Low PE stock below Rs 50: This power company receives order worth Rs 1,200 crore!

The stock has a PE of 10.80x whereas the sectoral PE is 22x.   

SJVN Ltd informed that the company has obtained a 200 MW grid-connected solar power project in Khavda Solar Park through an e-Reverse auction conducted by Gujarat Urja Vikas Nigam Limited (“GUVNL”). The Company bagged the full quoted capacity of 200 MW at Rs 2.88 per unit on build own and operate basis under open competitive tariff bidding by GUVNL.   

This solar project shall be developed by the Company in Khavda Solar Park, Gujarat. The tentative cost for the development of this project shall be approx. Rs 1,200 crore. The project is expected to generate 505 million units in 1st year of commissioning and cumulative energy generation over a period of 25 years would be around 11,756 million units. Further, the commissioning of the project is expected to reduce 5,76,067 tonnes of carbon emissions. 

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SJVN is engaged in the business of electricity generation. The company is also engaged in the business of providing consultancy for hydropower projects.   

In Q3FY23, net sales rose by 1 per cent and net profit rose by 23 per cent over Q3FY22. The company has been maintaining a healthy dividend payout of 58.4 per cent. This power company has a market cap of over 14,000 crore with a 3-year CAGR of 21 per cent. The stock has a PE of 10.80x whereas the sectoral PE is 22x.   

Today, shares of SJVN Ltd plunged 1.97 per cent to Rs 37.41 with an intraday high of Rs 38.95 and an intraday low of Rs 37.15. The shares of the company saw a spurt in volume by more than 1.23 times on BSE.  

Investors should keep an eye on Mid-Cap power company under their watchlist.