President of India-Backed Power Generation Stock Jumps After Signing MoU With Energy Department, Government of Rajasthan
The stock is up by 37.52 per cent from its 52-week low of Rs 80.17 per share year.
On Friday, shares of SJVN Ltd surged 6.52 per cent to an intraday high of Rs 110.25 per share from its previous closing of Rs 103.50 per share. The stock’s 52-week high is Rs 170.45 and its 52-week low is Rs 80.17.
SJVN Ltd has signed a Memorandum of Understanding (MoU) with Energy Department, Government of Rajasthan to spearhead the development of renewable energy in the state. In the august presence of Hon’ble Chief Minister of Rajasthan, Sh. Bhajan Lal Sharma, the MoU was signed by Sh. Akhileshwar Singh, Director (Finance) SJVN and Sh. Om Kasera, Managing Director RRECL. Under the MoU, SJVN would develop 5 GW Pumped Storage Projects and 2 GW Floating Solar Projects in the state. Both the parties have agreed to collaborate for development of renewable energy on long term basis.
Earlier, SJVN and Maharashtra government signed MoUs for 8,100 MW Pumped Storage Projects and a 505 MW Floating Solar Project. The projects will be developed in phases and have a total estimated investment of Rs 48,000 crore.
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 40,000 crore and has been maintaining a healthy dividend payout of 65.4 per cent.
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According to Quarterly Results, the net sales increased by 16.8 per cent to Rs 1,026.25 crore and net profit increased by 0.1 per cent to Rs 438.88 crore in Q2FY25 compared to Q2FY24. Looking at its half-yearly results, the net sales increased by 22.1 per cent to Rs 1,896.62 crore and net profit increased by 12.1 per cent to Rs 795.07 crore in H1FY25 compared to H1FY24. 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 September 2024, the Life Insurance Corporation of India (LIC) owns 2.48 per cent stake and DIIs increased their stake to 4.29 per cent in September 2024 compared to June 2024. The stock is up by 37.52 per cent from its 52-week low of Rs 80.17 per share year. Investors should keep an eye on this power stock.
Disclaimer: The article is for informational purposes only and not investment advice.