Investor Presentaiton
fundamental
ANALYSIS
SJVN Ltd
HDFC securities 20
Click. Invest. Grow. YEARS
Industry
LTP
Power
Rs 35.75
HDFC Scrip Code
BSE Code
NSE Code
Bloomberg
SJVLTDEQNR
533206
35.75
3929.8
SJVN
SJVN:IN
CMP Oct 28, 2022
Equity Capital (Rs cr)
Face Value (Rs)
Equity Share O/S (cr)
Market Cap (Rs cr)
392.98
14049.0
Book Value (Rs)
33.5
Avg. 52 Wk Volumes
10
3659239
36.90
25.45
52 Week High
52 Week Low
Share holding Pattern % (Sep 2022)
Promoters
Institutions
86.77
6.81
Non Institutions
Total
2
HDFCsec Retail research
stock rating meter
for details about the ratings, refer at the end of the report
*Refer at the end for explanation on Risk Ratings
Fundamental Research Analyst
Nirmam Mehta
[email protected]
6.42
100.00
Recommendation
Buy in the band of Rs 35.5 - 36 and add on dips to Rs 32
Our Take:
Base Case Fair Value
Bull Case Fair Value
Time Horizon
Rs 39
Rs 42.75
2-3 quarters
Satluj Jal Vidyut Nigam Limited (SJVN) has grown from a single project single state operation (i.e. 1500 MW Nathpa Jhakri Hydro Power
Station in Himachal Pradesh) into a diversified power generation company having commissioned 8 projects aggregating 2091.5 MW of
installed capacity and 86 km 400 KV transmission line. Its overall project portfolio (operational, under construction, pre-construction and
projects in survey and investigation stage) comprises of 55 projects aggregating 31905 MW spread across 13 states and 3 countries. The
management has a vision to have installed capacity of 5000 MW by 2023, 25000 MW by 2030 and 50000 MW by 2040.
SJVN is primarily a hydropower generation company, diversifying into alternate energy sources such as thermal, solar and wind projects
as well as into power transmission. A wholly owned subsidiary - SJVN Green Energy Limited (SGEL) was incorporated on March 30, 2022
for expanding the renewable energy portfolio of the group and work on new business ventures such as solar parks, biomass, small
hydro, hybrid energy, green hydrogen and battery energy storage systems (BESS).
There is a lot of untapped hydro potential in India with only 46 GW commissioned out of an estimated potential of 145 GW. In view of
the Government's initiative to achieve 500 GW of installed electricity capacity from non-fossil sources by 2030, hydropower assumes
greater importance to provide stability to the electric grid due to the intermittent availability of solar and wind to produce power. The
company plays a key role in achieving the central government's objective of optimally tapping the hydropower potential in the northern
region as well as strengthening bilateral relations through cross border hydropower development.
The capacity addition outlook, regulated business model, consistent operational performance and favorable valuations make it an
attractive investment idea.
Valuation & Recommendation:
With the expected commissioning of 1320 MW Buxar thermal power plant and 900 MW Arun-3 hydroelectric project (HEP) by FY24E,
installed capacity is slated to more than double from the current 2091.5 MW. The full impact of the additional capacity will be visible in
FY25, leading to a significant increase in revenue and profitability. Consistent operational performance of the Nathpa Jhakri HEP and
Rampur HEP allows the company to earn incentives over and above the revenue from power generation. Government measures to
promote hydropower and renewables would lead to higher offtake.
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