Motilal Oswal has downgraded JSW Energy and reduced its price target on the stock by nearly 17%, citing lower valuation comfort after a recent rally and a reduction in its earnings estimates.

JSW Energy, one of India's leading private-sector power producers with a growing renewable energy portfolio, has seen its share price rise 17% over the last four months. Motilal Oswal said valuation comfort has reduced, with the stock trading at 12 times its estimated EV/EBITDA for FY28.

The brokerage has cut its FY28 EBITDA estimate for JSW Energy by 9%. It said the revision primarily reflects a slower renewable energy commissioning pace in FY28 than previously assumed — a notable factor given India's push to rapidly expand its clean energy capacity and the competitive landscape among private developers racing to add gigawatts.

JSW Energy has stated that its capacity addition remains on track, a position that contrasts with Motilal Oswal's more cautious timeline assumption. Other brokerages including Jefferies and CLSA have also weighed in on the stock, though their specific conclusions were referenced in the report.

Among the 22 analysts who cover JSW Energy, 14 have a “buy” rating, three have a “hold” rating and five have a “sell” rating, indicating that a majority of analysts remain positive on the company despite the valuation concerns flagged by Motilal Oswal.

The report also listed stock performance as a section of its coverage.