Investor Presentaiton
3
fundamental
ANALYSIS
SJVN Ltd
20+
HDFC securities
Click. Invest. Grow. YEARS
SJVN Ltd has shared an aggressive capacity addition outlook, doubling their target of 12000 MW to 25000 MW by FY2030. The company
trades at an attractive dividend yield of 4.8%. Dividend is expected to grow in the coming years as the earnings increase. We expect
Revenue/EBITDA/PAT to grow at CAGR of 29.3%/28.0% / 24.2% over FY22-24E.
We think the base case fair value of the stock is Rs 39 (10x FY24E EPS and 1.05x FY24E BV) and the bull case fair value is Rs 42.75 (11x
FY24E EPS and 1.15x FY24E BV) over the next two-three quarters. Investors can buy the stock in the band of Rs 35.5-36 (9.2x FY24E
EPS and 0.96x FY24E BV) and add more on dips to Rs 32 (8.2x FY24E EPS and 0.86x FY24E BV).
Financial Summary
Particulars (Rs cr)
Q1FY23
Q1FY22
YOY-%
Q4FY22
QoQ-%
FY20
FY21
FY22
FY23E
FY24E
Total Operating Income
1004.1
662.5
51.6%
323.1
210.8%
2702.8
2485.4
2417.0
3152.0
4041.2
EBITDA
828.1
508.3
62.9%
142.6
480.9%
2030.5
1798.9
1726.4
2237.9
2828.9
Depreciation
100.4
96.5
4.1%
103.2
-2.7%
384.1
393.3
404.3
438.3
638.9
Other Income
68.1
42.4
60.5%
70.8
-3.8%
400.7
737.5
217.8
270.0
295.0
Interest Cost
144.5
Tax
81.9
APAT
609.2
26.2
103.0
342.1
451.3%
-20.5%
78.1%
82.4
75.3%
268.1
-2.9
161.3
257.8
453.0
24.6
7.5
233.2%
8033.9%
404.7
482.1
326.2
454.1
509.1
1566.8
1645.6
989.8
1362.2
1527.3
EPS (Rs)
RoE-%
4.0
13.0%
4.2
2.5
3.5
3.9
12.9%
7.5%
9.9%
10.5%
P/E (x)
EV/EBITDA
8.9
6.7
8.5
14.2
10.3
9.2
8.3
10.4
10.5
10.2
(Source: Company, HDFC sec)
Q1FY23 Result Review:
SJVN reported revenue from operations of Rs. 1,004 cr (up 51.6%/210.8% YoY/QoQ) of which Rs. 288 cr pertains to arrears of Rampur
HPS based on the review petition filed with CERC for the period 2014-19. Generation increased by 12% from 2436 MUs in Q1FY22 to
2736 MUs in this quarter. PAF also registered an increase and machines were made available to the extent of 110.11% in NJHPS and
110.2% in RHPS. This also resulted in an increase in capacity incentives and unscheduled interchange (UI) i.e. deviation settlement
incentives from Rs. 71.5 cr in Q1FY22 to Rs. 87.59 cr in Q1FY23. PBT also increased by 53% from Rs. 425 cr in quarter one of last year to
Rs. 650 cr in Q1FY23. SJVN reported PAT of Rs. 607 cr (up 79% YoY).
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