Brokerage SMC Global Securities has selected Navratna PSU power stock, SJVN as its fundamental pick for a trading week from November 4th to 8th.
The broker sets a Rs 129 target on SJVN for the week, which is a potential of more than 12% gains. SJVN is among the top dividend paying PSU energy stocks. In the last 12 months, the company delivered up to 18% worth Rs 1.8 dividend per share.
SJVN Ltd Share Price:
Currently, the CPSE stock is at Rs 115 apiece. The stock gained by over 1.5% on Muhurat Trading. Its market cap is around Rs 45,192.64 crore.
The stock’s 52-week high and low are at Rs 170.45 apiece and Rs 71.44 apiece respectively. Its price-to-equity ratio is at 46.81x, and its return on equity is at 6.88%.
BUY SJVN Shares:
On the valuation, SMC Global Securities report said, “The company has delivered a strong performance in Q1FY2025 and has floated tenders of 4.8 GW out of targeted 10.8 GW capacities in Financial Year ‘2024 and 2025. During the quarter, the revenue was up by 29% and with improved margin the net income was up by 31%.”
It added, “The management of the company has reiterated that the company is moving forward to achieve its vision of installing a 25,000 MW portfolio in operation by 2030 and 50,000 MW by 2040. Thus, it is expected that the stock will see a price target of Rs. 129 in 8 to 10 months’ time frame on one year averageP/BVof3.34xandFY26BVPSofRs.38.71.”
Some of the investment rationale by SMC for SJVN are:
1. SJVN is engaged in the business of electricity generation. The company is also engaged in the business of providing consultancy for hydro-power projects.
2. It was declared Navaratna status in August 2024.
3. The company aims to be a 25,000 MW company by 2030, and 50,000 MW company by 2040.
4. Presently, total project portfolio of SJVN is 56,803 MW, out of which 2,467 MW is under operation, 4,836 MW is under Construction, 16,158 MW is under Pre-construction and S&I stage and 33,342 MW capacity Projects are under allotment.
5. The company recently has inked MoUs with government of Maharashtra for development of Pumped Storage Projects (PSPs) and Floating Solar Projects (FSPs) in the state of Maharashtra. The first MoU was inked, for development of five Pumped Storage Projects of total capacity of 8100 MW and second MoU was signed for the development of 505 MW Floating Solar Project at Lower Wardha Dam in Maharashtra. The total estimated investment on these projects will be to the tune of Rs.48,000 crores.
About SJVN:
SJVN Limited, a Navratna CPSE under administrative control of Ministry of Power, Govt. f India, was incorporated on May 24, 1988, as a joint venture of the Government of India (GOI) and the Government of Himachal Pradesh (GOHP). SJVN is now a listed Company having shareholders pattern of 55.00% with Govt. of India, 26.85% with Govt. of Himachal Pradesh and rest of 18.15% with Public. The present paid up capital and authorized capital of SJVN is Rs. 3,929.80 Crore and Rs. 7,000 Crore respectively. The Net Worth as on March 31, 2024, is Rs.14,030.28 Crore.
Beginning with a single project and single State operation (i.e. India’s largest 1500 MW Nathpa Jhakri Hydro Power Station in Himachal Pradesh), the Company has commissioned fourteen projects totaling 2467 MW of installed capacity and 123 km Transmission Line. SJVN is presently implementing or operating power projects in Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, Uttar Pradesh, Punjab, Gujarat, Arunachal Pradesh, Rajasthan, Assam, Odisha, Mizoram and Madhya Pradesh in India besides neighboring country of Nepal.
