NSEI:SJVN

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (5.8x) is below the Indian market (12.9x)

Earnings grew by 30.3% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -6.8% per year for the next 3 years

Unstable dividend track record



Snowflake Analysis

Flawless balance sheet with proven track record.

Share Price & News

How has SJVN's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SJVN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.4%

SJVN

0.7%

IN Electric Utilities

0.8%

IN Market


1 Year Return

-1.8%

SJVN

-0.2%

IN Electric Utilities

3.6%

IN Market

Return vs Industry: SJVN underperformed the Indian Electric Utilities industry which returned -0.2% over the past year.

Return vs Market: SJVN underperformed the Indian Market which returned 3.6% over the past year.


Shareholder returns

SJVNIndustryMarket
7 Day0.4%0.7%0.8%
30 Day1.6%2.5%0.6%
90 Day-4.2%-1.7%7.3%
1 Year7.1%-1.8%3.0%-0.2%5.6%3.6%
3 Year2.5%-18.1%17.8%8.5%34.1%27.0%
5 Year40.8%3.8%22.5%9.1%41.4%28.6%

Price Volatility Vs. Market

How volatile is SJVN's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

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

5.81x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SJVN (₹24.9) is trading above our estimate of fair value (₹22.34)

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


Price To Earnings Ratio

PE vs Industry: SJVN is good value based on its PE Ratio (5.8x) compared to the Electric Utilities industry average (10.1x).

PE vs Market: SJVN is good value based on its PE Ratio (5.8x) compared to the Indian market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: SJVN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: SJVN is good value based on its PB Ratio (0.8x) compared to the IN Electric Utilities industry average (1x).


Next Steps

Future Growth

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

-6.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SJVN's earnings are forecast to decline over the next 3 years (-6.8% per year).

Earnings vs Market: SJVN's earnings are forecast to decline over the next 3 years (-6.8% per year).

High Growth Earnings: SJVN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: SJVN's revenue is expected to decline over the next 3 years (-1.2% per year).

High Growth Revenue: SJVN's revenue is forecast to decline over the next 3 years (-1.2% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SJVN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has SJVN performed over the past 5 years?

-1.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SJVN has high quality earnings.

Growing Profit Margin: SJVN's current net profit margins (56.9%) are higher than last year (52.9%).


Past Earnings Growth Analysis

Earnings Trend: SJVN's earnings have declined by -1.1% per year over the past 5 years.

Accelerating Growth: SJVN's earnings growth over the past year (30.3%) exceeds its 5-year average (-1.1% per year).

Earnings vs Industry: SJVN earnings growth over the past year (30.3%) exceeded the Electric Utilities industry 14.9%.


Return on Equity

High ROE: SJVN's Return on Equity (14.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is SJVN's financial position?


Financial Position Analysis

Short Term Liabilities: SJVN's short term assets (₹50.5B) exceed its short term liabilities (₹12.1B).

Long Term Liabilities: SJVN's short term assets (₹50.5B) exceed its long term liabilities (₹28.5B).


Debt to Equity History and Analysis

Debt Level: SJVN's debt to equity ratio (16.4%) is considered satisfactory.

Reducing Debt: SJVN's debt to equity ratio has reduced from 26.5% to 16.4% over the past 5 years.

Debt Coverage: SJVN's debt is well covered by operating cash flow (51.7%).

Interest Coverage: SJVN earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: SJVN has a high level of physical assets or inventory.

Debt Coverage by Assets: SJVN's debt is covered by short term assets (assets are 2.6x debt).


Next Steps

Dividend

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

8.63%

Current Dividend Yield


Dividend Yield vs Market

company8.6%marketbottom25%0.6%markettop25%2.5%industryaverage4.2%forecastin3Years8.4%

Current dividend yield vs market & industry

Notable Dividend: SJVN's dividend (8.63%) is higher than the bottom 25% of dividend payers in the Indian market (0.59%).

High Dividend: SJVN's dividend (8.63%) is in the top 25% of dividend payers in the Indian market (2.54%)


Stability and Growth of Payments

Stable Dividend: SJVN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: SJVN's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.2%), SJVN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of SJVN's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Nand Sharma (55yo)

2yrs

Tenure

₹10,881,558

Compensation

Mr. Nand Lal Sharma has been Chairman and Managing Director of SJVN Limited since December 01, 2017. Mr. Sharma served as the Director of Personnel at SJVN Limited from March 22, 2011 to November 30, 2017  ...


