SJVN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | SJVN | Market Cap | 31,038 Cr. | Current Price | 79.0 ₹ | High / Low | 108 ₹ |
| Stock P/E | 34.0 | Book Value | 37.6 ₹ | Dividend Yield | 1.85 % | ROCE | 8.36 % |
| ROE | 6.86 % | Face Value | 10.0 ₹ | DMA 50 | 74.2 ₹ | DMA 200 | 81.2 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | -0.25 % | PAT Qtr | 252 Cr. | PAT Prev Qtr | 372 Cr. |
| RSI | 58.9 | MACD | 2.67 | Volume | 59,25,409 | Avg Vol 1Wk | 72,85,724 |
| Low price | 63.0 ₹ | High price | 108 ₹ | PEG Ratio | -39.1 | Debt to equity | 0.70 |
| 52w Index | 35.9 % | Qtr Profit Var | 80.8 % | EPS | 2.32 ₹ | Industry PE | 31.0 |
📊 SJVN shows weak fundamentals with low ROE (6.86%) and ROCE (8.36%), indicating limited efficiency in generating returns. The company has moderate leverage (Debt-to-equity: 0.70), which adds risk. Valuation appears stretched with a P/E of 34.0 compared to industry PE of 31.0, and a negative PEG ratio (-39.1) highlights poor earnings growth relative to valuation. Current price ₹79 is above its 50 DMA but below 200 DMA, suggesting short-term momentum but medium-term resistance. Entry zone is attractive near ₹75–77 for traders, while long-term investors should remain cautious.
💡 Holding strategy: Short-to-medium term trades can be considered if price sustains above ₹80 with exit near ₹95–100 resistance. Long-term holding is not recommended unless ROE/ROCE improve significantly.
Positive
- 📈 Strong quarterly profit variance (80.8%).
- 💰 Dividend yield of 1.85% provides some income stability.
- 🔎 EPS of ₹2.32 shows earnings visibility.
Limitation
- ⚠️ Low ROE (6.86%) and ROCE (8.36%) indicate weak capital efficiency.
- 📊 Negative PEG ratio (-39.1) reflects poor growth prospects.
- 📉 Current P/E (34.0) is higher than industry average, suggesting overvaluation.
Company Negative News
- 📉 PAT declined from ₹372 Cr. to ₹252 Cr. QoQ.
- 📊 DII holding reduced (-0.25%), showing weaker domestic institutional confidence.
Company Positive News
- 📈 Slight increase in FII holding (+0.06%).
- 📊 Strong trading volume and rebound from 52-week low.
Industry
- 🏦 Industry PE at 31.0 is slightly lower than SJVN’s 34.0, indicating relative overvaluation.
- ⚡ Power sector remains volatile, influenced by renewable energy adoption and government policies.
Conclusion
⚖️ SJVN shows short-term bullish momentum but weak fundamentals. Traders may consider entries near ₹75–77 with stop-loss at ₹72 and exits near ₹95–100. Long-term investors should remain cautious due to low ROE/ROCE and poor earnings growth relative to valuation.
This HTML report highlights SJVN’s weak fundamentals but short-term trading potential. Would you like me to extend this by comparing SJVN’s valuation and efficiency metrics against NTPC and NHPC to see if they offer stronger long-term opportunities in the power sector?