SJVN stock hits 20% lower circuit after fall in Q3 profit

In contrast with a consistent rally in the past year, shares of state-run power generation company SJVN Ltd hit a 20% lower circuit today, following a fall in net profit in the October-December 2023 quarter. The stock had dipped 17% in the last trading session as investors booked profit at a higher level.

The public sector company's share opened 12.8% down at ₹122.25 on the BSE and further fell to ₹112.50, down 20%, thereby hitting the lower circuit.

At the time of filing the report, as many as 160.73 lakh shares were changing hands on the counter against a two-week average of 83.25 lakh. The company's m-cap at the current share price has also slipped to ₹44,210.20 crore.

The scrip has fallen 23.8% in the past week, though it has seen a consistent rise in the past year, turning multi-bagger on “strong order flows” and investors’ growing appetite for PSU stocks.

The shares of SJVN have surged a whopping 249.77% in the last one year. In 2024 alone, it has gone up 21.04% so far. The share has almost doubled in the past six months at 95.40%. At the current share price, SJVN shares are trading at 33.9% down from a one-year high of ₹170.45 touched on February 5, 2024.

Missing analysts' estimates, SJVN had recorded a 51.64% decline in Q3 FY24 profit year-on-year at ₹138.9 crore, while its revenue dipped 1.58% at ₹543.3 crore. The company's EBITDA went down 3.17% to ₹368.5 crore, while the margin declined 112 basis points to 67.81%.

The SJVN board, meanwhile, approved an interim dividend of ₹1.15 per equity share for FY24, for which the record date has been fixed at February 21.

SJVN Chaiman and MD Geeta Kapur, while speaking on SJVN's Q3 FY2024 earnings call on Monday i.e. February 12, 2o24, says now the company’s installed capacity stands at 2,227 megawatt. SJVN, she says, has a clear vision of installing a 25,000-megawatt portfolio in operation by 2030 and 50,000 megawatts by 2040.

Kapur says SJVN has also been listed as one of the renewable energy implementation agencies by the Ministry of New and Renewable Energy to meet the 500-gigawatt target by 2030. "As of date solar projects firm and dispatchable part 2,368 megawatt has already been awarded by SJVN."

Further, the tenders of 4500 megawatts are under finalisation and likely to be awarded within this quarter, says Kapoor.

In total, SJVN currently has four projects under construction in hydro at 1,558 MW capacity; one thermal project of 1,320 MW capacity; 11 projects of 2,060 MW capacity in renewable energy and a transmission line of 3,217 kilometres.

"Under preconstruction, we have hydro four projects with total megawatts of 4,490, renewable 15 projects total of 2,763 and thus the total being 7,253 megawatts 19 projects, under survey and investigation hydro 13 projects 3,650/9 thermal 1 660 megawatt total of 14 projects, 4310.9. Under allotment, we have hydro 10 projects 2507, renewable energy five projects 21,000, PSVs 10 projects 12,135 thus total 25 projects 35,648.2," says Kapur.