LIC-Backed Power Generation Stock Jumps 7 Per Cent As Company Signs MoUs worth Rs 48,000 Crore with Government of Maharashtra
The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 63.38 per share year.
On Friday, shares of SJVN Ltd jumped 7 per cent to an intraday high of Rs 134.80 per share from its previous closing of Rs 126 per share with a spurt in volume by more than 4 times on BSE. The stock’s 52-week high is Rs 170.45 and its 52-week low is Rs 63.38.
SJVN Limited a Navratna CPSE, has signed two landmark Memorandums of Understandings (MoUs) with the Government of Maharashtra for the development of Pumped Storage Projects (PSPs) and Floating Solar Projects (FSPs) in the state of Maharashtra. The MoUs were signed today in Mumbai in the esteemed presence of Hon'ble Deputy Chief Minister and Energy Minister of Maharashtra, Sh. Devendra Fadnavis.
The first MoU was inked between SJVN and the Department of Water Resources, Government of Maharashtra, for development of five Pumped Storage Projects of total capacity of 8100 MW. This MoU was signed by Sh. Sushil Sharma, Chairman and Managing Director of SJVN and Sh. Deepak Kapoor (IAS), Additional Chief Secretary, Water Resources Department, Government of Maharashtra.
The second MoU was signed between SJVN and Maharashtra State Power Generation Company (MAHAGENCO) for the development of 505 MW Floating Solar Project at Lower Wardha Dam in Maharashtra. The MoU was signed by Sh. Sushil Sharma, Chairman and Managing Director of SJVN and Dr. P. Anbalagan (IAS), CMD, MAHAGENCO.
Hon’ble Dy. Chief Minister of Maharashtra congratulated SJVN, MAHAGENCO & Water Resource Department on achieving this major milestone and extended full support of the Government of Maharashtra for ensuring the timely execution and completion of these projects. The Dy. Chief Minister further stated that these MoUs will mark a new chapter in Maharashtra's energy infrastructure journey.
The 505 MW Floating Solar Project will be developed in two Phases. The First Phase will be 100 MW and Second Phase will be 405 MW. The phased development will ensure optimal use of existing power evacuation infrastructure and will provide a sustainable and reliable energy source for the region.
The 8,100 MW Pumped Storage Projects include 800 MW Kolmondapada, 1500 MW Sidgarh, 2000 MW Chornai, 1800 MW Baitarni and 2000 MW Jalvara Pumped Storage Projects. This MoU will facilitate SJVN to undertake Survey & Investigation, preparation of DPR and further establishment of the aforesaid projects in Maharashtra in a time-bound manner as per the prevailing rule/policies/schemes of the Central/ State Government. The PSPs will play a critical role in energy storage, grid stabilization and meeting the peak electricity demand, ensuring reliable and clean energy for the state of Maharashtra.
The total estimated investment on these projects will be to the tune of Rs 48,000 crores and will generate approx. 8,400 direct and indirect employment opportunities. The projects will also support eco-tourism and skill development initiatives which will benefit the local communities.
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About the Company
SJVN, formerly known as Satluj Jal Vidyut Nigam Ltd, is an Indian public sector undertaking involved in hydroelectric power generation and transmission. It was incorporated in 1988 as Nathpa Jhakri Power Corporation, a joint venture between the Government of India and the Government of Himachal Pradesh. The company has a market cap of over Rs 52,000 crore and has been maintaining a healthy dividend payout of 65.4 per cent.
According to Quarterly Results, the net sales increased by 29 per cent to Rs 870.37 crore and net profit increased by 30 per cent to Rs 377.38 crore in Q1FY25 compared to Q1FY24. In its annual results, the net sales decreased by 12.2 per cent to Rs 2,579.37 crore and net profit decreased by 33 per cent to Rs 907.25 crore in FY24 compared to FY23.
As of June 2024, the Life Insurance Corporation of India (LIC) owns 2.26 per cent while FIIs & DIIs increased their stake in June 2024 compared to March 2024. The stock gave multibagger returns of over 100 per cent from its 52-week low of Rs 63.38 per share year. Investors should keep an eye on this power stock.
Disclaimer: The article is for informational purposes only and not investment advice.