SJVN shares crash 25% in just two trading sessions; here's why

Shares of SJVN Ltd extended their sharp fall for the second straight session in Monday's trade. The stock today cracked 20 per cent to hit a day low of Rs 112.50. At this price, it has slumped 25.32 per cent in two trading sessions. Even so, the multibagger counter has gained 249.92 per cent in the past one year.

Geeta Kapur, chairperson and managing director at SJVN, said, "Profit after tax (PAT) decreased by Rs 155.64 crore compared to third-quarter over the last year mainly due to lesser generation and slight decrease in capacity incentives. However, net worth has increased marginally by Rs 163 crore."

During the quarter under review, revenue from operations slipped 2.7 per cent over the same period last year because of lesser generation from the hydro projects, she added.

"Our main two hydro projects generation (NGPH and RHP) dropped by 13.36 per cent and 12.79 per cent, respectively, as compared to the same period last year. This was mainly due to low precipitation in the catchment areas and subsequently low discharge in river Sutlej," Kapur further mentioned.

On technical setup, support on the counter could be seen at Rs 112. Resistance may be found at Rs 120, followed by Rs 140 level.

"SJVN stock price looks bearish on daily charts with strong resistance at Rs 140. A daily close below support of Rs 112 could lead to Rs 93 in the near term," said AR Ramachandran from Tips2trades.

"The stock looked weak on daily charts after Q3 results and may slip towards Rs 99 level. Resistance will be at Rs 120," said DRS Finvest founder Ravi Singh.

SJVN is engaged in the business of generation of electricity and the tariff for power generation. The company manufactures and provides three key products and services: generation of electricity (hydro, wind and solar), consultancy and transmission. Its businesses include thermal power, hydro power, wind power, solar power, power transmission, consultancy and power trading.

(Disclaimer: Business Today provides stock market news for informational purposes only and that should not be construed as investment advice. Readers are encouraged to consult a qualified financial advisor before making any investment decisions.)

Also read: Hot stocks for this week: Goodyear, Cochin Shipyard, IRCON, Engineers India and more

Also read: Stock recommendations by analyst for February 12, 2024: Adani Ports, ACC and Dr Reddy's

Also read: EaseMyTrip to set up 5-star hotel in Ayodhya; stock slips 1%