Why SJVN Share Price is Rising

SJVN, a public sector undertaking, has emerged as a standout performer in the renewable energy landscape. The company is strategically focused on hydropower projects.

Along with that, its expansion into other renewable energy segments has positioned it as a key player in India's green energy transition.

SJVN's stock price has exhibited exceptional growth, outpacing market benchmarks. The stock has delivered multibagger returns of 161.2% in the past year. In 2024 it has surged 63.2%. These remarkable gains underscore investors' confidence in the company's growth prospects.

Even today, the stock is in the limelight as it rallied 13% after it made an announcement. To fully comprehend the factors driving this exceptional performance, a detailed analysis is essential.

Let's explore the factors responsible for the stock's upward trajectory.

#1 Big Order Win

On 25 July 2024, SJVN received a Letter of Intent for the Darzo Lui Pumped Storage Project from the government of Mizoram.

This project will have an installed capacity of 2,400 MW. It is located across Darzo Nallah, a tributary of the Tuipui river. The estimated project cost is Rs 139.5 billion (bn), including IDC and financing costs at April 2023 price level. This is SJVN's first project in Mizoram.

The Darzo Lui Pumped Storage Project is an on-stream closed loop type. It will consist of eight units, each with a 300 MW capacity. The annual energy generation, with 95% plant availability, will be 4,993.2 MU.

The input energy required for pumping water to the upper reservoir is estimated at 6,331.7 MU, also with 95% availability. The project is expected to be completed within 72 months.

An agreement between SJVN and the government of Mizoram will be signed within three months.

SJVN's share price is rising because the market views this significant order win as a positive development for the company's future growth and revenue potential.

#2 Changes in Top Management

The Ministry of Power, through its order on 12 July 2024, has appointed Arindam Chaudhary and Mohammad Afzal as part-time official directors on SJVN's board of directors.

Arindam Chaudhary, Special Secretary (Power) of the Himachal Pradesh government, is now the government of Himachal Pradesh's nominee director for SJVN. He is an IAS officer of the 2014 batch with a Computer Science degree from BITS Pilani and extensive experience in governance and management.

Mohammad Afzal, Joint Secretary (Hydro) in the Ministry of Power, is now the government of India's nominee director for SJVN.

An IAS officer with a B.Sc. (Engg) in Electrical Engineering and an M.E. in Power System Engineering, he has over 25 years of experience. Mr. Afzal has worked in the Central Electricity Authority and served on the boards of Power Grid Corporation of India, NHPC, and PTC India.

SJVN's share price is rising due to increased market confidence in the company's leadership and governance.

What Next?

SJVN has several ambitious plans for the future. The company aims to expand its renewable energy portfolio significantly.

Currently, it has solar and wind projects with a combined capacity of 405 megawatts. By the end of FY25, it expects to add 2,000 megawatts. This is projected to grow to 6,000 megawatts by FY26. From FY27, the company expects to add approximately 2 gigawatts every year.

It has also entered into a joint venture with Indian Oil Corporation (IOC) which focuses on green energy. This partnership will cover hydro, renewable, and hydrogen sectors.

It also plans to collaborate on EV charging infrastructure. The JV aims to leverage IOC's financial strength to invest in significant projects like the Etalin hydro project in Arunachal Pradesh.

SJVN has also been involved in various large-scale projects recently. It commissioned the 50-megawatt Gujrai Solar Project in Uttar Pradesh and the 100-megawatt Raghanesda Solar Project in Gujarat.

These projects will contribute significantly to their annual revenues. Additionally, four projects totaling 260 megawatts were dedicated to the nation in March 2024.

The company's joint ventures extend to Assam and Maharashtra. It formed SGEL Assam Renewable Energy Limited for 1,000 megawatts of renewable projects in Assam. Another JV with MAHAGENCO aims to execute 5,000 megawatts of renewable projects in Maharashtra.

Financially, SJVN secured a Rs 100 bn construction line of credit for upcoming renewable energy projects. It also participating in the PM-Surya Ghar: Muft Bijli Yojana, which provides free electricity to one crore households in India.

The company is allocated projects in Himachal Pradesh, Punjab, and Arunachal Pradesh for this scheme. Looking ahead, SJVN is committed to achieving a 25,000-megawatt portfolio by 2030 and 50,000 megawatts by 2040.

It is designated as a Renewable Energy Implementing Agency by the Ministry of New and Renewable Energy. Its target is to contribute significantly to the national goal of 500 gigawatts by 2030.

How SJVN Share Price has Performed Recently

In the past five days, SJVN share price has rallied 6.6%. In 2024 so far, it is up 63.2%.

The stock surged 17.4% in the past six months and it rallied around 161.2% in the year gone by.

The stock touched its 52-week high of Rs 170.5 on 5 February 2024 and a 52-week low of Rs 52.7 on 9 August 2023.

About SJVN

SJVN, formerly known as Satluj Jal Vidyut Nigam, is an Indian public sector undertaking involved in hydroelectric power generation and transmission.

It was incorporated in 1988 as Nathpa Jhakri Power Corporation, a joint venture between the Government of India and the Government of Himachal Pradesh.

The company has a total operating hydropower capacity of 1,912 MW through its two hydropower plants - Nathpa Jhakri and Rampur.

In addition, it has an installed capacity of 97.6 MW of wind power and 81.9 MW of solar power.

SJVN is presently implementing or operating power projects in Himachal Pradesh, Uttarakhand, Bihar, Maharashtra, Uttar Pradesh, Punjab, Gujarat, Arunachal Pradesh, Rajasthan, Assam, Odisha, Mizoram, and Madhya Pradesh in India.

Apart from India, SJVN also has under-construction hydroelectric projects in Nepal and Bhutan.

To know more about the company, check out the SJVN fact sheet and quarterly results on our website.

You can also compare SJVN with its peers:

SJVN vs Torrent Power

SJVN vs Indian Energy Exchange

To know what's moving the Indian stock markets today, check out the most recent share market updates here.

Happy Investing.

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