Shares of this mid-cap power stock jumped up to 10 percent today after the announcement of multiple Hydro Projects. In the last five trading sessions, the scrip has jumped close to 30 percent from Rs 46.65 to the current price level.
The stocks of SJVN Limited, a Mini Ratna company, are currently trading at Rs 60.35 apiece. The company’s scrip witnessed an intra-day high of Rs 62.70, also marked as the fresh 52-week high level, indicating a gain of approximately 10 percent as compared to the previous closing levels of Rs 57.10.
The stock prices soared after the company, in a regulatory filing with the Bombay Stock Exchange (BSE), announced the receipt of five ‘Hydro’ Projects of 5097 Megawatts (MW) from the Government of Arunachal Pradesh. The Projects allocated are 400 MW Mihumdon, 420 MW Amulin, 500 MW Emini, 680 MW Attunli, and 3097 MW Etalin.
The project’s development will involve an investment of more than Rs 50,000 crores. Moreover, the construction of the projects mentioned above will lead to a reduction in carbon emissions of around 1.1 million tonnes per year.
Historically, the company has reported decent growth in financials with the operating revenues increasing from Rs 2,417 crores during FY21-22 to Rs 2,938 crores during FY22-23, and, after-tax profits, during the same time period, shifting from Rs 985 crores to Rs 1,355 crores.
Coming onto the profitability ratios, the basic ones such as the return on equity (RoE) moved up from 7.51 percent during FY21-22 to 9.80 percent in FY22-23, and, the return on capital employed (RoCE) took a shift marginally from 7.46 percent to 7.76 percent keeping the timeframe the same.
Founded in 1988, SJVN Limited is a company based in India that is principally engaged in the business of the generation of electricity. The business segments of the company include wind power, hydro power, thermal power, power trading, and many more.
Written by Amit Madnani
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