11.5% Dividend Payout Soon; SJVN Commissions Rs 281 Crore Solar Power Project; Buy This Miniratna Stock?

SJVN Limited, a Mini Ratna, Category-I and Schedule -'A' CPSE, is going to be in focus next week as its dividend payout to the tune of 11.5% is going to start from the first week of March. Also, the company has announced commissioning and achieving COD of its 50 MW Gujrai Solar Power Project located in the district of Kanpur, Uttar Pradesh.

SJVN Share Price:

On Friday, SJVN shares ended at Rs 119 apiece, down by 2.10% with a market cap of Rs 46,764.56 crore.

Year-to-date, SJVN shares are up by 28%, while in a year, the stock zoomed by 277.78%.

SJVN Solar Project:

In its regulatory filing on February 23, SJVN said that its wholly-owned subsidiary, SJVN Green Energy Limited ("SGEL") has commissioned and achieved COD of its 50 MW Gujrai Solar Power Project located in the district of Kanpur, Uttar Pradesh.

SGEL has bagged this 50 MW Solar Power Project at a tariff of ₹2.98 per unit through Competitive Tariff bidding was conducted by the Uttar Pradesh New & Renewable Development Agency ("UPNEDA"). The power Purchase Agreement for the same has been signed with Uttar Pradesh Power Corporation Limited ("UPPCL") for 25 years.

While the cost of Construction / Development of this project is ₹281 Crores. The project will generate 107 MUs in the first year and the estimated cumulative energy generation over 25 years shall be 2,477 MUs.

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.

SJVN Dividend Payout:

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.

Should You Buy SJVN?

As per Trendlyne data, the consensus recommendation from 4 analysts for SJVN Ltd is HOLD. EPS is expected to reduce by 1.7% in FY24. Notably, SJVN Ltd.'s Revenue was higher than the average estimate 1 time in the past 2 years. However, the average target price is Rs 88 on SJVN, which is a downside of 26% ahead.

On the other hand, Antique Stock Broking has set a target price of Rs 162 on SJVN stock with a BUY recommendation. From the current price, this will imply up to 36.13% potential upside ahead.

About SJVN:

SJVN Limited, a Mini Ratna, Category-I and Schedule -'A' CPSE under administrative control of the Ministry of Power, Govt. of India, was incorporated on May 24, 1988, as a joint venture of the Government of India (GOI) and the Government of Himachal Pradesh (GOHP). 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.

Beginning with a single project and single State operation (i.e. India's largest 1500 MW Nathpa Jhakri Hydro Power Station in Himachal Pradesh), the Company has commissioned eleven projects totalling 2227 MW of installed capacity and 123 km Transmission Line. SJVN is presently implementing or operating power projects in Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, Uttar Pradesh, Punjab, Gujarat, Arunachal Pradesh, Rajasthan, Assam, Odisha, Mizoram and Madhya Pradesh in India besides neighbouring countries of Nepal.

Disclaimer: The recommendations made above are by market analysts and are not advised by either the author or Greynium Information Technologies. The author, the brokerage firm nor Greynium would be liable for any losses caused as a result of decisions based on this write-up. Goodreturns.in advises users to consult with certified experts before making any investment decision.