Accumulate SJVN; target of Rs 23: PLilladher

Prabhudas Lilladher`s research report on SJVN

"SJVN’s reported revenue in FY13 degrew by 12.7 percent YoY, as the generation dipped by 10.9 percent on the back of a 19.5 percent YoY dip in water discharge. Units generated in Q4FY13 stood at 605m, down by 4.6 percent YoY. PAT came in at Rs10.5bn which was flat YoY on account of lower interest charges. PAF for FY13 was at 105 percent. Incentives for FY13E were Rs2.5bn, mainly on account of higher-than-expected UI charges.”

“Rampur HEP in FY14E and 45MW of wind will start contributing to FY15E earnings. The generation this year was disappointing. However, the impact on the stock price would not be material as it provides a steady state dividend yield play. The stock is trading at 0.9x FY15E. We maintain 'Accumulate' on the stock with a price target of Rs 23,” says Prabhudas Lilladher research report.  

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