50,000-MW capacity by 2040: Multibagger power generation stock gains over 7 per cent as it signs power usage agreement with Jammu & Kashmir Power Corporation Ltd
The stock gave multibagger returns of 112 per cent in 6 months while the BSE Sensex Index is 13 per cent.
Satluj Jal Vidyut Nigam Limited (SJVN Ltd) informed that the wholly owned subsidiary of the company i.e., SJVN Green Energy Limited (SGEL) has signed the power usage agreement (PUA) with Jammu & Kashmir Power Corporation Limited (JKPCL) at Jammu for 300 MW solar power capacity.
Further, this 300 MW power shall be supplied to JKPCL from the under-construction 1,000 MW Bikaner Solar project which is being developed under the CPSU Scheme of Indian Renewable Energy Development Agency Ltd (IREDA) for Rs 5,491 crore. The project is being developed under the Domestic Content Requirement (DCR) mode and is slated for commissioning by July 2024.
Earlier, SJVN Green Energy Limited, a wholly-owned subsidiary of the company, successfully commissioned its 50 MW Gujrai Solar Power Project in Kanpur, Uttar Pradesh. Secured through a competitive bidding process at a tariff of Rs 2.98 per unit, the project is backed by a 25-year Power Purchase Agreement with Uttar Pradesh Power Corporation Limited. With a construction cost of Rs 281 crore, the project is expected to generate 107 million units (MUs) in the first year and a cumulative 2,477 MUs over 25 years.
Power from this project is for Govt use either directly or through Discom. The company is on rapid progression to achieve its shared vision of 25,000 MW by 2030 & 50,000 MW by 2040. This shared vision has been formulated in sync with the commitment of the Government of India to generate 50 per cent of energy from non-fossil fuel-based energy resources 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 72 per cent with a dividend yield of Rs 4.38 per cent. The company reported positive numbers in its Quarterly Results (Q2FY24) & and half-yearly results (H1FY24) for the year ended September 30, 2023.
Today, shares of SJVN Ltd gained 7.15 per cent to an intraday high of Rs 127.55 per share from its previous closing of Rs 119. At the closing bell, shares of the company were trading at Rs 120.10 per share, up 0.92 per cent. This company has a market cap of over Rs 47,000 crore with a 3-year CAGR of 50 per cent. The stock gave multibagger returns of 112 per cent in 6 months while the BSE Sensex Index is 13 per cent.
Disclaimer: The article is for informational purposes only and not investment advice.
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