1. At a Glance
From Himachal’s icy rivers to Rajasthan’s scorching sun, SJVN is trying to be India’s next power blend: hydro, solar, floating, pumped, you name it. But with profits dipping and PE hitting the Himalayas, is it a future megawatt king or a PSU pretending to be cool?
2. Introduction with Hook
Imagine a mountain monk who suddenly joins a rock band. That’s SJVN’s transition—from a sleepy hydro PSU to a wannabe renewables disruptor. It got Navratna status in 2024, but let’s be honest: investors still can’t tell if it’s a reliable energy stock or just another capital-heavy dreamer.
- Market Cap: ₹38,921 Cr
- Stock P/E: 47.6x
- ROE: Just 5.79%
- Dividend Payout: 66.3% – Your PSU uncle would approve
3. Business Model (WTF Do They Even Do?)
SJVN is a power-generation PSU with:
1. Hydro (Legacy Core)
- 3 operational plants: 1,972 MW
- 4 under construction: 1,558 MW
2. Solar + Wind + Floating Solar
- Omkareshwar, Bikaner, and more – adding 3,000+ MW
3. Pumped Storage Projects (PSPs)
- Signed MoUs worth 8,000+ MW
4. Consultancy
- “Advisor” for hydro-power projects (yes, even PSU powerplants have side hustles)
It wants 25 GW installed capacity by 2030. So far? 2.3 GW.
4. Financials Overview
| Metric | FY25 |
|---|---|
| Revenue | ₹3,072 Cr |
| Net Profit | ₹818 Cr |
| OPM | 72% (blessing of hydro margins) |
| ROCE | 4.87% |
| ROE | 5.79% |
TTM Sales Growth: 19% (thanks, sun gods!)
TTM Profit Growth: -1% (wait, what?)
Great margins. But earnings are sunburned.
5. Valuation
- P/E: 47.6x (Higher than Adani Green. Yes, really.)
- P/B: 2.74x
- Book Value: ₹36.1
Fair Value Estimate (Blended):
₹70 – ₹88
Current price of ₹99? Riding on future capacity dreams and FOMO, not fundamentals.
6. What’s Cooking – News, Triggers, Drama
- Trial Run Success: 241.77 MW Bikaner solar—live!
- Omkareshwar Floating Solar (90 MW): Commissioned
- PSP Bonanza: MoUs signed for over 8,100 MW
- Rajasthan Mega Solar: 7 GW MoU inked
- Nepal Project: Upper Karnali 900 MW revival in works
- CMD Musical Chairs: Interim CMD shuffle – classic PSU theatre
7. Balance Sheet
| Metric | FY25 |
|---|---|
| Equity Capital | ₹3,930 Cr |
| Reserves | ₹10,249 Cr |
| Borrowings | ₹27,025 Cr |
| Total Liabilities | ₹46,063 Cr |
| CWIP | ₹26,162 Cr |
| Fixed Assets | ₹11,863 Cr |
🚨 Key Alarm:
- Debt up >3x in 3 years
- CWIP is >65% of total fixed assets – projects are still in womb stage
8. Cash Flow – Sab Number Game Hai
| ₹ Cr | FY23 | FY24 | FY25 |
|---|---|---|---|
| Operating | 1,632 | 1,310 | 2,483 |
| Investing | -6,877 | -5,502 | -6,430 |
| Financing | 5,559 | 4,502 | 3,939 |
| Net Cash Flow | +314 | +309 | -8 |
Cash from ops is good. But outflows from solar sprints and hydro tunnels are nuking the bank balance.
9. Ratios – Sexy or Stressy?
| Ratio | FY25 |
|---|---|
| ROE | 5.79% |
| ROCE | 4.87% |
| OPM | 72% |
| EPS | ₹2.09 |
| D/E | 6.88x |
| Dividend Yield | 1.82% |
| Working Capital Days | -323 (efficient or desperate?) |
Verdict: Sexy margins. But capital structure? Stressy AF.
10. P&L Breakdown – Show Me the Money
| Metric (₹ Cr) | FY25 |
|---|---|
| Revenue | ₹3,072 |
| Operating Profit | ₹2,208 |
| Other Income | ₹310 |
| Interest | ₹743 |
| Depreciation | ₹676 |
| PBT | ₹1,099 |
| PAT | ₹818 |
High EBITDA, but interest eats up gains like termites. PAT growth = zero enthusiasm.
11. Peer Comparison
| Company | Sales (₹ Cr) | PAT (₹ Cr) | ROE | P/E | OPM |
|---|---|---|---|---|---|
| NTPC | 1,88,138 | 23,422 | 13.6% | 14.1x | 28.7% |
| NHPC | 10,379 | 3,006 | 7.7% | 29.4x | 53.2% |
| Adani Green | 11,212 | 1,664 | 14.6% | 100.7x | 79.2% |
| SJVN | 3,072 | 818 | 5.8% | 47.6x | 72.0% |
SJVN’s valuation has taken steroids, but profits haven’t done push-ups. PSU DNA, private sector price.
12. Miscellaneous – Shareholding, Promoters
- Promoter (Govt): 81.85%
- FIIs: 2.5% (tiny slice, but slowly rising)
- DIIs: 4.1%
- Public: 11.5%
- Retail Shareholders: 15 lakh+ (mass retail darling)
Navratna tag in 2024 attracted investor buzz. But crowd = not always conviction.
13. EduInvesting Verdict™
SJVN is riding India’s renewable wave with ambition—floating solar, mega PSPs, international ventures. But the financials scream “wait and watch.” Profit is flat. Debt is Himalayan. And future projects? Still scaffolding and PowerPoint slides.
At 47x PE, the stock is priced like it already solved India’s energy problem. News flows are hot, but numbers are lukewarm.
This is a story stock. If the execution matches the PR, it could light up portfolios. If not, it may just light up Twitter.
Metadata
– Written by EduInvesting Team | 15 July 2025
– Tags: SJVN, Renewable Energy, Hydro Power, PSU Stocks, Navratna, Floating Solar, Pumped Storage, Power Generation
