Multibagger PSU Stock Touched 20% Upper Circuit On New Solar Project Deal

The shares of SJVN Ltd. touched 20% upper circuit of Rs 76.80 apiece on Monday, September 11, after the company's wholly owned subsidiary SJVN Green Energy Limited (SGEL) signed a power purchase agreement (PPA). The company informed about the PPA on Friday, Sept 08, 2023.

SGEL has signed a PPA with the Bhakra Beas Management Board (BBMB) for the development of an 18-megawatt power project. The Project will be developed on the land parcels of Bhakra Beas in Himachal Pradesh and Punjab. The project is scheduled to be commissioned by August 2024.

The company secured the project through open competitive bidding at a tariff of Rs 2.63 in the e-reverse auction that was organised by the Punjab Energy Development Agency.

The power project is expected to generate 39.42 million units of energy in a single year of operation, with a total energy output of 917 million units during a 25-year period.

SJVN closed at Rs 76.80 per share, up 20% from the previous close on the BSE. The stock gained 18.15% in the past 1 week. It gave above 100% return in 3 and 6 months. In 3 months it gave 109.95% and in 6 months, it gave 134.15% multibagger returns. It gave 144.98% multibagger return in 1 year, 186.03% in 2 years, 229.61% in 3 years, and 171.86% in 5 years, respectively.

Its 52-week high is Rs 76.80 per share and its 52-week low is Rs 29.90 per share on the BSE.

SJVN Ltd. is a Miniratna Category-1 CPSE under the Ministry of Power. With a market cap of Rs 30,180.83 Crore, is a midcap power generation company.

Over the next three years, the company plans to add more than 10,000 megawatts of renewable energy capacity. The company's goal is to reach 25,000 megawatts by 2030 and 50,000 megawatts by 2040.