SJVN shares jump 9% on winning new order; grows over 5-fold in one year

Snapping two sessions losing streak, shares of SJVN, formerly known as Satluj Jal Vidyut Nigam, surged over 9% in opening trade on Thursday after the public sector unit bagged a new order worth ₹1,100 crore. The PSU stock has witnessed a strong rally in the last one year, with the share price growing more than 5-fold amid sustained order inflows as well as its pro-active role in furthering the government’s cross-border and northern region hydro power development objectives. 

SJVN shares opened 5.5% higher at ₹155 against the previous closing price of ₹146.95 on the BSE. In the early trade, the stock gained as much as 9.5% to ₹160.90 amid surge in volume trade. The market capiatlisation increased to ₹59,340 crore with 33 lakh shares changing hands over the counter on the BSE in the first half an hour of trade.

Earlier this week, the counter touched its new all-time high of ₹170.45 on February 5, rebounding 460% from its 52-week low of ₹30.39 touched on March 27, 2023. SJVN, which got listed in May 2010, had a disappointing run at Dalal Street in the first 13 years, with the shares hovering around its IPO price of ₹26 per share. The stock, however, gained momentum in the last one and turned multibagger on the back of strong order flows and investors’ growing appetite for PSU stocks.  

In an exchange filing last evening, the public sector hydroelectric power generator company said that it received the letter of intent (LOI) from Gujarat Urja Vikas Nigam Limited (GUVNL) for 200 megawatt (MW) solar power project in GUVNL Phase XXII. The tentative cost of construction and development of this project is ₹1,100 crore and tentative timeline for commissioning is 18 months from the date of signing of the power purchase agreement.

“SJVN Green Energy Limited (SGEL), a wholly owned subsidiary of the Company has earlier bagged the initial 100 MW Solar Project through bidding and further 100 MW under Greenshoe option at a tariff of ₹2.63 per unit on Build Own and Operate basis in e-RA conducted by GUVNL in December 2023,” it says in a BSE filing.

As per the release, the ground mounted solar project will be developed by SGEL anywhere in India through EPC contract. “The Power Purchase Agreement (PPA) shall be executed with GUVNL after adoption of tariff by GERC. The Project shall be commissioned in a period of 18 Months from the date of signing of PPA. The PPA shall be signed between GUVNL and SGEL for 25 years.”

The project is expected to generate 508.4 million units in the first year after commissioning and the projected cumulative energy generation over a period of 25 years is 11,836.28 million units. The commissioning of this project is expected to reduce 5.79 lakh tonnes of carbon emission and would contribute to the government mission of reduction in carbon emission.

The company further says that it is on rapid progression to achieve its shared vision of 25,000 MW by 2030 & 50,000 MW by 2040.

SJVN, a ‘Miniratna’ company was incorporated on May 24, 1988, as a joint venture of the government of India and the Government of Himachal Pradesh (GoHP). As on June 30, 2023, the GoI and the GoHP held 55% and 26.85%, respectively, in SJVN. Last September, the central government sold 4.92% stake in the company at a floor price of ₹69 per equity share.

As on June 30, 2023, SJVN had an installed capacity of 2,091.5 MW, which includes the Nathpa Jhakri hydro plant (1,500 MW), the Rampur hydro plant (412 MW), the Khirvire wind project (47.6 MW), the Sadla solar project (50 MW), the Charanka solar project (5.6 MW), the Parasan solar power station (75 MW), and a grid connected solar plant of 1.3 MW. It also operates an 86-km 400 kV DC line across the India-Nepal border through the JV mode.

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