Satluj Jal Vidyut Nigam (SJVN) is a leading state-owned enterprise in India’s hydroelectric power generation sector. Founded in 1988, SJVN focuses on producing electricity through hydroelectric projects, mainly situated in the northern parts of the country. In recent years, the company has broadened its scope to encompass solar and wind energy initiatives, in line with India’s objectives for renewable energy development. With a varied portfolio of power generation assets, SJVN has attracted interest from investors seeking reliable long-term returns. In this analysis, Future Stock Value will explore the elements that affect the sjvn share price and analyze its present standing in the stock market.
Overview of Satluj Jal Vidyut Nigam (SJVN)
SJVN is a public sector enterprise (PSU) that is listed on both the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). The organization is primarily engaged in the power generation industry, with a particular emphasis on hydroelectric power production. Currently, SJVN has multiple operational projects throughout India, boasting a total installed capacity exceeding 2,000 MW. Additionally, the company is making investments in renewable energy sources, including wind and solar, in alignment with the government’s ambitious goal of reaching 500 GW of renewable energy capacity by the year 2030.
SJVN has demonstrated a consistent financial performance, which has contributed to its appeal among conservative investors seeking reliable returns, particularly through dividends. With the government possessing a majority share in the company, it is regarded as a dependable and low-risk investment option, especially for those inclined towards public sector undertakings (PSUs).
SJVN Share Price Target for 2026
Considering the aforementioned factors, a possible projection for SJVN’s share price by the year 2026 is presented below.
Current Price ₹ 109/-
| Year | Bullish Scenario | Intermediate Situation | Bearish Scenario |
|---|---|---|---|
| 2026 | ₹ 200 – ₹ 250 | ₹ 150 – ₹ 190 | ₹ 130 – ₹ 160 |
| 2030 | ₹ 500 – ₹ 550 | ₹ 440 – ₹ 490 | ₹ 400 – ₹ 450 |
- Bullish Scenario: Should SJVN achieve its renewable energy growth objectives, effectively implement its current hydroelectric initiatives, and maintain favorable government backing, the company may witness substantial increases in both revenue and profit. In such a case, the share price could experience considerable appreciation, potentially approaching ₹200-₹250 by the year 2026.
- Intermediate Situation: In a more tempered scenario, where SJVN persists in increasing its capacity yet encounters certain obstacles in project implementation or market dynamics, the share price may experience growth at a more gradual rate. In such a context, the share price could remain in the range of ₹150-₹190 by the year 2026.
- Bearish Scenario: In circumstances where project delays, regulatory obstacles, or adverse market conditions arise, SJVN’s share price may witness a deceleration in growth. Under such conditions, the stock could remain within the ₹130-₹160 range, contingent upon its ability to effectively navigate these challenges.
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Company Essentials
- Market Cap : ₹ 42,870.14 Cr.
- Enterprise Value : ₹ 50,447.55 %
- No. of Shares : 392.98 Cr.
- P/E : 42.3
- P/B : 2.94
- Face Value : ₹ 10
- Div. Yield : 1.65 %
- Book Value (TTM) : ₹ 37.08
- Operating Revenue : ₹ 2,021.18 Cr.
- Debt : ₹ 9,598.59 Cr.
- Promoter Holding : 81.85 %
- EPS (TTM) : ₹ 2.58
- Sales Growth : -13.69
- ROE : 6.52 %
- ROCE : 7.37 %
- Profit Growth : -33.37%
Peer Comparison
| COMPANY | PRICERs. | MCAPCr. | P/B | P/E | EPSRs. | ROE% | ROCE% | P/S | EV/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
| JSW Energy | 634.40 | 1,10,878.43 | 5.19 | 97.90 | 6.48 | 6.64 | 7.90 | 21.62 | 58.38 |
| NTPC Green Energy | 128.17 | 1,08,000.27 | 5.98 | 291.49 | 0.44 | 6.64 | 9.77 | 55.35 | 63.46 |
| Adani Energy Solut. | 821.25 | 98,655.34 | 5.10 | 221.71 | 3.70 | 5.60 | 6.94 | 65.02 | 111.47 |
| NHPC | 83.09 | 83,464.19 | 2.16 | 28.83 | 2.88 | 10.30 | 7.71 | 9.93 | 19.38 |
| Torrent Power | 1,512.50 | 76,263.28 | 4.54 | 33.27 | 45.50 | 15.60 | 15.69 | 3.82 | 16.68 |
| SJVN | 109.09 | 42,870.14 | 2.94 | 42.30 | 2.58 | 6.52 | 7.37 | 16.92 | 21.84 |
| Neyveli Lignite | 243.05 | 33,702.20 | 2.03 | 27.41 | 8.87 | 12.06 | 14.31 | 3.20 | 10.68 |
| CESC | 185.90 | 24,642.35 | 2.42 | 31.39 | 5.92 | 7.81 | 9.46 | 2.86 | 13.82 |
| Reliance Power | 45.80 | 18,397.73 | 1.95 | 369.06 | 0.12 | 0.49 | 1.02 | 0 | 1,058.41 |
| Indian Energy Exch | 177.02 | 15,784.75 | 15.55 | 41.11 | 4.31 | 40.17 | 53.06 | 35.14 | 29.20 |
Quarterly Result (All Figures in Cr.)
