SJVN (NSEI:SJVN) - Share price, News & Analysis

Q: What is the Fair Price of SJVN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SJVN (₹32.3) is trading above our estimate of [[fair value]] (₹25.6)

SJVN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	1/6
Financial Health	4/6
Dividends	4/6

SJVN Stock Overview

SJVN Limited, together with its subsidiaries, engages in the generation and sale of power in India, Nepal, and Bhutan.

Rewards

Price-To-Earnings ratio (10.1x) is below the Indian market (22.1x)

Revenue is forecast to grow 32.35% per year

Trading at good value vs. peer average Price-To-Earnings ratio

Trading at good value vs. industry average Price-To-Earnings ratio

Trading below our calculated fair Price-To-Earnings ratio

Risk Analysis

Dividend of 5.26% is not well covered

Profit margins (45.6%) are lower than last year (68.1%)

SJVN Competitors

CESC

NSEI:CESC

₹105.1b

Torrent Power

NSEI:TORNTPOWER

₹250.8b

India Grid Trust

BSE:540565

₹101.3b

Tata Power

BSE:500400

₹717.7b

Price History & Performance

Summary of all time highs, changes and price drops for SJVN
Historical stock prices
Current Share Price	₹32.30
52 Week High	₹33.75
52 Week Low	₹25.45
Beta	0.31
1 Month Change	13.14%
3 Month Change	23.28%
1 Year Change	20.07%
3 Year Change	31.84%
5 Year Change	-0.15%
Change since IPO	28.69%

Recent News & Updates

Sep 23

Shareholders Will Probably Not Have Any Issues With SJVN Limited's (NSE:SJVN) CEO Compensation

Shareholders may be wondering what CEO Nand Sharma plans to do to improve the less than great performance at SJVN...

Sep 05

SJVN (NSE:SJVN) Is Increasing Its Dividend To ₹0.55

SJVN Limited's ( NSE:SJVN ) dividend will be increasing from last year's payment of the same period to ₹0.55 on 20th of...

Shareholder Returns

	SJVN	IN Electric Utilities	IN Market
7D	0.3%	-7.0%	-1.1%
1Y	20.1%	77.9%	0.5%

Return vs Industry: SJVN underperformed the Indian Electric Utilities industry which returned 77.9% over the past year.

Return vs Market: SJVN exceeded the Indian Market which returned 0.5% over the past year.

Price Volatility

Is SJVN's price volatile compared to industry and market?
SJVN volatility
SJVN Average Weekly Movement	2.9%
Electric Utilities Industry Average Movement	3.8%
Market Average Movement	5.8%
10% most volatile stocks in IN Market	9.1%
10% least volatile stocks in IN Market	3.7%

Stable Share Price: SJVN is less volatile than 75% of Indian stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: SJVN's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1988	1,418	Nand Sharma	https://www.sjvn.nic.in

SJVN Limited, together with its subsidiaries, engages in the generation and sale of power in India, Nepal, and Bhutan. It operates the Nathpa Jhakri Hydro Power Station with a capacity of 1500 MW located in Shimla District, as well as the Rampur Hydro Power Station with an installed capacity of 412 MW in Kullu District, Himachal Pradesh. The company also operates the Khirvire Wind Power Project with a capacity of 47.6 MW in Ahmednagar District, Maharashtra; the Sadla Wind Power Project with an installed capacity of 50 MW in Surendranagar District, Gujrat; the Charanka Solar Power Plant with a capacity of 5.6 MW in Patan district, Gujarat; and an 86 km cross border transmission line with a capacity of 400 kV from Muzaffarpur to Sursand.

SJVN Fundamentals Summary

How do SJVN's earnings and revenue compare to its market cap?
SJVN fundamental statistics
Market Cap	₹126.93b
Earnings (TTM)	₹12.57b
Revenue (TTM)	₹27.59b

10.1x

P/E Ratio

4.6x

P/S Ratio

Is SJVN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
SJVN income statement (TTM)
Revenue	₹27.59b
Cost of Revenue	₹404.00m
Gross Profit	₹27.18b
Other Expenses	₹14.61b
Earnings	₹12.57b

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	3.20
Gross Margin	98.54%
Net Profit Margin	45.56%
Debt/Equity Ratio	52.4%

How did SJVN perform over the long term?

