SJVN shares zoom over 9%, hit 52-week high on signing MoU with PFC to fund projects worth Rs 1.19 lakh crore
SJVN shares zoomed over 9% to hit a new 52-week high of Rs 83.7 in Wednesday's trade on BSE after the firm signed a Memorandum of Understanding (MoU) with Power Finance Corporation (PFC) for financial assistance for projects.
«PFC and the Company have signed a Memorandum of Understanding (MOU) for financial assistance to various diversified portfolio of projects including majorly Renewable Energy projects and thermal generation project to be set up at total project cost of about Rs 1,18,826 crore,» the company said in an exchange filing.
As per the MoU, the term loan financial assistance is proposed tentatively at 70% of the project cost, which may be increased for renewable energy projects as per project requirements.
At 12.27 p.m., the scrip was trading 8.7% higher at Rs 83.2 on BSE. SJVN also delivered multibagger returns, as it has rallied over 170% in the last six months.
The stock also surged 205% in the past two years and gained over 250% in three years.
Meanwhile, shares of PFC were trading 1% higher at Rs 290.5 on the BSE. PFC also delivered multibagger returns of over 150% in the past one year and gained over 200% in the last three years.
Earlier in September, the company's subsidiary SJVN Green Energy (SGEL) signed a power purchase agreement with the Bhakra Beas Management Board (BBMB) to develop an 18 MW solar power project.
As per Trendlyne data, the average target price of SJVN is Rs 55, which shows a downside of 34% 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 68.7. The RSI below 30 is considered oversold, and above 70 is overbought, Trendlyne data showed.
