Synopsis:
Jaiprakash Power Ventures Limited is on the radar after proposing to set up a 50MW solar PV power plant with an investment of Rs.300 crores at its existing thermal power project site in Madhya Pradesh.
The shares of this power generation firm are engaged in coal and sand mining, cement processing, and generating both thermal and hydroelectric power, hit an upper circuit of Rs.18.96 after announcing an investment in a solar power plant for Rs.300 crores.
With a market capitalization is of Rs.12,994.16 crore, the shares of Jaiprakash Power Ventures Limited were trading at Rs.18.96, up by 4.98 percent from the previous day’s closing price of Rs.18.06.
Investment Plan
Jaiprakash Power Ventures Limited is planning to invest Rs.300 crores in setting up a 50 MW solar PV power plant on the existing 500 MW Jaypee Bina thermal power plant in Bina, Madhya Pradesh.
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About Company & Operational Front
Jaiprakash Power Ventures Limited, Part of the Jaypee Group, runs and manages the 300 MW Baspa-II Hydroelectric Project located in Kinnaur district, Himachal Pradesh. It is engaged in coal and sand mining, cement processing, and generating both thermal and hydroelectric power.
Total power generation capacity is of 2,220 MW, 1,245 MW is secured under power purchase agreements, while the remaining 975 MW is sold through short-term arrangements.
The company also has a coal production capacity of 3.92 million tonnes from the Amelia coal mine and a 1.5 million tonne fuel supply agreement for the Bina power plant. Additional coal requirements for both the Bina and Nigrie plants are fulfilled through coal e-auctions.
The company plans to invest Rs.1,500 crore over FY25 to FY27 to install FGD systems at its Nigrie and Bina thermal plants. It also plans to allocate ₹760 crore for the Bandha North coal mine over FY25 to FY29, with funding from its own earnings.
Moving on to revenue from operations slipped from Rs.1,754.7 crores in Q1FY25 to Rs.1,583.1 crores in Q1FY26. Net profit slipped from Rs.348.5 crore in Q1FY25 to Rs.278.1 crores in Q1FY26.
It has delivered a ROE and ROCE of Rs.6.58 percent and 10.3 percent. The stock’s PE is 17.56, which is below the industry PE ratio of 30.93, suggesting the share may be undervalued compared to its peers.
Written by Jhanavi Sivakumar
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