SJVN Ltd
Stock Snapshot
Price Performance
Vista Outlook
Basis of our Recommendation
SJVN Ltd is navigating a pivotal transition from a hydro-centric utility to a diversified renewable energy player, as highlighted by management's commitment to scaling solar and pumped storage capacities. This strategic shift aligns with India's energy transition goals, yet the company faces financial strain, evidenced by a declining current ratio and high capital expenditure requirements. Despite these challenges, SJVN's robust project pipeline, including the Buxar Thermal Power Project and significant solar expansions, supports Vista's forecast of moderated revenue growth and margin pressure. The anticipated commissioning of new capacities is expected to stabilize performance, although execution risks remain a concern. Industry dynamics, such as increasing electricity demand and competitive pricing pressures, further complicate the outlook. Over the next 12-24 months, SJVN's key opportunities lie in successful project execution and market share capture in renewables, while headwinds include reliance on thermal power and potential delays in project commissioning. Overall, Vista's financial outlook reflects cautious optimism, with a target price of INR 62.68, indicating a strong sell recommendation due to expected downside risks
Why We Like This Stock
- Management's focus on expanding solar and pumped storage capacity aligns with national energy goals
- A robust project pipeline, including the Buxar Thermal Power Project, supports future revenue growth
- Strategic diversification across hydro, thermal, and renewables positions SJVN to capture market share
Things To Watch Out For
- Financial strain is evident from a declining current ratio and high capital expenditure requirements
- Execution risks associated with large-scale infrastructure projects could hinder growth targets
- Reliance on thermal power amidst rising demand poses sustainability and cost management challenges
Key Parameters
Financial Snapshot
View Technicals Analysis →| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,579 | 3,072 | 4,528 | 5,008 | 6,059 |
| Profit Before Tax (Cr.) | 1,071 | 1,114 | 1,147 | 983 | 1,399 |
| PBT Margin | 41.5% | 36.3% | 25.3% | 19.6% | 23.1% |
| Net Profit (Cr.) | 884 | 874 | 802 | 687 | 979 |
| Earnings Per Share | 2.2 | 2.2 | 2.0 | 1.7 | 2.5 |
Analyst Recommendations
| Broker | Recommendation | Target Price | Date |
|---|---|---|---|
| Elara Capital | ▲ Buy | 106 | 03-Aug-2026 |
| JMFinancials | ▼ Reduce | 68 | 09-Jun-2026 |
Company Overview
Show Company Profile
SJVN Limited, together with its subsidiaries, engages in the generation and sale of electricity in India and internationally. The company is also involved in thermal power, hydro power, wind power, solar power, and power trading and transmission businesses. The company operates the Nathpa Jhakri Hydro Power Station (NJHPS) with a capacity of 1500 MW located in Shimla District; the Arun-3 Hydro Electric Projec with a capacity of 900 MW, located on River Arun in District Sankhuwasabha of Eastern Nepal; the Rampur Hydro Power Station with an installed capacity of 412 MW in Shimla and Kullu District in Himachal Pradesh; and the Naitwar Mori Hydro Power Station with a capacity of 60 MW located in Uttarkashi district in Uttarakhand state. It also operates the Khirvire Wind Power Project with a capacity of 47.6 MW in Ahmednagar, Maharashtra; and the Sadla Wind Power Project with an installed capacity of 50 MW in Surendranagar District in Gujarat, as well as Buxar Thermal Power Project with a capacity of 1320 MW located in Village Chausa, Distt Buxar, Bihar. In addition, the company operates the Charanka Solar Power Station with a capacity of 5.6 MW in Patan district in Gujarat; 1 MW solar power plant at Wadhal and 310 KW solar power plant at Surge Shaft of NJHPS; Parasan Solar Power Station with a capacity of 75 MW in Jalaun District; Gurhah Solar Power Station with a capacity of 75 MW; Gujrai Solar Power Station with a capacity of 50 MW; Raghanesda Solar Power Station with a capacity of 100 MW; and 90 MW Floating Solar Project located in Omkareshwar, Madhya Pradesh. Further, it provides consultancy services, as well as undertakes contracts, project management services, and power trading. The company was formerly known as Satluj Jal Vidyut Nigam Limited and changed its name to SJVN Limited in September 2009. SJVN Limited was incorporated in 1988 and is based in Shimla, India.