SJVN shares rise after bagging wind project; multibagger stock up 109% in six months. Analyst views

Shares of SJVN Ltd traded higher on Friday after the government-owned hydroelectric power generation and transmission company signed a Power Purchase Agreement (PPA) with Solar Energy Corporation of India (SECI) for a 200-MW grid connected wind power project. The estimated cost of the project is Rs 1,400 crore, SJVN stated.

The project is expected to generate 482 million units in the first year after commissioning and the projected cumulative energy generation over a period of 25 years is 12,050 million units, it added.

SJVN Green Energy, a wholly-owned subsidiary of the company, had participated in the tariff-based competitive bidding process conducted by SECI for selection of wind power developers for setting up 1,200 MW grid connected wind power projects in India. It said it bagged 200 MW at a tariff of Rs 3.24 per unit.

SJVN's stock on Friday settled 1.22 per cent higher at Rs 76.09. At this price, the scrip has gained 109.44 in the past six months. Support on the counter could be seen around Rs 70 level. 

Osho Krishan, Senior Research Analyst - Technical & Derivatives at Angel One, said, "SJVN is primarily in an uptrend, hovering above all its significant EMAs (Exponential Moving Averages) on daily charts. Rs 73 is likely to be seen as immediate support, followed by Rs 70, Rs 68 levels. While on the higher end, Rs 80-82 is expected to provide intermediate resistance in the near period."

Jigar S Patel, Senior Manager - Technical Research Analyst at Anand Rathi Shares and Stock Brokers, said, "At the current juncture, SJVN is trading in a tight range of Rs 73-79. Unless it doesn't break on either side, one needs to wait and watch. If it does, then resistance is expected near the Rs 83–84 zone and support is expected near Rs 68–69 levels."

AR Ramachandran from Tips2trades said, "SJVN is sideways to bearish on daily charts with strong resistance at Rs 78.5. A daily close below support of 72.55 could lead to a target of Rs 64 in the near term."

As of September 2023, promoters held 81.85 per cent stake in the company.

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

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