Despite receiving Cabinet approval for Rs. 5,792.36 crore investment in a Hydro Electric Project in Nepal, shares of this hydroelectric power generation company fell by 1.2 percent on BSE to Rs. 142.2 in the trading session of Monday.
With a market cap of Rs. 54,742 crores, the shares of SJVN Limited (NS:SJVN) fell by 3.2 percent to close in the red at Rs. 139.3. This drop is primarily attributed to broader market weaknesses, as the benchmark NIFTY 50 index fell by 662.1 points, or 2.68 percent, closing at 24,055.6.
Is SJVN a buy or sell? What is its Fair Value? What are the company's health parameters? What are the positive and negative factors driving the company -- ProTips? Know all the answers on the company's overview page here.
What’s the News:
According to the latest regulatory filings with the stock exchanges, the Cabinet Committee on Economic Affairs (CCEA) approved the investment of Rs. 5,792.36 crores for the 669 MW Lower Arun Hydro Electric Project (LAHEP) at a levelized tariff of Rs. 4.99 per unit.
The 669 MW Lower Arun Hydro Electric Project with four units of 167.25 MW each, is located downstream of the 900 MW Arun-3 Hydro Electric Project on river Arun in Sankhuwasabha district of the province-1 in Nepal, and the project is designed to generate 2,900 million units of energy annually.
SJVN bagged this project through international competitive bidding and the project is being implemented on a Build-Own-Operate and Transfer (BOOT) basis with active support from the Ministry of Power, Government of India.
The project shall be commissioned within a span of 60 months from the date of investment approval. The generated power shall be evacuated through the under-construction 217 km 400 KV Double Circuit Transmission Line up to Sitamarhi, Bihar.
Previous News:
On 25th July, SJVN Limited received a Letter of Intent from the Government of Mizoram for the Darzo Lui Pumped Storage Project, which was its first project in Mizoram.
The project, with an installed capacity of 2,400 MW, is situated across the Darzo Nallah, a tributary of the Tuipui River, and the total estimated cost of the project stood at Rs. 13,947.5 crores.
It is projected to generate 4,993.2 MU annually with 95 percent plant availability. The project will require an estimated 6,331.66 MU of annual input energy for pumping water to the upper reservoir and is expected to be completed within 72 months.
Financials:
The company experienced significant growth in its net profit, showing a year-on-year rise of around 255 percent from Rs. 17.2 crore in Q4 FY22-23 to Rs. 61 crore in Q4 FY23-24.
However, its revenue from operations fell during the same period from Rs. 503.7 crores to Rs. 483 crores, representing a decline of 4.1 percent YoY.
Stock performance:
The stock has delivered multibagger returns of nearly 146 percent in one year and around 50 percent of positive returns year-to-date.
About the company:
SJVN Limited is primarily engaged in the business of generation and sale of electricity along with providing consultancy services.
Written by Shivani Singh
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
The post Midcap stock in focus after Govt approved ₹ 5,792 Cr investment for hydro electric project appeared first on Trade Brains.
To understand more about InvestingPro, watch this video: https://www.youtube.com/watch?v=_WfQcN5vjIE