See historical performance and comparison

Dividends

5.3%

Current Dividend Yield

54%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is SJVN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for SJVN?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for SJVN. This is calculated by dividing SJVN's market cap by their current preferred multiple.
What is SJVN's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	₹126.93b

SJVN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	6.3x
Enterprise Value/EBITDA	8.3x
PEG Ratio	1.9x

Price to Earnings Ratio vs Peers

How does SJVN's PE Ratio compare to its peers?

SJVN PE Ratio vs Peers

The above table shows the PE ratio for SJVN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	24.6x
CESC CESC	7.7x	9.3%	₹105.1b
TORNTPOWER Torrent Power	33.5x	28.8%	₹250.8b
540565 India Grid Trust	29.4x	12.8%	₹101.3b
500400 Tata Power	27.8x	23.8%	₹717.7b
SJVN SJVN	10.1x	5.4%	₹126.9b

Price-To-Earnings vs Peers: SJVN is good value based on its Price-To-Earnings Ratio (10.1x) compared to the peer average (24.6x).

Price to Earnings Ratio vs Industry

How does SJVN's PE Ratio compare vs other companies in the Asian Electric Utilities Industry?

Price-To-Earnings vs Industry: SJVN is good value based on its Price-To-Earnings Ratio (10.1x) compared to the Asian Electric Utilities industry average (14.9x)

Price to Earnings Ratio vs Fair Ratio

What is SJVN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

SJVN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	10.1x
Fair PE Ratio	13.6x

Price-To-Earnings vs Fair Ratio: SJVN is good value based on its Price-To-Earnings Ratio (10.1x) compared to the estimated Fair Price-To-Earnings Ratio (13.6x).

Share Price vs Fair Value

What is the Fair Price of SJVN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: SJVN (₹32.3) is trading above our estimate of fair value (₹25.6)

Significantly Below Fair Value: SJVN is trading above our estimate of fair value.

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Insufficient data to show price forecast.

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Future Growth

How is SJVN forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

5.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJVN's forecast earnings growth (5.4% per year) is below the savings rate (6.8%).

Earnings vs Market: SJVN's earnings (5.4% per year) are forecast to grow slower than the Indian market (18.6% per year).

High Growth Earnings: SJVN's earnings are forecast to grow, but not significantly.

Revenue vs Market: SJVN's revenue (32.3% per year) is forecast to grow faster than the Indian market (10.5% per year).

High Growth Revenue: SJVN's revenue (32.3% per year) is forecast to grow faster than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: SJVN's Return on Equity is forecast to be low in 3 years time (8.4%).

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Past Performance

How has SJVN performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-1.0%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: SJVN has high quality earnings.

Growing Profit Margin: SJVN's current net profit margins (45.6%) are lower than last year (68.1%).

Past Earnings Growth Analysis

Earnings Trend: SJVN's earnings have declined by 1% per year over the past 5 years.

Accelerating Growth: SJVN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: SJVN had negative earnings growth (-25.4%) over the past year, making it difficult to compare to the Electric Utilities industry average (-16.9%).

Return on Equity

High ROE: SJVN's Return on Equity (9.5%) is considered low.

Discover strong past performing companies

Financial Health

How is SJVN's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: SJVN's short term assets (₹41.3B) exceed its short term liabilities (₹26.2B).

Long Term Liabilities: SJVN's short term assets (₹41.3B) do not cover its long term liabilities (₹74.5B).

Debt to Equity History and Analysis

Debt Level: SJVN's net debt to equity ratio (36%) is considered satisfactory.

Reducing Debt: SJVN's debt to equity ratio has increased from 21% to 52.4% over the past 5 years.

Debt Coverage: SJVN's debt is well covered by operating cash flow (31%).

