11.49% Dividend,1.46% Yield: Rs 120 PSU Power Stock In Focus; Bags 200 MW Solar Project Of Rs 1,100 Crore

Power-house SJVN Limited, a Mini Ratna, Category-I and Schedule - 'A' CPSE, will be in focus during the trading session of March 4th to 8th as it bagged a major solar power project worth Rs 1,100 crore. SJVN will also start paying its latest interim dividend of 11.5% from March 4 onward for which it turned ex-dividend last month.

SJVN shares are a multi-bagger with gains of 268.29% on BSE in a year. Its past six-monthly performance has also been robust with an upside of 87%.

SJVN's share price ended at Rs 120.90 apiece, down by 0.25% during the special session on Saturday. Its market cap stood at Rs 47,511.22 crore.

The PSU on March 3rd announced that its subsidiary, SJVN Green Energy Limited ("SGEL") bagged the full bid capacity of 200 MW capacity at a tariff of Rs 2.66 per unit. The tentative cost of Construction / Development of this project shall be around Rs 1,100 crore.

SGEL had participated in 200 MW capacity in the tariff-based competitive bidding conducted by Gujarat Urja Vikas Nigam Limited ("GUVNL") for the development of Solar Power Projects in the 1,125 MW GSECL Solar Park at Khavda, Gujarat. e-RA for this bidding was conducted by GUVNL on March 2, 2024, and SGEL won the project.

This 200 MW Solar Power Project is to be developed on Build Own and Operate (BOO) basis. The project is expected to generate about 504 MUs in the 1st year and the cumulative energy generation over 25 years would be about 11,732 MUs. As per RfS, the Project shall be commissioned in 18 Months from the date of signing of the PPA. The PPA shall be signed between GUVNL and SGEL for 25 years, as per the filing.

The commissioning of this Project is expected to reduce 5,74,868 Tonnes of carbon emission and would contribute to GoI's mission of reduction in carbon emissions.

It further said that SJVN 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% of energy from non-fossil fuel-based energy resources by 2030.

Apart from this, SJVN has announced an interim dividend of Rs 1.15/- per equity share for the Financial Year 2023-24. The stock turned ex-dividend on February 21. In percentage terms, the dividend payout is 11.5%. The payment of dividends shall start from March 4, 2024, onwards.

At the current market price, SJVN has a dividend yield of 1.46%.

SJVN is now a listed Company having a shareholders pattern of 55.00% with Govt. of India, 26.85% with Govt. of Himachal Pradesh and the rest of 18.15% with the Public. The present paid-up capital and authorized capital of SJVN are Rs. 3,929.80 Crore and Rs. 7,000 Crore respectively. The Net Worth as of 31.03.2023 is Rs.13821.97 Crore.

Presently, the total project portfolio of SJVN is 56,894.4 MW, out of which 2151.5 MW is under operation, 4378 MW is under Construction, 12803 MW is under Pre-construction and S&I stage and 37,562 MW capacity Projects are under allotment.