SJVN - Fundamental Analysis

Last Updated Time : 02 Aug 25, 12:58 am

Rating: 2.8

⚙️ Financial Snapshot & Profitability

Earnings Volatility

Quarterly PAT: –₹128 Cr — steep decline vs ₹149 Cr prior; –330% variance points to one-off expenses or impairments.

EPS: ₹2.09 — modest, indicating limited per-share profitability.

Return Metrics

ROE: 5.79%, ROCE: 4.87% — weak efficiency, especially for a PSU with steady asset base.

Debt-to-Equity: 1.91 — high leverage; typical for infra-heavy power projects but puts pressure on interest servicing.

Dividend Yield: 1.87% — decent passive income for conservative investors, though payout sustainability requires profit rebound.

📉 Valuation & Technical Trends

Metric Value Analysis

P/E Ratio 46.2 Elevated — reflects market optimism despite EPS dip

P/B Ratio ~2.66 Rich vs asset value; future cash flows priced in

PEG Ratio –6.81 Negative due to earnings shrink — valuation unstable

DMA Trends Price ₹96.2 below both DMA50 ₹98.1 & DMA200 ₹102 Weak medium-term sentiment

RSI 41.3 Neutral — no immediate trigger

MACD –0.66 Mild bearish divergence

Volume: Trending below weekly average — signals subdued participation.

52W Index Position: 21.4% — far below yearly high ₹154, suggesting broad correction.

🔌 Business Model & Sector Advantage

Core Focus: Hydropower & renewable energy under central PSU umbrella.

Strengths

Steady government backing and policy tailwinds from green energy initiatives.

Long asset life with low variable costs; once built, plants generate reliable output.

Challenges

Large capital cycles and long gestation periods impact short-term profitability.

Project delays, cost overruns, and regulatory red tape common in infra PSUs.

Negative PAT can dent investor confidence — clarity needed on cause.

📍 Investment Strategy

Suggested Entry Zone: ₹90–₹94 — just below current price, near RSI floor; wait for reversal confirmation.

Holding Guidance

May suit income-focused portfolios seeking modest yield from PSUs.

Not ideal for aggressive growth investors given negative earnings momentum.

Track PAT recovery, debt reduction, and policy-linked project acceleration.

Want to see how SJVN stacks up against NHPC or NTPC on stability, renewables exposure, and profitability? I can draw up a PSU power player showdown. Just say the word. ⚡

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