Miniratna Company Approves Rs 1.15 Interim Dividend: Buy To Be Eligible?

Under the administrative authority of the Ministry of Power, Government of India, SJVN Limited is a Mini Ratna, Category-I and Schedule-"A" CPSE. The company started with a single project and one State operation, which was the largest hydro power station in India at 1500 MW, the Nathpa Jhakri Hydro Power Station in Himachal Pradesh.

Since then, the company has put into operation eleven projects with a total installed capacity of 2227 MW and a 123 km Transmission Line. Power projects in Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, Uttar Pradesh, Punjab, Gujarat, Arunachal Pradesh, Rajasthan, Assam, Odisha, Mizoram, and Madhya Pradesh are now being constructed or managed by SJVN, in addition to Nepal.

SJVN Dividend

"We would like to inform that the Board of Directors in the aforesaid meeting have also approved interim dividend of Rs 1.15/- per equity share for the Financial Year 2023-24. The record date for the same is fixed on 21.02.2024. The payment of dividend shall start from 04.03.2024 onwards," said SJVN in a stock exchange filing.

SJVN Financials

According to a BSE filing, the company recorded a fall in its consolidated net profit of almost 51% to Rs 138.97 crore in the December 2023 quarter, from Rs 287.42 crore in the quarter that ended on December 31, 2022. From Rs 711.24 crore during the same time last year to Rs 607.72 crore in the quarter under review, total income decreased.

Compared to the same time in the previous fiscal year, when it was Rs 552 crore, the business's revenue from operations dropped 1.6% to Rs 543.3 crore. In the third quarter of the current fiscal year, EBITDA decreased 3.2% to Rs 368.5 crore in Q3FY24 from Rs 380.6 crore in Q3FY23. During the reporting quarter, the EBITDA margin was 67.8%, compared to 69% during the same time in the previous fiscal year.

SJVN Share Price Target

Deven Mehata - Equity Research Analyst at Choice Broking said SJVN, currently trading at 140.55 levels, has demonstrated a robust upward trajectory since its breakout above the 100 levels, showcasing substantial strength in its market performance. Notably, the stock is positioned favourably, trading above its short-term (20 Day), medium-term (50 Day), and long-term (200 Day) Exponential Moving Average (EMA) levels, affirming the prevailing bullish sentiment.

Following a commendable run-up, SJVN encountered profit booking around the 170 levels. However, the stock has established a formidable support zone near 125 levels, coinciding with the 20-day EMA. This convergence of support levels adds to the resilience of the stock, presenting a strategic entry point for investors.

Investors who entered positions at lower levels are advised to maintain their long positions, with a prudent trailing stop loss set at 124, just below the mentioned support levels, based on closing prices. This approach ensures a systematic risk management strategy.

For those considering fresh investments, entering at the current market price or on potential dips is deemed appropriate. It is recommended to implement a stop-loss mechanism to mitigate risks, safeguarding against adverse market movements. This comprehensive analysis suggests a positive outlook for SJVN, emphasizing the importance of strategic entry and risk management for investors and traders alike.

Disclaimer

The recommendations made above are by market analysts and are not advised by either the author, nor Greynium Information Technologies. The author, nor 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.