SJVN Ltd – Overview
SJVN Ltd is engaged in the business of Electricity generation. The company is also engaged in the business of providing consultancy for hydropower projects. It was established in 1988. SJVN Limited has diversified operations into other sectors such as thermal power, renewable energy, and transmission systems. They are involved in the development of solar power projects, wind power projects, and thermal power projects. SJVN Limited’s also extending its operation outside India, with international projects in countries like Nepal, Bhutan, and Afghanistan.
Today, the company has signed the Project Development Agreement (PDA) for the 669 MW Lower Arun Hydro Electric Project in the Sankhuwasabha and Bhojpur districts of Nepal. The Project shall be constructed in five years for Rs 5,792 crore with a tariff of Rs 4.99 per unit. The project will be developed on a BOOT basis and post-completion it will generate 2,901 million units of energy annually. The Company won the project through International Competitive Bidding in February 2021 and the MoU was signed in July 2021.
A tail race development of the 900 MW Arun 3 HEP project will not have any reservoir or dam and will operate as Tandem Operation System with Arun-3 Project. In addition to this, the Company is also developing a 217 KM long associated Transmission Network for power evacuation and export to India.
Presently, the Company is executing three hydro projects of 2,059 MW in Nepal. 900 MW Arun3 HEP is in an advanced stage of construction and 490 MW Arun-4 HEP will be developed in Joint Venture mode by the Company and Nepal Electricity Authority. The Company is targeting 5,000 MW projects in Nepal by 2030.
SJVN Stock & Financial Performance
Today SJVN Stock opened flat at Rs 35.78 and closed at Rs 35.50, 0.78% down. Its 52-week high and low are Rs 42.25 and 25.50. The total market cap of the company is Rs 13950.77 Crore. In the last 1-year stock has given an absolute return of 29% and 63% in the last three years. Promotor holding in the company is 86.77% while FIIs and DIIs hold 1.75% and 4.06%, respectively.
In FY23 company’s revenue surged by 21.57% from Rs 2417 crore to Rs 2938 crore while operating profit is Rs 2220 crore with a margin of 76%. The company’s net profit stood at Rs 1359, 37% up from Rs 990 crore last year with a margin of 46%. It has a PE of 10.31 times whereas ROE and ROCE are 10.2% and 9.05% respectively. Stock is trading at 1.01 times its Book Value.
They are actively participating in the bidding process for the development of hydropower projects to expand their operations worldwide. This company has more potential to win new orders in upcoming future. Investors must keep this company on the radar.