| PARTICULARS | Sep 2023 | Dec 2023 | Mar 2024 | Jun 2024 | Sep 2024 |
|---|---|---|---|---|---|
| Net Sales | 870.74 | 536.55 | 461.68 | 831.73 | 994.51 |
| Total Expenditure | 170.75 | 173.08 | 238.95 | 196.15 | 190.64 |
| Operating Profit | 699.99 | 363.47 | 222.73 | 635.58 | 803.87 |
| Other Income | 81.95 | 83.64 | 60.66 | 71.15 | 82.43 |
| Interest | 128.57 | 145.89 | 85.66 | 142.07 | 159.05 |
| Depreciation | 97.97 | 108.07 | 231.23 | 114.44 | 116.19 |
| Exceptional Items | 0 | -24.99 | 103.84 | 0 | 0 |
| Profit Before Tax | 555.40 | 168.16 | 70.34 | 450.22 | 611.06 |
| Tax | 128.31 | 41.63 | -4.34 | 101.88 | 147.12 |
| Profit After Tax | 427.09 | 126.53 | 74.68 | 348.34 | 463.94 |
| Adjusted EPS (Rs) | 1.09 | 0.32 | 0.19 | 0.89 | 1.18 |
Profit & Loss (All Figures in Cr. Adjusted EPS in Rs.)
| PARTICULARS | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Net Sales | 2,707.61 | 2,490.83 | 2,421.96 | 2,935.41 | 2,533.59 |
| Total Expenditure | 594.44 | 644.25 | 629.03 | 680.05 | 725.44 |
| Operating Profit | 2,113.17 | 1,846.58 | 1,792.93 | 2,255.36 | 1,808.15 |
| Other Income | 580.57 | 1,049.01 | 203.58 | 363.43 | 299.97 |
| Interest | 344.20 | 97.66 | 225.52 | 466.44 | 478.78 |
| Depreciation | 384.09 | 393.27 | 404.29 | 390.59 | 534.11 |
| Exceptional Items | -6.09 | -293.44 | -67.08 | -39.93 | 69.14 |
| Profit Before Tax | 1,959.36 | 2,111.22 | 1,299.62 | 1,721.83 | 1,164.37 |
| Provision for Tax | 401.93 | 478.18 | 322.10 | 358.38 | 255.97 |
| Net Profit | 1,557.43 | 1,633.04 | 977.52 | 1,363.45 | 908.40 |
| Adjusted EPS (Rs.) | 3.96 | 4.16 | 2.49 | 3.47 | 2.31 |
Balance Sheet (All Figures are in Crores.)
