Shares of this renewable energy company jumped around 3 percent in Monday’s trading session after they launched the Gurhah solar power project in Jalaun, Uttar Pradesh. The shares have delivered a multibagger return of 119 percent to its shareholders in 6 months.
With a market capitalisation of Rs. 36,504 crores, SJVN Ltd shares started Monday’s trading session on a higher note at Rs. 94 compared to its previous close of Rs. 90.95. The share hit a high of Rs. 94.20, gaining around 3 percent and are currently trading at Rs. 92.80 apiece.
Such a positive movement in the share price was observed after the company in an exchange filing informed that SJVN Green Energy Ltd, a wholly owned subsidiary of SJVN Ltd has commissioned and achieved COD of its 75 MW Gurhah Solar Power Project located in Uttar Pradesh.
The company secured this project at a rate of Rs 2.98 per unit and the agreement for power purchase, spanning 25 years, was been finalized with Uttar Pradesh Power Corporation (UPPCL). The collaboration with UPPCL will ensure a stable arrangement for supplying solar power to meet the energy needs in Uttar Pradesh for an extended period.
Furthermore, the cost of construction or development of this project is set to be Rs. 408.42 crores. Moreover, this project will generate 159.77 Million Units (MU) in the first year and the estimated cumulative energy generation over 25 years shall be 3716 Million Units (MU). This will further result in revenues of around Rs. 48 crores per annum for the company.
Digging into the company’s financial statement, the revenue zoomed by 30 percent from Rs. 675 crores during the June quarter to Rs. 878 crores in the September quarter. In addition, the net profits magnified by 62 percent from Rs. 272 crores to Rs. 440 crores during the same timeframe.
As of December 2023, With the commissioning of this Gurhah Solar Power Project, the total Installed Capacity of SJVN is now 2227 MW. Moreover, the company is planning to add 10,000 megawatts of energy in the next three years through more than 50 projects in hydro, thermal, solar, and wind. As of September,23, SJVN has an annual capex target of Rs. 10,000 crores to fulfil the future objectives of the company.
Headquartered in Shimla, SJVN was incorporated in 1988. The company is engaged in the business of Electricity generation and also engaged in the business of providing consultancy for hydropower projects.
Written By Vaibhav Patil
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