On Wednesday, the share price of the company rose by 4.4 percent to its intraday high of Rs 95.6 per share from its previous close of Rs 91.55 after the company secured a 100 MW Project through an auction conducted by Gujarat Urja Vikas Nigam Limited (GUVNL).
According to the filing of SJVN Limited, the company has secured a 100 MW solar power project in an e-auction by Gujarat Urja Vikas Nigam Limited (GUVNL) for Rs 2.63 per unit.
This project will be developed for Rs 550 crore by their subsidiary SJVN Green Energy Limited (SGEL) and will generate 25.2 crore units in its first year. SJVN’s renewable energy portfolio now stands at 5,090.5 MW, bringing them closer to their goal of 12,000 MW by 2026.
Looking at the financials of SJVN Limited, net revenue decreased by 0.01 percent year on year, from Rs 878.48 crore in Q2FY23 to Rs 878.36 crore in Q2FY24. Their revenue rose 30 percent sequentially from Rs 675 crore in Q1FY24 to the current levels.
Furthermore, the company’s net profit increased by 1.1 percent year on year, from a net profit of Rs 445 crores in Q2FY23 to a net profit of Rs 440 crores in Q2FY24. Their profit increased by 61 percent sequentially from Rs 272 crore in Q1FY24 to current levels.
The share price of the company has risen by 125 percent in the last six months and 165 percent in the year to date. For instance, if an investor invested Rs 1 Lakh a year ago the current value of the investment would be 2.65 lakhs.
SJVN Ltd is a midcap with a market capitalization of Rs 36,488 crores and the company has a low price-to-earnings ratio of 32 compared to its peers, a return on equity of 10 percent, a return on capital employed of 9 percent, and a net profit margin of 46 percent.
The promoter owns 82 percent of the company, 11 percent is owned by the general public, 1 percent is owned by a foreign institutional investor, and 6 percent is owned by domestic institutional investors.
SJVN Limited is an Indian company that primarily generates electricity and charges power generation tariffs. Electricity generation (hydro, wind, and solar), consulting, and transmission are the three main products and services offered by the company.
Written by Sriram KV
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