CEO Compensation Analysis

Compensation vs Market: Nand's total compensation ($USD153.67K) is below average for companies of similar size in the Indian market ($USD662.36K).

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


Management Age and Tenure

2.0yrs

Average Tenure

59.5yo

Average Age

Experienced Management: SJVN's management team is not considered experienced ( 2 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

58yo

Average Age

Experienced Board: SJVN's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

Sell₹42,720,35615 Oct 19
India
EntityCompany
Shares4,272,044
Max Price₹10.00
Sell₹304,762,64002 Aug 19
India
EntityCompany
Shares30,476,470
Max Price₹10.00
Sell₹199,024,51229 Mar 19
India
EntityCompany
Shares19,902,572
Max Price₹10.00
Sell₹95,789,43920 Mar 19
India
EntityCompany
Shares9,578,964
Max Price₹10.00

Ownership Breakdown

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


Management Team

  • Rakesh Bansal (59yo)

    Director of Electrical & Whole Time Director

    • Tenure: 7.2yrs
    • Compensation: ₹9.97m
  • Nand Sharma (55yo)

    Chairman & MD

    • Tenure: 2yrs
    • Compensation: ₹10.88m
  • Amarjith Bindra (60yo)

    Whole Time Director

    • Tenure: 9yrs
    • Compensation: ₹10.33m
  • B. Negi

    Chief Vigilance Officer

    • Tenure: 0yrs
  • A. Mukherjee (61yo)

    General Manager of Personnel and Administration

    • Tenure: 0yrs
  • S. Pathak

    General Manager of Information Technology & Communications and General Manager of Electrical Design

    • Tenure: 0yrs
    • Compensation: ₹1.56m
  • Soumendra Das

    Compliance Officer & Company Secretary

    • Tenure: 8yrs
    • Compensation: ₹4.41m
  • Geeta Kapur

    Director of Personnel & Whole Time Director

    • Tenure: 1.2yrs
    • Compensation: ₹4.95m
  • Salil Shamshery

    Head of Corporate Information Technology & System Excellence (IT&SE) Department

    • Tenure: 1.9yrs
  • Akhileshwar Singh

    Chief Financial Officer

    • Tenure: 0.08yrs

Board Members

  • Rakesh Bansal (59yo)

    Director of Electrical & Whole Time Director

    • Tenure: 7.2yrs
    • Compensation: ₹9.97m
  • Nand Sharma (55yo)

    Chairman & MD

    • Tenure: 2yrs
    • Compensation: ₹10.88m
  • Amarjith Bindra (60yo)

    Whole Time Director

    • Tenure: 9yrs
    • Compensation: ₹10.33m
  • Aniruddha Kumar (57yo)

    Part Time Government Nominee Director

    • Tenure: 1.4yrs
  • Geeta Kapur

    Director of Personnel & Whole Time Director

    • Tenure: 1.2yrs
    • Compensation: ₹4.95m
  • Prabodh Saxena

    Government Nominee Director

    • Tenure: 1.2yrs
  • Subhash Chander Negi (69yo)

    Independent Director

    • Tenure: 0.8yrs
  • Rajnish Pande (57yo)

    Independent Director

    • Tenure: 0.8yrs
  • Surinder Bansal

    Director of Civil & Whole Time Director

    • Tenure: 0.7yrs

Company Information

SJVN Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: SJVN Limited
  • Ticker: SJVN
  • Exchange: NSEI
  • Founded: 1988
  • Industry: Electric Utilities
  • Sector: Utilities
  • Market Cap: ₹97.852b
  • Shares outstanding: 3.93b
  • Website: https://www.sjvn.nic.in

Number of Employees


Location

  • SJVN Limited
  • SJVN Corporate Office Complex
  • Shakti Sadan
  • Shimla
  • Himachal Pradesh
  • 171006
  • India

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SJVNNSEI (National Stock Exchange of India)YesEquity SharesININRMay 2010
533206BSE (Mumbai Stock Exchange)YesEquity SharesININRMay 2010

Biography

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 i ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/15 12:50
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2019/03/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.