SJVN shares rise 5% on order win in Gujarat; check details

Shares of SJVN Ltd zoomed nearly 5% today after the company said it won an order worth Rs 1,100 crore for a solar power project in Gujarat.

The firm received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam (GUVNL) for a 200 MW solar power project in GUVNL Phase XXII.

The stock rose 4.8% to Rs 130.80 in the current session on BSE. Market cap of the firm stood at Rs 49,652 crore. A total of 26.09 lakh shares changed hands amounting to a turnover of Rs 33.22 crore on BSE.

SJVN shares have a beta of 1.1, indicating high volatility in a year. The stock hit a 52 week low of Rs 30.39 on March 27, 2023 and a 52 week high of Rs 170.45 on February 5, 2024.

In terms of technicals, the relative strength index (RSI) of the stock stands at 54.1, signaling it’s trading neither in the overbought nor in the oversold zone. SJVN shares are trading higher than the 5 day, 20 day, 30 day, 50 day, 100 day and 200 day moving averages.

The multibagger stock has gained 65% in six months and risen 308% in a year.

The ground-mounted solar project will be developed by the company’s arm SJVN Green Energy Ltd (SGEL) in through an EPC contract. The project will be commissioned in 18 months from the date of the power purchase agreement.

The project will be developed at Gujarat State Electricity Corporation Limited (GSECL) Solar Park at Khavda. The Power Purchase Agreement shall be executed with GUVNL after adoption of tariff by GERC. The project shall be commissioned in 18 months from the date of signing of PPA.

The PPA will be inked between GUVNL and SGEL for 25 years. The project is expected to generate 508.4 million units in first year after commissioning and the projected cumulative energy generation over a period of 25 years is 11,836.28 million units. The commissioning of this project is expected to trim 5,79,976 tonne of carbon emission and would contribute in the government’s mission of reduction in carbon emission.

SJVN Limited is engaged in the business of generation of electricity and the tariff for power generation. The company manufactures and provides three key products and services: generation of electricity (hydro, wind and solar), consultancy and transmission. Its businesses include thermal power, hydro power, wind power, solar power, power transmission, consultancy and power trading.