⚠ Disclaimer: This report is generated using AI tools and is for informational purposes only. It does not constitute investment advice. Please consult a registered financial advisor before making any investment decisions.
SJVN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.2
| Stock Code | SJVN | Market Cap | 27,984 Cr. | Current Price | 71.2 ₹ | High / Low | 108 ₹ |
| Stock P/E | 35.0 | Book Value | 37.6 ₹ | Dividend Yield | 2.05 % | ROCE | 8.36 % |
| ROE | 6.86 % | Face Value | 10.0 ₹ | DMA 50 | 77.0 ₹ | DMA 200 | 87.8 ₹ |
| Chg in FII Hold | 0.14 % | Chg in DII Hold | -0.33 % | PAT Qtr | 372 Cr. | PAT Prev Qtr | 259 Cr. |
| RSI | 40.6 | MACD | -1.53 | Volume | 53,90,498 | Avg Vol 1Wk | 59,13,317 |
| Low price | 69.8 ₹ | High price | 108 ₹ | PEG Ratio | -40.2 | Debt to equity | 0.70 |
| 52w Index | 3.89 % | Qtr Profit Var | -21.3 % | EPS | 2.04 ₹ | Industry PE | 25.6 |
📊 Core Financials
- Quarterly PAT: 372 Cr vs 259 Cr previously, but YoY profit variation shows -21.3% decline.
- ROE at 6.86% and ROCE at 8.36% are modest, reflecting limited efficiency in capital utilization.
- Debt-to-equity ratio: 0.70, manageable but indicates reliance on borrowings.
- Dividend yield at 2.05% provides income stability for investors.
💹 Valuation Indicators
- P/E ratio: 35.0, higher than industry average of 25.6, suggesting overvaluation.
- P/B ratio: ~1.89 (71.2 ₹ / 37.6 ₹ book value), moderate premium.
- PEG ratio: -40.2, negative due to weak earnings growth, highlighting valuation concerns.
- Intrinsic value appears lower than current price, limited margin of safety.
🏢 Business Model & Competitive Advantage
- Operates in power generation, primarily hydro and renewable energy projects.
- Competitive advantage lies in government backing and long-term power purchase agreements.
- Exposure to renewable energy expansion provides future growth potential.
📈 Entry Zone & Long-Term Guidance
- Entry zone: 68–72 ₹ range (near current low and RSI at 40.6, close to oversold).
- Long-term holding viable for dividend income and renewable energy exposure.
- Investors should be cautious due to weak profitability trends and stretched valuations.
Positive
- Dividend yield of 2.05% offers stable returns.
- Government-backed entity ensures operational stability.
- Renewable energy expansion provides long-term growth opportunities.
Limitation
- Low ROE (6.86%) and ROCE (8.36%).
- High P/E compared to industry average.
- Negative PEG ratio indicates poor growth-adjusted valuation.
Company Negative News
- Quarterly profit variation shows -21.3% decline, raising concerns on earnings stability.
- Stock trading below 50 DMA (77 ₹) and 200 DMA (87.8 ₹), reflecting bearish trend.
Company Positive News
- Quarterly PAT improved sequentially (372 Cr vs 259 Cr).
- FII holdings increased by 0.14%, showing some institutional interest.
Industry
- Industry PE at 25.6, lower than SJVN’s 35.0, highlighting sector undervaluation relative to SJVN.
- Power sector transitioning towards renewables, offering long-term opportunities.
Conclusion
- SJVN offers stability through dividends and government support but faces profitability challenges.
- Valuations remain stretched compared to industry peers.
- Accumulation recommended near 68–72 ₹ for long-term investors seeking dividend yield and renewable exposure.
I can also prepare a peer comparison with NTPC and NHPC to highlight how SJVN stacks up in valuation and growth metrics. Would you like me to do that next?