JSW Energy (JSWEL) has reported Rs26.8bn revenue in 4QFY16 registering 22.6% yoy growth, in line with our estimate backed by increased generation capacity. Recent acquisition of 1,391MW hydel capacity aided led to total 4,531MW generation capacity from 3,140MW that aided good revenue performance. Its EBITDA grew 27.7% yoy to Rs11.3bn but reported PAT declined 6.1% yoy in line with our estimates due to higher interest cost (up 61.7% yoy), depreciation costs (up 33.9% yoy) and loss in hydro assets (Rs730mn). At current valuation of 1.0x P/B its FY18E, provides margin of safety. Thus, we reiterate our BUY recommendation...