Interest Coverage: SJVN's interest payments on its debt are well covered by EBIT (18.3x coverage).

Balance Sheet

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Dividend

What is SJVN current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Cash Flow Coverage

5.26%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: SJVN's dividend (5.26%) is higher than the bottom 25% of dividend payers in the Indian market (0.35%).

High Dividend: SJVN's dividend (5.26%) is in the top 25% of dividend payers in the Indian market (1.6%)

Stability and Growth of Payments

Stable Dividend: SJVN's dividend payments have been volatile in the past 10 years.

Growing Dividend: SJVN's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (54.1%), SJVN's dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: SJVN is paying a dividend but the company has no free cash flows.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

3.4yrs

Average management tenure

CEO

Nand Sharma (58 yo)

4.75yrs

Tenure

₹12,936,134

Compensation

Shri Nand Lal Sharma has been the Chairman and Managing Director of SJVN Limited since December 1, 2017 and has been its Director since March 22, 2011. Prior to this, he was holding the post of Director (P...

CEO Compensation Analysis

Compensation vs Market: Nand's total compensation ($USD159.46K) is below average for companies of similar size in the Indian market ($USD586.86K).

Compensation vs Earnings: Nand's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.

Leadership Team

Experienced Management: SJVN's management team is considered experienced (3.4 years average tenure).

Board Members

Experienced Board: SJVN's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Top Shareholders

Top 21 shareholders own 93.36% of the company

Ownership	Name	Shares	Current Value	Change %	Portfolio %
59.92%	India	2,354,812,133	₹76.1b	0%	no data
26.85%	Government of Himachal Pradesh	1,055,014,800	₹34.1b	0%	no data
1.94%	SBI Funds Management Limited	76,339,578	₹2.5b	0%	0.06%
0.94%	Edgbaston Investment Partners LLP	37,100,086	₹1.2b	0%	17.06%
0.88%	Nippon Life India Asset Management Limited	34,483,811	₹1.1b	0%	0.06%
0.72%	Life Insurance Corporation of India, Asset Management Arm	28,413,259	₹917.7m	0%	0.01%
0.58%	ICICI Prudential Asset Management Company Limited	22,837,238	₹737.6m	24.54%	0.02%
0.46%	ICICI Lombard General Insurance Company Limited, Asset Management Arm	18,200,502	₹587.9m	0%	4.95%
0.29%	BNY Mellon Asset Management	11,496,425	₹371.3m	2.1%	no data
0.26%	Fairfax India Holdings Corporation	10,139,041	₹327.5m	0%	no data
0.25%	HDFC Asset Management Company Limited	9,852,700	₹318.2m	0%	0.01%
0.2%	Phoenix Investment Adviser LLC	7,821,155	₹252.6m	0%	11.46%
0.028%	Eaton Vance Management	1,107,100	₹35.8m	0%	no data
0.013%	SEI Investments Company	502,882	₹16.2m	0%	no data
0.0061%	Northern Trust Global Investments	240,812	₹7.8m	0%	no data
0.005%	Motilal Oswal Asset Management Company Limited	194,479	₹6.3m	1.65%	no data
0.0027%	Acadian Asset Management LLC	104,000	₹3.4m	0%	no data
0.002%	Segall Bryant & Hamill, LLC	77,130	₹2.5m	0%	no data
0.0017%	Investor Education and Protection Fund (IEPF)	68,048	₹2.2m	14.46%	no data
0.00006%	Nand Sharma	2,457	₹79.4k	0%	no data
0.00003%	Sushil Sharma	1,000	₹32.3k	0%	no data

Ticker	Exchange	Primary Security	Security Type	Country	Currency	Listed on
SJVN	NSEI (National Stock Exchange of India)	Yes	Equity Shares	IN	INR	May 2010
533206	BSE (Mumbai Stock Exchange)	Yes	Equity Shares	IN	INR	May 2010

Data	Last Updated (UTC time)
Company Analysis	2022/09/24 00:00
End of Day Share Price	2022/09/23 00:00
Earnings	2022/06/30
Annual Earnings	2022/03/31