SJVN (Satluj Jal Vidyut Nigam) witnessed a 6.4 percent surge in its shares on Wednesday, June 07, following the announcement that its subsidiary, SJVN Green Energy Limited, had received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL).
The LOI pertains to a 100 MW grid-connected wind power project in Gujarat. In May, SJVN Green Energy Limited secured the 100 MW wind project through an open competitive tariff bidding process. The project was awarded at a tariff rate of ₹3.17 per unit.
SJVN Limited is an India-based company, 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.
During Wednesday’s trade, the stock opened at a price of Rs. 36.05 per share against the previous close of Rs. 35.90 per share and grew further during the early trading session to touch an intraday high of Rs. 38.20.
It was trading at ₹37.80 apiece, up by 5.89 percent, at 10:50 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 June 20, 2022, indicating that at the current price, the stock is trading over 48 percent above its 52-week low and 10.7 percent below its 52-week high.
The stock has declined almost 4 percent in the last six months. However, in the last one year, it has yielded a return of nearly 33 percent. In the past five years, the stock has grown over 26 percent.
According to Nand Lal Sharma, the chairman of SJVN, the estimated cost of developing the wind power project in Gujarat is ₹800 crore. The project will follow the Build Own and Operate (BOO) model and will be executed through an Engineering, Procurement, and Construction (EPC) contract.
“A Power Purchase Agreement (PPA) will be finalized between GUVNL and SJVN in the near future. The project is estimated to generate approximately 281 million units of energy in its first year of operation," Sharma mentioned.
Last week, SJVN signed a project development agreement worth ₹5,792 crore to develop the 669 MW Lower Arun Hydro Power project in Nepal. The agreement was finalised in the presence of Indian Prime Minister Narendra Modi and Nepalese Prime Minister Pushpa Kamal Dahal.
At present, the company is actively involved in the execution of three hydro projects totaling 2,059 MW in Nepal.
According to a MintGenie poll, 3 analysts on an average have a ‘STRONG BUY’ call on the stock.