⚠ 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 | 27,658 Cr. | Current Price | 70.4 ₹ | High / Low | 108 ₹ |
| Stock P/E | 30.3 | Book Value | 37.6 ₹ | Dividend Yield | 2.07 % | ROCE | 8.36 % |
| ROE | 6.86 % | Face Value | 10.0 ₹ | DMA 50 | 73.7 ₹ | DMA 200 | 83.7 ₹ |
| Chg in FII Hold | 0.14 % | Chg in DII Hold | -0.33 % | PAT Qtr | 252 Cr. | PAT Prev Qtr | 372 Cr. |
| RSI | 45.6 | MACD | -1.31 | Volume | 76,31,067 | Avg Vol 1Wk | 75,42,227 |
| Low price | 67.1 ₹ | High price | 108 ₹ | PEG Ratio | -34.8 | Debt to equity | 0.70 |
| 52w Index | 8.17 % | Qtr Profit Var | 80.8 % | EPS | 2.32 ₹ | Industry PE | 30.0 |
📊 Financial Overview
- Revenue & Profit Growth: Quarterly PAT declined from ₹372 Cr. to ₹252 Cr. (down 32%).
- Margins: ROE at 6.86% and ROCE at 8.36% → weak efficiency.
- Debt: Debt-to-equity ratio of 0.70 → moderate leverage.
- Cash Flow: Stable but pressured by falling profits.
- Return Metrics: EPS at ₹2.32, relatively low compared to peers.
💹 Valuation Indicators
- P/E Ratio: 30.3 vs Industry PE of 30.0 → fairly valued.
- P/B Ratio: Price ₹70.4 / Book Value ₹37.6 ≈ 1.87.
- PEG Ratio: -34.8 → negative, reflecting poor growth outlook.
- Intrinsic Value: Current valuation offers limited upside given weak earnings momentum.
🏢 Business Model & Competitive Advantage
- Operates in power generation (hydro, thermal, renewable projects).
- Government-backed entity with strong project pipeline.
- Competitive advantage lies in long-term contracts and state support.
- Challenges include low profitability, regulatory risks, and project delays.
📈 Entry Zone Recommendation
- Technicals: RSI at 45.6 (neutral), MACD negative, price below 50DMA (73.7) and 200DMA (83.7).
- Entry Zone: Accumulation possible near ₹67–70 for long-term investors.
- Holding Guidance: Suitable for conservative investors seeking dividend yield (2.07%), but growth prospects remain weak.
✅ Positive
- Dividend yield at 2.07% provides income stability.
- Government backing ensures long-term project viability.
- FII holdings increased (+0.14%).
⚠️ Limitation
- Weak ROE (6.86%) and ROCE (8.36%).
- Declining quarterly profits.
- Negative PEG ratio indicates poor growth outlook.
📉 Company Negative News
- PAT dropped from ₹372 Cr. to ₹252 Cr.
- Stock corrected from ₹108 to ₹70.4.
- DII holdings decreased (-0.33%).
📈 Company Positive News
- Dividend yield remains attractive at 2.07%.
- Government support continues for renewable projects.
- FII interest increased slightly.
🌐 Industry
- Power sector is critical for India’s infrastructure growth.
- Industry PE at 30.0 suggests sector is fairly valued.
- Renewable energy focus provides long-term opportunities.
🔎 Conclusion
- SJVN offers stability with dividends and government backing but suffers from weak profitability and growth.
- Valuation is fair, but earnings momentum is negative.
- Best considered for long-term dividend-oriented investors with entry near ₹67–70.