Shares of a renewable energy company notched 7.31% gains to reach an intraday high of ₹ 82.25 apiece on the National Stock Exchange (NSE). This happened after the company announced that it had signed a MoU for projects worth ₹ 1,18,826 Crore. Its shares were trading at ₹ 82.00 apiece at 12:18 PM.
SJVN Ltd informed the bourses that the company has e signed a Memorandum of Understanding (MoU) with Power Finance Corporation (PFC) for providing financial assistance to various diversified portfolios of projects including majorly Renewable Energy projects and thermal generation projects to be set up at total project cost of about ₹ 1,18,826 Crore.
It said that the term loan financial assistance is tentatively proposed at 70% of the project cost, which may be increased for renewable energy projects as per project requirements.
SJVN is engaged in the business of generation of electricity (hydro, wind and solar) and the tariff for power generation. Moreover, it provides consultancy and transmission.
The company’s share price increased by a whopping 165.80% in the past six months, to deliver multibagger returns. Therefore, if an investor had invested ₹ 1 lakh in the company’s shares six months ago, the value of their holdings would have been ₹ 2.65 lakhs today!
With a market capitalization of ₹ 30,087 crores, SJVN is a mid-cap company. It has a low return on equity of 7.48% and a debt-to-equity ratio of 1.01. Moreover, it has a dividend yield of 2.31%. Its shares were trading at a price-to-earnings ratio (P/E) of 29.45, which is higher than the industry P/E of 17.59, indicating that the stock might be overvalued as compared to its peers.
The company’s promoters hold an 86.77% stake in it, followed by retail investors with 7.51%, mutual funds with 4.08%, foreign institutions with 1.40% and other domestic institutions with 0.24%.
Written by Simran Bafna
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