SJVN

Dalal Street Investment Journal - - REVIEWS -

We had rec­om­mended SJVN Ltd in is­sue no. 11 dated May 1- May 14, 2017 un­der “Choice Scrip” sec­tion when the scrip was trad­ing at ₹35.05. Our rec­om­men­da­tion was backed by com­pany’s at­trac­tive val­u­a­tion and FY18 ex­e­cu­tion plans.

SJVN Lim­ited, a Mini Ratna com­pany, is a joint ven­ture of the Gov­ern­ment of In­dia and the Gov­ern­ment of Hi­machal Pradesh. SJVN is pri­mar­ily en­gaged in the busi­ness of gen­er­a­tion and trans­mis­sion of power. The com­pany op­er­ates in the ther­mal power seg­ment. It is im­ple­ment­ing projects in Hi­machal Pradesh, Ut­tarak­hand, Bi­har, Gu­jarat, Ra­jasthan and Arunan­chal Pradesh in In­dia, be­sides neigh­bour­ing coun­tries like Nepal and Bhutan. The in­stalled ca­pac­ity of the com­pany is ap­prox­i­mately 1,959.6 MW.

On the fi­nan­cial front, the com­pany’s to­tal in­come in­creased 7.2 per cent to ₹3,119.90 crore in FY17 com­pared to the pre­vi­ous fis­cal. More­over, the com­pany’s PBDT rose 7.20 per cent to ₹2,553.91 crore in FY17 from ₹2,382.28 crore in FY16. The com­pany’s net profit rose from ₹1,408.48 crore in FY16 to ₹1,544.14 crore in FY17, reg­is­ter­ing 9.63 per cent in­crease.

How­ever, on a quar­terly ba­sis, SJVN Ltd posted 5.26 per cent de­crease in its rev­enue to ₹701.78 crore in Q1FY18 from ₹740.76 crore in Q1FY17. The com­pany’s PBDT de­creased 10.39 per cent to ₹679.32 crore in the first quar­ter of FY18 on a yearly ba­sis.

The com­pany’s net profit also de­clined 5.86 per cent to ₹451.37 crore for the cor­re­spond­ing pe­riod. We do not see much im­prove­ment in the per­for­mance of the com­pany in the com­ing quar­ter. So we rec­om­mend our reader in­vestors to EXIT the scrip. (Clos­ing price as on Oct 05, 2017)

Scrip’s Move­ment

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