1. At a Glance
SJVN’s core business is hydroelectric generation with ~1,972 MW operational hydro capacity, complemented by wind and solar. The market cap: ₹36,555 Cr, CMP ₹93, trailing P/E at ~44×, ROCE ~4.9%, ROE ~5.8%—a PSU carrying premium multiples with subpar returns.
2. Introduction
Once a pure hydropower specialist, SJVN has transformed into a renewable conglomerate—now building thermal and solar capacity and constructing a 900 MW hydro plant in Nepal. With Navratna status and a massive portfolio ahead, it’s growth on autopilot—but investors are paying a hefty premium for it. Ready to see whether the infrastructure bet pays off or drowns?
3. Business Model (WTF Do They Even Do?)
Verticals:
- Hydro Power: Nathpa Jhakri, Rampur, Naitwar Mori ≈ 1,972 MW Wikipedia+15Wikipedia+15Yahoo Finance+15
- Renewables: Wind (~98 MW), Solar (~397 MW) operational Wikipedia
- Under Construction: Four hydro (1,558 MW), one thermal (1,320 MW), twelve solar (~2,058 MW) — total pipeline
- ≈ 4.9 GW Wikipedia+12Saur Energy+12Yahoo Finance+12
- International Project: Arun III, 900 MW in Nepal, expected 2027‑28 Wikipedia+5Wikipedia+5PSU Watch+5
4. Financials Overview
- P/E (TTM): ~44× Finology Ticker+11Groww+11Moneycontrol+11
- P/B: ~2.55× Groww+2GuruFocus+2
- Historical median P/E: ~10×; current level high relative to history PSU Watch+1
5. Valuation (Fair Value Range Only)
| Method | Basis | Multiple | Value (₹ Cr) | Per Share |
|---|---|---|---|---|
| P/E | EPS ₹2.1 × 15–20 | 15–20× | ₹10,300–13,700 | ₹55–73 |
| P/B | BVPS ₹36 × 2–3 | 2–3× | ₹26,600–39,900 | ₹72–102 |
| DCF | Modest growth, 10% discount | 10–15× | ~₹15,000 | ₹70–80 |
Fair Value Range: ₹55–80 per share.
Disclaimer: This FV range is for educational purposes only and is not investment advice.
6. What’s Cooking – News & Catalysts
- Renewable Projects Surge: Aggressive execution: 1 GW Bikaner solar + pipeline, expanding hydro & thermal footprint GuruFocus+2Investing.com India+2
