SJVN Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
SJVN Ltd's management remains optimistic about long-term growth despite recent challenges in hydro generation due to weak hydrology. The company is actively expanding its capacity with a robust pipeline of projects, including the imminent commissioning of the 1320 MW Buxar Thermal Power Plant and significant solar additions. However, the review of its 25GW target by FY30 due to slower renewable tendering poses a risk to its ambitious expansion plans. Vista's forecast reflects moderating revenue growth and margin pressure, supported by SJVN's strategic focus on diversifying its energy mix and substantial capex allocations. The current valuation aligns with intrinsic value, but elevated leverage raises financial risk. Industry dynamics, including rising electricity demand and competitive pricing pressures, further influence SJVN's outlook. Over the next 12-24 months, key opportunities include successful project commissioning and diversification into renewables, while watchpoints include execution challenges and potential delays in project timelines
Why We Like This Stock
- Imminent commissioning of the 1320 MW Buxar Thermal Power Plant enhances capacity and profitability prospects
- Robust capex plan of INR 9,400 crores supports strategic growth initiatives across hydro, thermal, and solar projects
- Management's focus on diversifying the energy mix positions SJVN to capitalize on rising electricity demand
Things To Watch Out For
- Review of the 25GW target by FY30 raises concerns about the feasibility of ambitious expansion plans
- Elevated leverage and weak interest coverage increase financial risk and pressure on margins
- Near-term operational challenges, including losses in subsidiaries and curtailment issues in solar projects, may hinder performance
Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 2,579 | 3,072 | 4,528 | 5,032 | 6,427 |
| Profit Before Tax (Cr.) | 1,071 | 1,114 | 1,147 | 772 | 1,321 |
| PBT Margin | 41.5% | 36.3% | 2533.1% | 15.4% | 20.6% |
| Net Profit (Cr.) | 884 | 874 | 802 | 540 | 924 |
| Earnings Per Share | 2.2 | 2.2 | 2.0 | 1.4 | 2.4 |
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 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 in the field of hydroelectric projects, highway tunnels, railway tunnels, etc., 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.