Complete Analysis of Jaiprakash Power Ventures Ltd (JP Power)
Company Overview & Business Segments
Founded in 1994, Jaiprakash Power Ventures Ltd operates in thermal and hydroelectric
power generation, cement grinding, sand mining, and coal mining.
- 400 MW Vishnuprayag Hydro Plant (Uttarakhand)
- 1320 MW Nigrie Thermal Power Plant
- 500 MW Bina Thermal Power Plant (Madhya Pradesh)
- Diversified energy portfolio supported by captive coal mining
Recent Share Price & Market Metrics (As of Dec 2025)
- Current Share Price: ₹18.1 – ₹19.3
- Book Value: ₹17.9 (trading near book value)
- Market Capitalization: ~₹12,400 crore
- P/E Ratio: ~16.3
- P/B Ratio: ~0.95 (indicating undervaluation)
- No dividend payout despite consistent profits
Financial Performance Highlights
- Revenue growth of 16.9% in FY2023 to ₹67.6 billion
- Profit surged 1842% to ₹10.19 billion in FY2023
- Operating profit margin around 35%
- ROCE at 10.3%; ROE remains low at 6.85%
Stock Performance & Valuation Insights
- 141% return over last 3 years vs Sensex ~37%
- EV/EBITDA at 7.68, attractive compared to peers
- PEG ratio near zero indicates undervaluation vs growth
- Short-term volatility, but medium-term bullish trend
Operational Challenges & Risks
- Sales growth modest at 10.7% CAGR over 5 years
- Promoters have pledged ~79.2% of their holding
- No dividend payout for income-seeking investors
- Coal-based power exposure amid energy transition
Shareholding Structure & Governance
- Over 1.4 lakh shareholders as of Sept 2025
- Master Trust Bank of Japan – 12.25%
- Custody Bank of Japan – 5.77%
- Nippon Life Insurance – 5.10%
- Employee Shareholding Association – ~2.9%
- Transparent and detailed shareholding disclosures
Industry Position & Market Outlook
JP Power is positioned in India’s expanding power sector with a mix of thermal and
hydro assets. Cement grinding and captive coal mining provide vertical integration,
while hydro assets remain strategic amid renewable energy transition.
Investment Summary: Pros & Cons
Pros
- Undervalued with strong 3-year returns
- Diverse thermal and hydro asset base
- Improving profitability and margins
Cons
- Low ROE and moderate sales growth
- High promoter pledge risk
- No dividend payout
- Coal dependency risks
Conclusion & Outlook
JP Power presents a value-driven investment opportunity supported by strong profit
growth and attractive valuation metrics. However, investors should closely monitor
promoter pledge levels, operational efficiency, and sectoral shifts.
Upcoming results (expected Oct 2025) and broader energy sector developments will be
critical for future stock performance.