JP Power shares slump 9% after two day rally; what technical charts signal now
Shares of Jaiprakash Power Ventures Ltd (JP Power) slipped in Friday's trade, pausing their two-day sharp upward movement. The stock declined 8.51 per cent to hit a day low of Rs 19.79.
The counter was buzzing recently following an update indicating that creditors of its associate company, Jaiprakash Associates Ltd (JP Associates), unanimously voted in favour of Adani Enterprises Ltd's resolution plan.
The decision came after an electronic auction held in September, where Vedanta had initially emerged as the highest bidder with a Rs 17,000 crore offer for the debt-laden JP Associates. However, lenders reportedly opted for Adani Enterprises, with higher upfront payments cited as the key factor behind the selection.
In a separate exchange filing, the company recently disclosed that its Non-Executive Chairman, Manoj Gaur, has been arrested by the Enforcement Directorate (ED) under provisions of the Prevention of Money Laundering Act (PMLA), 2002.
JP Power clarified that the alleged offence is unrelated to JP Power and pertains instead to Jaypee Infratech Ltd (JIL) -- now acquired by Suraksha Realty under an NCLT-approved resolution plan -- and JP Associates, which has been under CIRP since June 3, 2024.
Technically, Ravi Singh, Chief Research Officer at Mastertrust, said the stock could hit Rs 25 level in the near term. He advised keeping a stop loss at Rs 19.
The stock traded above its 5-, 10-, 20-, 30-, 50-, 100-, 150-day and 200-day simple moving averages (SMAs). The counter's 14-day relative strength index (RSI) stood at 63.81. A level below 30 is defined as oversold while a value above 70 is considered overbought.
According to BSE data, JP Power commanded a standalone/consolidated price to earnings (P/E) ratio of 18.83/18.77, with a price to book (P/B) value of 1.16. Its earnings per share (EPS) stood at 1.08, while the company reported a return on equity (RoE) of 6.17 per cent. Trendlyne data showed a one-year beta of 1.1, indicating average volatility.
As of September 2025, promoters held a 24 per cent stake in the firm.
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