Stocks to BUY: Up to 23% upside? JSW Energy, Tata Steel in focus as brokerages stay bullish

Stocks to BUY: When markets start getting choppy, investors usually go back to basics and look for companies where earnings are visible and growth isn’t just a story. That’s exactly why JSW Energy and Tata Steel are finding their way back into conversations.

Both stocks have seen fresh interest after positive commentary from global brokerages, and while they belong to very different sectors, the reasons behind the optimism aren’t too hard to understand.

JSW Energy Share Price Target

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Let’s start with JSW Energy. Over the past year, the company has quietly made a few changes that could make a big difference going forward.

One of the most important moves has been cutting down its exposure to merchant power. This part of the business is more dependent on spot prices, which can swing quite a bit. The company has reduced this exposure from 13 per cent to about 8 per cent now. In simple terms, that should make earnings a lot more predictable.

Jefferies seems to like this shift. It has kept a ‘Buy’ rating on the stock and given a target of Rs 660, compared to the current price of around Rs 538.

Then there’s the long-term plan. JSW Energy wants to scale up its capacity to 30 GW by 2030. It’s an ambitious target, no doubt, but if the execution stays on track, it could significantly change the size of the business.

There’s also an expectation that as capacity increases, the company’s debt position relative to earnings will improve. Jefferies is building in a strong growth trajectory, expecting EBITDA to grow at about 41 per cent annually between FY25 and FY28.

Tata Steel Share Price Target

Now coming to Tata Steel. This is a name most investors are already familiar with, but it’s back in focus thanks to improving sector cues.

Macquarie has maintained an ‘Outperform’ rating on the stock, with a target price of Rs 241 against the current level of around Rs 212.

The logic here is slightly different. Domestic steel prices have been relatively stable, which is a good sign for margins. On top of that, there are early signs that the European business — which has been a concern in the past could start improving, especially in terms of cash flows.

Growth is also expected to come from expansion. The Kalinganagar plant is ramping up, which should add to volumes. The company is also adding 0.75 million tonnes of Electric Arc Furnace capacity, which is important from both efficiency and future-readiness perspective.

Different sectors, similar comfort

What’s interesting is that despite being in completely different industries, both companies are offering something similar right now and that is a bit more clarity.

JSW Energy is trying to smoothen out its earnings, while Tata Steel is leaning on stable demand and expansion to drive growth. That’s exactly the kind of visibility investors tend to prefer when the broader market feels uncertain.

So, what should investors watch?

For JSW Energy, it will come down to execution. Can the company actually deliver on its 30 GW target, and can it keep earnings stable along the way?

For Tata Steel, the big question is demand both in India and in Europe. Expansion plans are in place, but how quickly they translate into higher volumes will matter.

For now, both stocks seem to have enough going for them to stay on the radar. Whether they deliver on expectations is something the market will keep a close eye on in the months ahead.