| Particulars | Mar 2020 | Mar 2021 | Mar 2022 | Mar 2023 | Mar 2024 |
|---|---|---|---|---|---|
| Equity and Liabilities | |||||
| Share Capital | 3,929.80 | 3,929.80 | 3,929.80 | 3,929.80 | 3,929.80 |
| Total Reserves | 8,104.51 | 8,832.04 | 9,198.81 | 9,892.17 | 10,100.48 |
| Borrowings | 1,972.19 | 1,855.68 | 4,796.95 | 6,395.12 | 9,036.48 |
| Other N/C liabilities | 1,148.51 | 1,658.28 | 1,954.58 | 862.38 | 1,105.01 |
| Current liabilities | 887.02 | 1,388.30 | 2,013.36 | 2,081.95 | 1,847.07 |
| Total Liabilities | 16,042.03 | 17,664.10 | 21,893.50 | 23,161.42 | 26,018.84 |
| Assets | |||||
| Net Block | 7,570.76 | 7,498.46 | 7,311.90 | 7,102.43 | 7,981.78 |
| Capital WIP | 913.01 | 1,201.89 | 2,226.15 | 3,028.69 | 2,735.55 |
| Intangible WIP | 31.87 | 4.89 | 0.41 | 0 | 0 |
| Investments | 1,972.99 | 3,462.14 | 4,921.88 | 5,931.45 | 7,931.45 |
| Loans & Advances | 1,297.65 | 1,732.50 | 2,283.03 | 1,250.55 | 2,218.46 |
| Other N/C Assets | 77.53 | 1,338.89 | 1,029.42 | 1,035.54 | 958.68 |
| Current Assets | 4,178.22 | 2,425.33 | 4,120.71 | 4,812.76 | 4,192.92 |
| Total Assets | 16,042.03 | 17,664.10 | 21,893.50 | 23,161.42 | 26,018.84 |
Corporate Actions (Dividend)
| EX DATE | RECORD DATE | DIVIDEND% | AmountRs. | TYPE |
|---|---|---|---|---|
| 12 Sep 2024 | 13 Sep 2024 | 6.5 | 0.65 | Final |
| 21 Feb 2024 | 21 Feb 2024 | 11.4999 | 1.15 | Interim |
| 21 Sep 2023 | 22 Sep 2023 | 6.2 | 0.62 | Final |
| 17 Feb 2023 | 17 Feb 2023 | 11.5 | 1.15 | Interim |
| 21 Sep 2022 | 23 Sep 2022 | 5.5 | 0.55 | Final |
Shareholding Pattern
| Summary | Sep 2024 | Jun 2024 | Mar 2024 | Dec 2023 | Sep 2023 | Jun 2023 | Mar 2023 | Dec 2022 | Sep 2022 | Jun 2022 | Mar 2022 | Dec 2021 |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Promoter | 81.9% | 81.9% | 81.9% | 81.9% | 81.9% | 86.8% | 86.8% | 86.8% | 86.8% | 86.8% | 86.8% | 86.8% |
| FII | 2.4% | 2.4% | 2.4% | 1.7% | 0.9% | 1.4% | 1.8% | 2.3% | 3.0% | 2.9% | 2.7% | 2.5% |
| DII | 4.3% | 3.9% | 3.4% | 6.0% | 5.8% | 4.3% | 4.1% | 3.8% | 3.8% | 3.4% | 4% | 4.6% |
| Public | 11.5% | 11.8% | 12.4% | 10.5% | 11.5% | 7.5% | 7.4% | 7.1% | 6.4% | 6.9% | 6.6% | 6.1% |
“The financial figures mentioned in this analysis are derived from Ticker by Finology for accuracy and reliability.”
Factors Affecting the Share Price of SJVN
Several critical factors influence the share price of Satluj Jal Vidyut Nigam, including:
Hydroelectric Energy Production and Capacity Enhancement
As a hydroelectric power provider, SJVN’s stock value is significantly affected by its efficiency in power generation and its capacity for expansion. Favorable advancements in new initiatives, including the launch of additional hydropower facilities or the effective execution of capacity enhancement strategies, may result in a rise in the share price. Conversely, setbacks in project timelines or operational challenges can exert negative pressure on the stock.
Policies and Initiatives of the Government
SJVN, as a public sector undertaking, is greatly influenced by governmental policies. The Indian government’s dedication to renewable energy and climate objectives is vital in shaping SJVN’s potential for growth. For example, incentives for renewable energy, advantageous tariffs, and financial support for infrastructure projects can enhance the company’s financial outcomes and its stock valuation. Additionally, the government’s divestment strategies concerning public sector undertakings and any modifications in public sector policies may also impact investor confidence.
Financial Performance and Dividend Yield
SJVN’s financial performance plays a crucial role in influencing the company’s share price. Sustained revenue growth, profitability, and a reliable history of dividend distributions enhance the stock’s appeal to long-term investors. Additionally, the company’s substantial dividend yield serves as a compelling attraction for those seeking income. Generally, strong financial outcomes result in an increase in share prices, while disappointing earnings or an unforeseen decline in profitability may cause a decrease in share values.
