March 14, 2012 / 8:38 AM / 5 years ago

MARKET EYE-JSW Energy hit by Goldman's 'Sell' call

MUMBAI, March 14 (Reuters) - Shares in power producer JSW Energy fell 1.3 percent to 67.10 rupees after Goldman Sachs downgraded the stock to 'Sell' from 'Neutral' citing high valuations and doubts about volume growth beyond fiscal 2013.

Goldman said the 71 percent surge in JSW's shares this year were unjustified given the company would not necessarily benefit from the government's push to improve the availability of domestic coal supplies -- a main factor the bank said was behind the rally.

The bank also cited doubts about JSW's earnings as well as its current valuation versus its peers, and cut the power producer's sum-of-the-parts target price to 44 rupees from its prior 45 rupees forecast.

Reporting by Manoj Dharra

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