SJVN share price fell sharply to an intraday low of Rs 136.51 per share on the National Stock Exchange (NSE) on August 21, slipping 1.46 percent from its previous close price after Goldman Sachs maintained its 'SELL' recommendation on the state-run hydropower producer.
The analysts at the global brokerage recommended a target price of Rs 85 per share. However, this was an increase from an earlier recommendation of Rs 75 apiece.
The revised price target implies a potential downside of 38 percent from the current levels in Wednesday's trading session.
The brokerage, in its report, said the commissioning of SJVN's 1,320 MW Thermal Power Plant at Buxar has been delayed further. While Unit-1 is now expected to be commissioned by the end of financial year 2025, Unit 2 will be commissioned in financial year 2026.
"At 3.2x P/BV H1FY27E risk-reward looks unfavorable," it said in its report.
The company is engaged in the business of Electricity generation. It is also engaged in the business of providing consultancy for hydro-power projects.
It is also looking to raise Rs 2,000 crore via SJVN Green Energy Intimal Public Offering (IPO).
The counter has been in the red since the last three days and has fallen 4.3 per cent in the period, trading lower than 5-50 day moving averages.
The company in July announced that it received a Letter of Intent (LoI) from the Government of Mizoram for the allotment of the Darzo Lui Pumped Storage Project. The project has an estimated completion cost of Rs 13,947.50 crore, including IDC (interest during construction) and financing costs at the April 2023 price level, the company said in an exchange filing.
The hydropower company posted a 31 percent on-year rise in consolidated net profit at Rs 357 crore in Q1FY25 on account of higher income. Its total income jumped 29 percent YoY to Rs 958.47 crore
The PSU firm's expenses stood at Rs 476.39 crore as against Rs 362.60 crore in the first quarter last fiscal.
In line with bull rally in the PSU segment, the counter has delivered multibagger returns of 145.94 percent in the last 365 days, as per BSE data.
Disclaimer: The views and investment tips expressed by investment experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
