SJVN - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 3.4
| Stock Code | SJVN | Market Cap | 28,758 Cr. | Current Price | 73.2 ₹ | High / Low | 106 ₹ |
| Stock P/E | 28.5 | Book Value | 37.4 ₹ | Dividend Yield | 2.00 % | ROCE | 10.0 % |
| ROE | 7.06 % | Face Value | 10.0 ₹ | DMA 50 | 75.1 ₹ | DMA 200 | 80.6 ₹ |
| Chg in FII Hold | 0.06 % | Chg in DII Hold | -0.25 % | PAT Qtr | 125 Cr. | PAT Prev Qtr | 252 Cr. |
| RSI | 42.8 | MACD | -0.38 | Volume | 21,53,025 | Avg Vol 1Wk | 47,60,431 |
| Low price | 63.0 ₹ | High price | 106 ₹ | PEG Ratio | -2.79 | Debt to equity | 0.72 |
| 52w Index | 23.6 % | Qtr Profit Var | 308 % | EPS | 2.56 ₹ | Industry PE | 28.7 |
📊 Financials: SJVN has a market cap of ₹28,758 Cr. Quarterly PAT dropped sharply from ₹252 Cr. to ₹125 Cr., showing volatility despite a reported 308% YoY profit variation. ROE at 7.06% is modest, while ROCE at 10.0% reflects average capital efficiency. Debt-to-equity ratio of 0.72 indicates moderate leverage. Dividend yield of 2.00% provides some income stability.
💹 Valuation: Current P/E of 28.5 is aligned with the industry average of 28.7, suggesting fair valuation. P/B ratio (~1.95) is reasonable compared to book value ₹37.4. PEG ratio is negative (-2.79), indicating earnings growth is not supporting valuation. Intrinsic value appears close to CMP ₹73.2, leaving limited upside.
🏦 Business Model: SJVN operates in the power generation sector, focusing on hydro and renewable energy projects. Its competitive advantage lies in government backing and long-term power purchase agreements. However, profitability is cyclical, tied to project execution and energy demand.
📉 Entry Zone: RSI at 42.8 suggests neutral momentum, while MACD at -0.38 indicates mild bearishness. A potential entry zone could be around ₹65–₹70 for accumulation. Long-term investors may hold for dividend yield and exposure to renewables, but growth remains constrained.
Positive
- 📈 Dividend yield of 2.00% provides steady income.
- ⚡ Government-backed projects ensure stability.
- 🌱 Focus on renewable energy expansion.
Limitation
- ⚠️ Low ROE (7.06%) and modest ROCE (10.0%).
- 📉 Volatile quarterly profits (PAT halved QoQ).
- 🔄 PEG ratio negative (-2.79), weak growth support.
Company Negative News
- 📉 Decline in DII holding (-0.25%).
- ⚠️ Stock trading below DMA 200 (80.6).
Company Positive News
- 📊 YoY profit variation reported at 308%.
- 📈 Slight increase in FII holding (+0.06%).
Industry
- 💹 Industry PE at 28.7, in line with SJVN’s 28.5.
- ⚡ Renewable energy sector gaining policy support.
- 🏦 Competition from private and government players in power generation.
Conclusion
⚖️ SJVN offers stability through government-backed projects and dividend yield, but profitability remains volatile and growth prospects are limited. Valuation is fair, with potential entry around ₹65–₹70 for long-term investors seeking exposure to renewables and steady dividends.
For a broader view, you could explore SJVN peer comparison or a technical chart analysis to complement this fundamental assessment.