
Insights:
- Revenue dipped in FY25, but profit still solid.
- Operating margins dramatically better post-COVID era.
- Earnings looking less “kaam-chalao” and more “investor-wooing.”
11. Peer Comparison
| Name | CMP | P/E | ROE | OPM | Market Cap |
|---|---|---|---|---|---|
| NTPC | ₹342 | 14.16 | 13.59% | 28.77% | ₹3.3 L Cr |
| Adani Green | ₹1,032 | 100+ | 14.61% | 79% | ₹1.6 L Cr |
| JSW Energy | ₹528 | 51.7 | 7.41% | 44.45% | ₹92K Cr |
| NHPC | ₹88 | 29.45 | 7.67% | 53% | ₹88K Cr |
| JP Power | ₹24.5 | 20.7 | 6.85% | 34% | ₹16.8K Cr |
Takeaway:
- Not the best, not the worst. Cheapish relative to green peers, but not clean.
- ROE/ROCE needs muscle gain.
- Growth without leverage is a good sign though.
12. Miscellaneous – Shareholding, Promoters
| Category | Mar 2025 |
|---|---|
| Promoters | 24.00% (Pledged 79.2%) |
| FIIs | 6.31% |
| DIIs | 17.52% |
| Public | 52.17% |
- Public Hopes = Half the company
- FII inflow rising steadily (from 2.83% to 6.31%)
- But… Promoter pledge is the biggest red flag waving in the face of optimism.
13. EduInvesting Verdict™
Jaiprakash Power is a classic Indian corporate thriller. You’ve got debt reduction, profit turnaround, SEBI legal duels, promoter drama, and a stock that refuses to be ignored.
Yes, the company is generating cash.
Yes, it’s paying down loans.
Yes, earnings have jumped.
But…
- Promoter shadiness still lurks.
- P/E expansion seems frothy for a utility company.
- Legal overhangs may punch again.
So what is it?
Hopeful turnaround or overvalued hot potato?
Either way, wear your asbestos gloves before touching this.
Metadata
Written by EduInvesting Analyst | July 15, 2025
Tags: JP Power, Power Stocks, Turnaround, Debt Reduction, Promoter Pledge, SEBI Drama, Midcap Utilities
