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Green Energy Stock Soars

13 Oct 2023

In a significant move for the green energy sector, a prominent renewable energy company witnessed a 5% surge in its stock price following the acquisition of a major order. The company, SJVN Green Energy Limited (SGEL), a subsidiary of SJVN, secured an order from Rajasthan Urja Vikas Nigam Limited (RUVNL) for the development and commissioning of a 100 MW Solar project valued at ₹600 Crores.

As of 2:20 p.m., shares of SJVN were trading at ₹74.45, marking a 5% increase from the previous day's closing price. The company currently boasts a market capitalization of ₹28,722 Crores.

Key Project Details

SGEL's latest achievement includes the award of a letter of award from Rajasthan Urja Vikas Nigam Limited (RUVNL) for the development of a 100 MW Solar Power Project to be located anywhere in the state of Rajasthan. The Solar project will follow the Build Own and Operate (BOO) model, with an estimated construction and development cost of approximately ₹600 Crores.

Over its operational lifetime, the project is expected to generate about 252 Million units (MUs) in the first year, with cumulative energy production reaching around 5,866 MUs over 25 years.

The commissioning of the project is slated for completion within 18 months from the signing of the Power Purchase Agreement (PPA). The PPA will be inked between RUVNL and SGEL, encompassing a 25-year commitment.

In addition to its contribution to the state's renewable energy capacity, the project is set to have a significant environmental impact, reducing carbon emissions by approximately 287,434 tonnes. This aligns with the Government of India's mission to combat carbon emissions and promote sustainability.

Strong Financial Performance and Returns

SJVN has exhibited robust financial performance, reporting a 21.57% increase in revenue, surging from ₹2,417 Crores in FY22 to ₹2,938.35 Crores in FY23. Profits have mirrored this growth, escalating from ₹989.8 Crores to ₹1,359.3 Crores.

The company's financial health is underscored by a Return on Equity (ROE) of 10.06% and a Return on Capital Employed (ROCE) of 9.08%. These metrics reflect the company's ability to generate favorable returns on its equity and capital investments.

Shareholder Landscape

As of the latest shareholding data available for the June 2023 quarter, the company's Promoters retain a substantial 81.85% stake. Domestic Institutional Investors hold 5.73%, while Foreign Institutional Investors (FII) possess 0.91% of the company.

Company Overview

SJVN Limited is a prominent player in the renewable energy sector, engaged in the generation, transmission, and consultancy of renewable energy sources. The company specializes in hydro energy, wind energy, and solar energy, contributing to India's sustainable energy landscape.

The company's recent order win and strong financial performance highlight its commitment to expanding India's renewable energy infrastructure and fostering sustainability.

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