Sun. Jul 14th, 2024

Multibagger PSU Stocks SJVN Stock Breaks Below Key Support Levels. Possibility to purchase?

By Vaseline May31,2024

SJVN’s stock price rose nearly 260% in just one year, delivering multibagger profits to investors. Following the recent rise in the state-owned company’s share price, domestic brokerage Elara Capital maintained a “downgraded” recommendation for SJVN in its latest report, which followed the company’s fourth-quarter results. The brokerage firm believes that the valuation has already taken into account the potential growth in the short term. Project execution is also the most important thing that can be monitored, even with a robust project pipeline. Elara Capital thinks the stock could fall 4%.

SJVN stock price opened today at 135.75 apiece on BSE, the stock was trading in the red on Friday. SJVN’s stock price hit an intraday low 130.65 and an intraday high at 136.85 level.

Also Read: SJVN Stock Price Today Live Updates: SJVN Stock Plummets in Today’s Trading

According to Rajesh Bhosale, Equity Technical and Derivative Analyst, Angel One, stock prices have fallen below key supports in the near term. The collapse is in line with weakness in the broader market. Going forward, this weakness could continue, pushing prices towards 115-110; However, given the broader uptrend, such a dip would be a buying opportunity. 155–170 is immediately resisted.

Results Q4

SJVN recorded a more than twofold increase in consolidated profit 61.08 crore for the March quarter (Q4FY24), attributed to exceptional gains. In the same period last year, the company achieved a consolidated net profit of 17.21 crore, according to a BSE filing.

The company’s financial results for the quarter (Q4FY24) showed exceptional gains of 103.84 crore. But compared to the same quarter last year, the company’s total revenues fell to 573.23 crore of 582.78 crore.

In 2023-2024, the company’s consolidated net profit increased to 911.44 crore of 1,359.30 crore last year. In addition, total income for the fiscal year of 3,282.50 crore in 2022-2023 to 2,876.96 crore.

Also read: This PSU stock falls despite strong quarterly results, stock falls 5%

A final dividend of 0.65 per treasury share for the financial year 2023-2024 has been approved by the board of directors, pending approval by the shareholders at the next annual general meeting.

The interim dividend of 1.15 per share for FY24, announced in February 2024, is in addition to the final dividend, which will be paid within the statutory period.

The SJVN board also approved the signing of a 50:50 joint venture agreement with Indian Oil Corporation Ltd to establish a joint venture that would develop new technology-based projects as well as 24/7 green and renewable projects.

Here’s what the brokerage says

According to broker Elara Capital, SJVN won five solar projects totaling 2,252 MW in an open competitive bidding process in the fourth quarter. There are now twelve solar projects (2,048 MW), four hydropower projects (1,558 MW) and one thermal project (1,320 MW) under construction. It is developing renewable energy (RE) projects worth 7.2 GW.

In FY25, SJVN can install 2,048 MW of RE projects, and 4,777 MW in FY26. The commissioning of the Buxar capacity of 1,320 MW has been postponed due to unrest in the area. Unit one is expected to be commissioned in Q3FY25, and unit two in Q4FY25. The commissioning of the Arun-3 project was also postponed to Q3FY26.

“We are changing. The profit forecast for the financial year 25E-26E is estimated and we maintain our target price at 134, on 2x P/B regulated shares,” the brokerage said.

Also read: SJVN share price fell 19% after 51% decline in third quarter net profit

Disclaimer: The above views and recommendations are those of individual analysts, experts and brokerage firms, not Mint. We advise investors to consult certified experts before making investment decisions.

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