Shares of this Mini Ratna stock jumped 13 percent today due to multiple developments taking place in the company. The company’s stock has given close to multibagger returns of 98 percent in the past one-year period, i.e., from Rs 28.45 to the current price level.
The stocks of SJVN Limited are trading in the green today and currently trade at Rs 56.40, zooming around 13 percent as compared to the previous closing levels of Rs 50.15 apiece. The company’s stock hit its new 52-week high at a price of Rs 57.20.
The stock prices were on the rise today due to a couple of developments in the company. Firstly, the company received a Letter of Intent (LoI) from the Punjab State Power Corporation Limited (PSPCL) pertaining to the procurement of 1200 Megawatts (MW) Solar Power. The same has a tentative cost of Rs 7,000 crores.
In addition to the above, the company’s Board approved the acquisition of “Cross Border Power Transmission Company Limited” (CPTC), a Joint Venture (JV) company involved in the electricity industry, for consideration of approximately 19 crores. SJVN Limited already holds a 26 percent stake in CPTC. The acquisition is subject to some regulatory approvals from the National Company Law Tribunal (NCLT).
Having a glance at the financials of the company, the basic indicators such as the operating revenues, as well as net profits, have increased with the former moving from Rs 2,417 crores during FY21-22 to Rs 2,938 crores in FY22-23, and, the latter taking a shift from Rs 985 crores to Rs 1,355 crores.
The net profit margins, in congruence with the pattern sown above, moved up from 40.76 percent during FY21-22 to 46.11 percent in FY22-23. The profitability metric such as return on equity (RoE) went up from 7.51 percent to 9.80 percent during the same time horizon.
SJVN Limited is involved in the business of generating as well as selling power. It is implementing power projects in Uttarakhand, Himachal Pradesh, Gujarat, and many other places in India. It operates in business pertaining to the generation of wind power, thermal power, etc.
Written by Amit Madnani
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