Renewable Energy Transition
SJVN is placing a greater emphasis on renewable energy generation, particularly in the areas of solar and wind power, as part of its long-term strategy. In light of global movements advocating for sustainable energy, organizations such as SJVN that adopt clean energy initiatives are expected to reap significant advantages. Advancements in SJVN’s renewable energy endeavors can enhance investor confidence and positively influence its stock price.
Market Sentiment and External Economic Influences.
The overall market sentiment, prevailing economic conditions, and macroeconomic elements such as inflation, interest rates, and global commodity prices significantly impact SJVN’s stock price. During periods of economic instability, the risk tolerance of investors may diminish, resulting in reduced demand for shares of public sector undertakings. In contrast, in a robust economic environment, there may be a heightened interest in stable dividend-yielding stocks like SJVN, which could contribute to an increase in its share price.
SJVN’s Latest Stock Activity.
The share price of Satluj Jal Vidyut Nigam has exhibited a trend of steady growth over the past several years. The company’s reliable income generated from its current hydroelectric initiatives, along with its foray into the renewable energy sector, has enhanced investor confidence. By the end of 2024, SJVN’s stock price has undergone some variations, which can be linked to diverse market dynamics and the overall economic landscape.
In recent years, the company’s stock price has attracted interest owing to its increasing capabilities in renewable energy. Should SJVN persist in achieving its expansion objectives and sustain consistent profitability, its stock price is likely to exhibit further upward trends.
Financial Performance and Dividend Payouts
SJVN is recognized for its reliable performance regarding profitability and dividend distributions. The company’s financial stability and consistent dividend payments are significant elements that appeal to long-term investors, especially those looking for steady returns.
- Stable Revenue Stream: SJVN benefits from a robust portfolio of hydroelectric facilities, which provides a reliable source of revenue. Additionally, the company’s ongoing commitment to minimizing operational expenses and enhancing efficiency is expected to contribute to consistent profit growth.
- Attractive Dividend Yields: SJVN is recognized as a stock that pays dividends. Its consistent dividend yield has historically been a significant draw for investors, and the ongoing distribution of dividends is expected to continue playing a crucial role in influencing investor sentiment and bolstering the stock price.
Performance Insights (as of December 2024)
- Price Range: SJVN’s stock price has generally fluctuated between ₹20 and ₹40 over the past several years, experiencing occasional increases in response to favorable financial outcomes or the successful completion of projects.
- Dividend Yield: The firm is recognized for offering appealing dividend yields, which has contributed to its popularity among investors seeking income.
- Market Capitalization: According to the most recent data, SJVN’s market capitalization has been consistently increasing, indicating the trust that investors place in its potential for long-term growth.
Future Outlook for SJVN’s Stock Price
The anticipated trajectory of SJVN’s stock price is significantly linked to its performance in critical sectors such as:
- Renewable Energy Expansion: As India advances towards more sustainable energy alternatives, SJVN’s investments in solar and wind energy will be pivotal in influencing its development.
- Hydropower Projects: Ongoing achievements in hydroelectric power initiatives, including the Nathpa Jhakri and Rampur Hydro Electric Projects, are expected to enhance revenue growth and influence stock performance.
- Policy Support: Favorable modifications in government policies concerning renewable energy or public sector undertakings are expected to lead to an increase in stock prices.
In summary, SJVN’s stock price offers a comparatively secure investment opportunity for conservative investors seeking consistent growth and appealing dividends. Nevertheless, similar to any equity, its valuation may be affected by market dynamics and governmental regulations. Investors are advised to monitor the company’s quarterly earnings reports, announcements of new projects, and governmental actions within the energy sector to assess its potential future performance.
Conclusion
The share price of Satluj Jal Vidyut Nigam presents a compelling investment opportunity, especially for investors prioritizing stability, consistent dividends, and a commitment to renewable energy. As the company progresses in diversifying its portfolio and adopting sustainable energy initiatives, it possesses significant long-term growth potential. With a robust base in hydroelectric power and a progressive stance towards renewable sources, SJVN stands out as a favorable option for those aiming to benefit from the changing energy dynamics in India.
SJVN is strategically positioned to take advantage of India’s transition to renewable energy, bolstered by its robust portfolio of hydroelectric projects. By 2026, the company’s stock performance will primarily hinge on its capacity to implement its expansion strategies, sustain profitability, and respond effectively to governmental policies and market dynamics.
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