Low PE stock under Rs 50: This power company receives an order worth Rs 5,792 crore!

The stock has a PE of 10.10x whereas the sectoral PE is 28.60x.

SJVN Ltd informed that the company has signed a project development agreement (PDA) for the 669 MW Lower Arun Hydro Electric Project in Nepal. The project shall be constructed in 5 years at a cost of Rs 5,792 crore with a levelized tariff of Rs 4.99 per unit. The project will be developed on a BOOT basis and on completion it will generate 2,901 million units of energy annually. In addition to this, the company is also developing a 217 KM long associated transmission network for power evacuation and export to India.

The 669 MW Lower Arun Hydro Electric Project is in the Sankhuwasabha and Bhojpur districts of Nepal. The company won the project through International Competitive Bidding in February 2021 and the MoU was signed in July 2021. A tail race development of the 900 MW Arun 3 HEP project will not have any reservoir or dam and will operate as Tandem Operation System with Arun-3 Project.

Presently, the company is executing 3 hydro projects of 2,059 MW in Nepal. 900 MW Arun3 HEP is in the advanced stage of construction and 490 MW Arun-4 HEP will be developed in joint venture mode by the company and Nepal Electricity Authority. The company is targeting 5,000 MW projects in Nepal by 2030.

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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. The company has been maintaining a healthy dividend payout of 70 per cent. This power company has a market cap of over 14,000 crore with a 1-year CAGR of 27 per cent.

Today, shares of SJVN Ltd climbed 0.39 per cent to Rs 35.71 with an intraday high of Rs 36.62 and an intraday low of Rs 35.60. The stock has a PE of 10.10x whereas the sectoral PE is 28.60x. Investors should keep an eye on this Mid-Cap power company under their watchlist.