Green energy stock jumps up to 3% after it signs 200 MW renewable energy project – EQ
In Short : The 3% jump in the green energy stock reflects the market’s recognition of the value and potential of the 200 MW renewable energy project.
In Detail : Multibagger Green energy stock jumped 3 percent in the day’s trade after it won an order to set up a 200 MW Grid Connected Wind Power Project from Solar Energy Corporation of India Limited.
At 12:38 p.m. the shares of SJVN Limited were trading at Rs. 76.65, up 1.93 percent from its previous day’s close price of Rs. 75.20 and its market capitalization is Rs. 30,157 Crores.
SJVN Green Energy Limited which is a wholly-owned subsidiary of SJVN Limited, bagged a 200 MW project at a tariff of Rs. 3.24 per unit on Build Own and Operate (BOO) basis in an Open Competitive Tariff bidding process and has signed a Power Purchase Agreement (PPA) for the 200 MW Grid Connected Wind Power Project with Solar Energy Corporation of India Limited.
SJVN Green Energy Limited (SGEL) had participated in the tariff-competitive Bidding process conducted by SECI for the Selection of Wind Power Developers for setting up 1,200 MW grid-connected Wind Power Projects anywhere in India, out of which SGEL bagged the 200 MW project.
The estimated cost for the development of the project is Rs. 1,400 Crores. The project is expected to generate 482 million units in the first year after commissioning and the projected cumulative energy generation over 25 years is 12,050 million units. It will be commissioned within 24 Months from the effective date of the PPA signing i.e., by November 2025.
It has delivered multi-bagger returns of 115 percent in a year and 107 percent in the last six months. A shareholder’s investment of Rs. 1 lakh in the company would be worth Rs. 2.15 lakh in a year.
Its revenue grew 21.57 percent from Rs. 2,417 Crores in FY22 to Rs. 2,938.35 Crores in FY23, accompanied by increasing profits of Rs. 989.8 Crores to Rs. 1,359.3 Crores.
It has reported a return on equity (ROE) of 10.06 percent and a return on capital employed of 9.08 percent, it is making decent returns on its equity and capital employed.
According to the latest shareholding data available for the quarter ended September 2023, the company’s Promoters hold 81.85 percent stake, the Foreign Institutional Investors (FII) hold 0.91 percent and the Domestic Institutional Investors hold 5.73 percent.
SJVN Limited is engaged in the business of generation, transmission, and consultancy of renewable energy sources like hydro energy, wind energy, and solar energy.
