Shares of SJVN Ltd gained around 9 percent on Monday’s session and reached an all-time high of Rs 42.90 apiece on the NSE, Stock jumped after the government announced to set up a 500GW green power target by 2030.
According to the CNBC-TV18 report, the Central government directed all states and union territories to prepare a renewable energy plan, with a focus on land acquisition, to help achieve India’s target of 500 gigawatts (GW) of Renewable energy capacity by 2030.
The company has set a goal of achieving 50,000 MW of installed capacity by 2040, with non-fossil fuels accounting for 96% of the overall. At 3:25 pm, the stock quoted Rs 41.95, up 6.25 percent on NSE.
Satluj Jal Vidyut Nigam(SJVN), is engaged in the business of Electricity generation. The company also provides consultancy for hydro-power projects and is also engaged in power transmission and power trading.
The stock has gained 25 percent in the last 6 months ranging from Rs 33.70 and gained 60 percent in the last year.
Revenue grew modestly year on year, by 22 percent from Rs 2,417 crore in FY 21-22 to Rs2,938 crore in FY 22-23, Within the stated term, the net profit increased by 22 from Rs 985 crore to Rs 1,355 crore.
Profitability ratios have remained consistent over time. For fiscal years 22-23, the ROE was 9.80 percent and the ROCE was 7.76 percent, similarly, the net profit margin was 46.11 percent and the operating margin was 74.12 percent.
Elara Securities has given a target price of Rs 54 per share, implying a 28 percent upside from the current market levels. Analysts are bullish on India’s hydroelectric power sector, saying that it is on the cusp of a structural upturn after decades of subdued performance.
As per the shareholding pattern, promoters of the company hold an 86.77 percent stake, and Domestic Institutional Investors (DIIs) have a 4.07 percent stake in the company for FY 22-23.
Written by Omkar C
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