Shares of SJVN (Satluj Jal Vidyut Nigam) surged 3.8 percent on Monday, March 20, after the company announced that its green energy subsidiary has bagged a 200MW solar project entailing an investment of ₹1,000 crore in Maharashtra.
During Monday’s trade, the stock opened at a price of Rs. 31.40 per share against the previous close of Rs. 30.95 per share and grew further during the early trading session to touch an intraday high of Rs. 32.15.
It was trading at ₹31.40 apiece, up by 1.45 percent, at 11:20 a.m. on the NSE.
The stock touched a 52-week high of Rs. 42.35 on December 05, 2022, and a 52-week low of Rs. 25.45 on May 26, 2022, indicating that at the current level, the stock is trading over 23 percent above its 52-week low and 25.8 percent below its 52-week high.
The stock has declined almost 3 percent in the last six months. However, in the last one year, it has yielded a positive return of nearly 14 percent. In the past five years, the stock has dipped nearly 5 percent.
This project is expected to generate 455.52 million units (MU) in its first year, contributing to the government's mission of 500 GW of renewable capacity by 2030. This project will reduce 5,13,560 tonnes of carbon emission and is projected to generate a cumulative energy of 10,480.82 MU over 25 years.
“Wholly-owned subsidiary of the company SJVN Green Energy Ltd (SGEL) received a Letter of Award from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for 200 MW solar power project to be developed anywhere in Maharashtra,” an official filing stated.
The project shall be constructed in a period of 18 months which shall be reckoned from the date of signing of PPA (power purchase agreement) with MSEDCL.
Earlier, Nand Lal Sharma, Chairman & Managing Director of SJVN, announced that the company has signed a Memorandum of Understanding (MoU) with Indian Oil Corporation Limited (IOCL) for the formation of a joint venture (JV). The JV company will focus on the development of renewable energy projects including solar, wind, hydro and hybrid power projects.
SJVN reported a 22.4 percent increase in its profit after tax for the quarter that ended in December 2022. The company reported a profit of ₹287.4 crore, up from ₹235.5 crore in the corresponding quarter last year.
SJVN Limited is an India-based company, which is principally engaged in the generation of electricity and operates through the generation and sale of power segment. Its businesses include thermal power, hydro power, wind power, solar power, power transmission, consultancy and power trading.
According to a MintGenie poll, 3 analysts on an average have a ‘STRONG BUY’ call on the stock.
