SJVN

Short-Term Bounce Amid Long-Term Challenges in Renewables Expansion

📈 Stock Price Overview (as of today): Current Price: ₹96.97 Previous Close: ₹93.36 Day Range: ₹93.36 – ₹97.32 52‑Week Range: ₹80.54 – ₹159.65 💼 Market Metrics: Market Capitalisation: ~₹38,100 Cr P/E Ratio (TTM): ~46.5 P/B Ratio: ~2.7 Dividend Yield: ~1.8% ROE: ~5.8% 📊 Q4 FY2024–25 (Jan–Mar 2025) Highlights: Total Income (quarterly): ~₹555–₹560 Cr (↓ ~18% YoY; ↓ ~27% QoQ) Net Loss: ~₹127–₹132 Cr (vs profit ~₹61 Cr YoY) Operating Margin: ~–6.8% Dividend for FY25: ₹1.46/share (₹1.15 interim + ₹0.31 final) ⚙️ Key Drivers of Decline: Sharp drop in revenues (QoQ and YoY) Surge in operating and depreciation costs Absence of one-time gains that supported last year’s earnings Still, the full-year FY25 profit (~₹818 Cr) reflects resilience, albeit lower than FY24. 🔍 Market Reaction & Technicals: Post-Q4 results on May 30, shares fell ~4.8%, dipping to ~₹97.30 intraday Today’s ~3.8% rebound suggests short-term recovery Technical sentiment is mixed to bearish; analysts rate it “neutral” with a ~₹72 average target (implying ~25% downside) 🏗 Company Overview: PSU hydropower leader with installed capacity ~1,972 MW hydro, ~98 MW wind, ~397 MW solar Navratna status with ~60% ownership by Central Govt and ~27% by Himachal Pradesh Actively expanding into renewables and cross-border transmission ventures ✅ Summary & Outlook: Short-term traders: May consider the bounce, but beware of recent earnings weakness and technical risks. Long-term investors: SJVN remains strategically placed in renewable energy infrastructure, but valuation is steep and performance needs improvement.