SJVN shares jump over 10%, hit 52-week high on solar power project deal
SJVN shares jumped 10.5% to hit a 52-week high of Rs 70.7 in Monday's trade on BSE after the company's subsidiary SJVN Green Energy (SGEL) signed a power purchase agreement with Bhakra Beas Management Board (BBMB) to develop an 18 MW solar power project.
«The project will be developed on the land parcels of BBMB in the states of Himachal Pradesh & Punjab. The project is scheduled to be commissioned by August 2024,» the company said in an exchange filing.
The project has been secured through open competitive bidding at a tariff of Rs 2.63/- in the e-reverse auction organized by the Punjab Energy Development Agency, SJVN said.
The project will generate 39.42 million units of energy in the first year of operation, and the cumulative energy generation over a period of 25 years would be about 917 million units, the company added.
The Power Purchase Agreement for the power produced from the project has been signed with BBMB for 25 years.
SJVN plans to install over 10,000 MW renewable energy capacity in three years while progressing towards its shared vision of becoming a company of 25000 MW by 2030 and 50000 MW by 2040, the company said.
At 10.18 am, the scrip was trading 8.8% higher at Rs 69.6 on BSE.
SJVN also delivered multibagger returns, as it has rallied over 110% in the last six months. The stock also surged 160% in the past two years and gained 200% in three years.
As per Trendlyne data, the average target price of the stock is Rs 55, a downside of 22% from the current market prices.
The consensus recommendation from 4 analysts for the stock is a 'Buy'.
Technically, the stock's day RSI (14) is at 65.3. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed.
