69,661 MW project portfolio: This multibagger power company signs PPAs worth Rs 7,000 crore with Punjab State Power Corporation Ltd!
The stock is up by 80 per cent in just 6 months and gave multibagger returns of over 110 per cent in 1 year.
SJVN Ltd informed that SJVN Green Energy Limited (A wholly owned subsidiary of SJVN Limited) has signed two Power Purchase Agreements (PPAs) with Punjab State Power Corporation Limited (PSPCL), one for 200 MW solar project(s) to be developed anywhere in Punjab and other for 1,000 MW solar project(s) to be developed anywhere in the country. These projects shall be developed within 18 months on a build-own-and-operate basis and will involve an investment of around Rs 7,000 crore.
The Letter of Intent for these 1,200 MW projects was received from PSPCL on July 21, 2023. The projects are expected to generate 2,997 million units in the first year and about 69,661 million units cumulatively over a period of 25 years. The commissioning of these projects shall reduce more than 34 lakh tonnes of carbon emissions.
Previously, the company signed MoA for implementing five hydro projects in Arunachal Pradesh. Five projects are 3097 MW Etalin, 680 MW Attunli, 500 MW Emini, 420 MW Amulin and 400 MW Mihumdon. Further, 3097 MW Etalin HEP is the largest hydro project under development in India with a total investment of Rs 50,000 crore.
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. This power company has a market cap of over Rs 22,000 crore with a 3-year CAGR of 38 per cent.
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On Monday, shares of SJVN Ltd surged 3.40 per cent to Rs 57.54 with an intraday high of Rs 57.80 per share and an intraday low of Rs 54.80. The stock has a PE of 19x whereas the sectoral PE is 30x.
The stock is up by 80 per cent in just 6 months and gave multibagger returns of over 110 per cent in 1 year. Investors should keep an eye on Mid-Cap power company under their watchlist.
Disclaimer: The article is for informational purposes only and not investment advice.