SJVN jumps 3% powered by 100-MW solar project from Gujarat Urja Vikas Nigam

SJVN, The state-owned company has secured 100 MW solar power project from Gujarat Urja Vikas Nigam (GUVNL).

Shares of SJVN jumped more than 3 percent in early trade on December 27 on bagging a 100-MW solar power project from Gujarat Urja Vikas Nigam Limited (GUVNL). At 9:15am, the stock was trading at Rs 94.60 on the NSE.

The state-run company has secured the 100-MW solar power project from Gujarat Urja Vikas Nigam (GUVNL) worth Rs 2.63 per unit on a build, own and operate (BOO) basis, it said in a BSE filing on December 26.

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This ground-mounted solar project will be developed by the company’s wholly owned subsidiary SJVN Green Energy (SGEL) at a tentative cost of Rs 550 crore.

Check brokerage view, target price

Goldman Sachs has given hydroelectric power producer SJVN a double downgrade to ‘sell’ from ‘buy’ in a recently released report with a target price of Rs 65. It that the Street is not yet pricing in the delays in commissioning of Buxar and Arun-III which will further dampen the earnings going forward. So, there is an earnings risk as well going forward for SJVN.

Stock performance

The SJVN stock has given a return of 122.06 percent over the last six months. The benchmark Nifty50 index has given a return of 13.71 percent over same duration.