LIC-Backed Power Generation Stock Rocketed 8.7 Per Cent with 3 Times Spurt in Volume as Company Announces Stellar Quarterly Results (Q1FY25)
As of June 2024, the Life Insurance Corporation of India (LIC) owns 2.26 per cent while FIIs & DIIs increased their stake in June 2024 compared to March 2024.
On Wednesday, shares of SJVN Ltd rocketed 8.7 per cent to an intraday high of Rs 148.85 per share from its previous closing of Rs 136.95 per share with a spurt in volume by more than 3 times on BSE. The stock’s 52-week high is Rs 170.45 and its 52-week low is Rs 52.69.
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 55,000 crore and has been maintaining a healthy dividend payout of 65.4 per cent
According to Quarterly Results, the net sales increased by 29 per cent to Rs 870.37 crore and net profit increased by 30 per cent to Rs 377.38 crore in Q1FY25 compared to Q1FY24. 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.
The Company's Board of Directors has approved two key financial strategies. Firstly, they have given preliminary approval to monetize a portion of the anticipated revenue or return on equity generated by the Nathpa Jhakri Hydro Power Station through securitization. Secondly, the Board has also granted initial approval to potentially reduce the Company's ownership in its wholly-owned subsidiary, SJVN Green Energy Limited, subject to necessary clearances from the Ministry of Power and the Department of Investment and Public Asset Management.
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Earlier, SJVN Limited successfully launched its 90 MW Omkareshwar Floating Solar Project in Khandwa, Madhya Pradesh, marking its entry into the floating solar power sector. This significant project, developed by its subsidiary SJVN Green Energy Limited, represents a substantial investment of Rs 646.20 crores and is anticipated to generate 196.5 million units of electricity annually, contributing an additional Rs 64 crores to the company's revenue. With this addition, SJVN's total installed capacity reaches 2,466.50 MW, positioning the company as a major player in the floating solar domain, particularly in Central and North India. This achievement is part of SJVN's broader strategy to expand its renewable energy portfolio, which complements its existing strengths in hydro, pumped storage, and thermal power, with a total project pipeline of 56,802.40 MW.
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.
As of June 2024, the Life Insurance Corporation of India (LIC) owns 2.26 per cent while FIIs & DIIs increased their stake in June 2024 compared to March 2024. The stock gave multibagger returns of 150 per cent in just 1 year while the BSE Sensex Index is up by 21 per cent. Investors should keep an eye on this power stock.
Disclaimer: The article is for informational purposes only and not investment advice.
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