SJVN (SJVN IN) India
Utilities
SJVN is a promising play on the growing renewables sector in India. It is an efficient hydropower generation public sector enterprise with an installed capacity of ~2GW. It shall see its capacity more than double to 5.5GW by FY24 through a mix of hydro, other renewables, and one thermal power project. While such an expansion will lead to an increase in debt, the impact would be offset by an expected increase in operating leverage as and when new plants commence operations. Trading at a reasonable trailing valuation of 12.6x P/E, 0.9x P/B, and 1 mln USD/MW EV-to-capacity, the stock offers a decent dividend yield of 5.5% and an upside potential of 30%+ in 12-18 months.
Edition: 156
- 17 March, 2023