The shares of this green energy company rose around 5 percent to an intraday high price of ₹130.80 per share after the company’s renewable arm, SJVN Green Energy, received the Letter of Intent (LOI) for a 200 MW solar project in Gujarat.
SJVN Ltd is a large-cap stock, with a market capitalization of ₹49,986 crores, At 12:50 p.m, the company shares were trading at ₹126.85 on the National Stock Exchange from the previous close.
SJVN Green Energy Limited (SGEL), the renewable energy division of SJVN, has been awarded the Letter of Intent (LOI) by Gujarat Urja Vikas Nigam Limited (GUVNL) for a 200 MW solar project in GUVNL Phase–XXIII. The construction and development costs for this project amount to ₹1100 crore.
The project is proposed to be constructed within the Gujarat State Electricity Corporation Limited (GSECL) Solar Park at Khavda and is expected to be commissioned within 18 months from the signing date of the Power Purchase Agreement (PPA).
Previously, SJVN, a subsidiary of SJVN Green Energy Limited, secured a 200 MW Solar Project via tariff-based competitive bidding at a rate of ₹ 2.66 per unit on a Build Own and Operate (BOO) basis.
SJVN is operating primarily in the non-fossil-based fuel segment, thus contributing to India’s pledge to be a net zero-carbon emission country by 2070. Currently, ~39% of the total project portfolio is Solar Powered Projects.
SJVN is a Mini Ratna stock that is engaged in the business of electricity generation. The company is also engaged in the business of providing consulting for hydropower projects.
The company’s annual revenue saw a slight decrease of 1.7 percent, moving from ₹552 crores in Q3 FY23 to ₹543 crores in Q3 FY24. Moreover, the net profit declined by 52 percent from ₹287 crores to ₹139 crores over the same period.
SJVN shares have delivered a multibagger return of 312 percent in the last 12 months. A shareholder investment of ₹1 lakh in the company would be worth ₹4.12 in the last 12 months.
Written by Omkar Chitnis
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