Buy Sjvn, target price Rs 148: IIFL Securities

On May 21st, IIFL Securities issued a 'buy' recommendation for the stock of Satluj Jal Vidyut Nigam Limited (SJVN), with a target price of Rs 148. This target price represents an upside potential of approximately 3.8% from the current market price of Rs 142.65. IIFL Securities cited the company's strong financial performance, robust order book, and growth prospects as reasons for their positive outlook on the stock.

About Sjvn:

Satluj Jal Vidyut Nigam Limited (SJVN) is a state-owned hydroelectricity generation company headquartered in Shimla, India. It is engaged in the generation and sale of hydroelectric power. SJVN has a total installed capacity of 2,015.5 MW, including 1,912 MW from hydroelectricity, 49.5 MW from wind power, and 54 MW from solar power. The company operates 13 hydropower plants, 9 wind power projects, and 1 solar power project across India, Nepal, and Bhutan. SJVN has plans to further expand its generation capacity to 5,000 MW by 2023 and 12,000 MW by 2030.

52 Week Price Trend:

SJVN (NSE: SJVN) is currently trading at Rs 142.65, within a range of its 52-week high of Rs 170.5 and 52-week low of Rs 30.39. The wide gap between the high and low prices indicates significant market volatility. SJVN's recent price movements suggest a potential correction after a strong rally. However, the stock still has room to grow considering its high 52-week high. Investors should monitor the market closely and consider the overall market conditions before making investment decisions.

Stratzy's MOST Analysis:

SJVN's BB rating under Stratzy's MOST framework reflects a balance between potential risks and rewards. While the company may exhibit some weaknesses in management, outlook, safety, or trend, these are not significant enough to raise major concerns. The BB rating indicates that SJVN carries a medium level of fundamental risk, but investors should still exercise caution and conduct thorough due diligence before investing.

Company's Fundamentals:

SJVN (NSE: SJVN) is a power generation and transmission company listed on the National Stock Exchange of India (NSE). Currently, its Stock PE (Price-to-Earnings) ratio is 52.93, indicating that investors are willing to pay Rs. 52.93 for every Re. 1 of earnings per share. Its PB Ratio (Price-to-Book) ratio is 3.3, meaning that the market value of its shares is 3.3 times its book value. Additionally, SJVN offers a Dividend Yield of 1.47%, which represents the annualized dividend paid out to shareholders relative to the current share price. These metrics provide insights into the company's valuation, profitability, and dividend payout policy, enabling investors to make informed decisions.

Fundamental and Technical information provided in this blog were last updated on 21 May, 2024

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