SJVN was listed on the NSE and BSE on May 20, 2010. In the last five years, the company has given a massive return of more than 300% to its investors. Will SJVN continue to provide such great returns in the future as well? Let’s explore SJVN’s growth potential and SJVN share price target from 2025 to 2050 in this article.
About SJVN
SJVN Limited is an Indian government-owned company that produces electricity from hydro, wind, solar, and thermal sources. It was formed in 1988 as a joint venture between the Government of India and the Government of Himachal Pradesh. The company began with the development of the Nathpa Jhakri Hydroelectric Project and has since expanded its operations throughout India and overseas. SJVN contributes significantly to clean energy production and India’s renewable energy goals.
SJVN Business Model
- Electricity Generation: SJVN generates electricity primarily from hydropower plants and sells it to state electricity boards and other consumers.
- Renewable Energy: SJVN is expanding into solar and wind energy projects, selling the generated power to a variety of customers.
- Consultancy Services: SJVN provides consulting services for hydro, solar, and wind power projects, with fees for design, planning, and execution.
- Government Contracts: Earns from government projects SJVN works on government-approved energy projects and earns revenue through long-term agreements.
- International Projects: SJVN develops power projects in Nepal and Bhutan, generating revenue through international power agreements.
SJVN Fundamental Analysis
| Stock Name | SJVN Ltd. |
|---|---|
| NSE Symbol | SJVN |
| Market Cap | ₹ 33733 Cr. |
| 52W High | ₹ 160 |
| 52W Low | ₹ 80.5 |
| Stock P/E | 36.8 |
| Book Value | ₹ 37.2 |
| Dividend Yield | 2.06 % |
| ROCE | 4.99 % |
| ROE | 5.90 |
| Face Value | ₹ 10.0 |
| Shareholders | Mar 2023 | Mar 2024 | Dec 2024 |
|---|---|---|---|
| Promoters | 86.77% | 81.85% | 81.85% |
| FIIs | 1.75% | 2.36% | 2.42% |
| DIIs | 4.06% | 3.36% | 4.10% |
| Public | 7.41% | 12.42% | 11.63% |
| No. of Shareholders | 3,16,055 | 11,81,241 | 15,45,820 |
Key Factors Driving SJVN Future Growth
- Government Support: SJVN benefits from strong government support because it is a public-sector enterprise. SJVN can expand its projects due to government policies that promote renewable energy and infrastructure development.
- Focus on Renewable Energy: SJVN is increasing its investment in renewable energy projects, including solar and wind. This shift to clean energy aligns with India’s renewable energy targets and ensures long-term growth.
- Expansion of Hydro Projects: SJVN is expanding its hydroelectric projects in India and neighbouring countries. These projects will increase electricity production and revenue generation.
- Power Purchase Agreements (PPAs): SJVN deals long-term contracts with state governments and power distribution companies to ensure consistent income and reduce financial risks.
- Diversification into Thermal Power: SJVN is not limited to hydropower or renewable energy. It is also investing in thermal power plants to balance its energy mix and meet rising electricity demand.
- Growing Demand for Electricity: As India’s population and industries expand, so does electricity demand. SJVN, as a power producer, is well positioned to benefit from the rising demand.
- Technological Advancements: SJVN is adopting modern technology in power generation and grid management, improving efficiency and reducing operational costs.
Pros of SJVN
- High Promoter Holding: Sjvn has a strong promoter holding of 81.8%, indicating the promoters’ high confidence in the company’s future growth and stability.
- Increase in Institutional Confidence: DIIs have increased their holding to 4.10% in December 2024 from 4.29% in September 2024 while FIIs have increased their holding to 2.42% in December 2024 from 2.39% in September 2024, indicating a strong institutional confidence in the company’s future growth prospects.
Cons of SJVN
- Decreasing Sales – Sjvn sales is decreasing at a CAGR of -1% over the last five Years.
- Decreasing Profits -Sjvn profit is decreasing at a CAGR of -24% over the last three Years.
- Overvaluation Concern: Sjvn is trading at a PE ratio of 37.6, which is relatively higher than the industry average of 28.5, which indicates that the stock may be overvalued compared to its peers.
- High Financial Risk: Sjvn has a high debt-to-equity ratio of 1.63, indicating a strong dependency on debt. This increases financial risk, raises interest costs, and may have an impact on profitability.
| Years | Target Price |
|---|---|
| SJVN Share Price Target 2025 | ₹110 to ₹135 |
| SJVN Share Price Target 2026 | ₹100 to ₹180 |
| SJVN Share Price Target 2027 | ₹130 to ₹230 |
| SJVN Share Price Target 2028 | ₹150 to ₹300 |
| SJVN Share Price Target 2029 | ₹180 to ₹390 |
| SJVN Share Price Target 2030 | ₹220 to 500 |
| SJVN Share Price Target 2035 | ₹430 to ₹1500 |
| SJVN Share Price Target 2040 | ₹860 to ₹4600 |
| SJVN Share Price Target 2050 | ₹3500 to ₹27000 |
Conclusion
SJVN has shown strong growth in the past five years, delivering impressive returns to investors. With government support, expansion into renewable energy, and international projects, SJVN is well-positioned for future growth. However, challenges like declining sales, decreasing profits, and high debt levels pose risks. The company’s focus on hydro, solar, wind, and thermal power, along with long-term power purchase agreements, provides stability. While SJVN’s stock appears overvalued, its long-term growth potential remains promising. Investors should weigh the opportunities and risks before making investment decisions. For the latest updates, you can visit SJVN official website.
Disclaimer
This article is for educational purposes only. It is not a stock recommendation and should not be treated as such. Please ask your financial advisor before making any investment decision.