SJVN shares rise 5%, hit record high in early deals; here’s why

Shares of SJVN Ltd rose 5% to a record high in early deals today after the power producer said its arm SJVN Green Energy has secured a Letter of Awards from Assam Power Development Corporation (APDCL) for three solar power projects with a cumulative capacity of 320 MW. The stock hit a record high of Rs 63.80, rising 4.95% today against the previous close of Rs 60.80 on BSE. Market cap of the firm rose to Rs 24,875 crore.  A total of 19.21 lakh shares changed hands amounting to a turnover of Rs 12.10 crore on BSE.      

Th stock hit a 52 week low of Rs 28.20 on August 29, 2022.  

In terms of technicals, the relative strength index (RSI) of the stock stands at 65.3, signaling it's trading neither in the overbought nor in the oversold zone. SJVN shares have a beta of 0.9, indicating low volatility in a year. SJVN shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.      

The projects were won through competitive bidding tenders conducted by APDCL. These three solar power projects shall be developed on a Build Own and Operate basis.  

The solar projects are expected to generate cumulative 628 million units in the 1st year and the cumulative energy generation over a period of 25 years would be about 14591 million units. The Projects shall be commissioned in 18 Months from the date of signing of PPA and expected to be commissioned by March 2025. The PPA shall be signed between APDCL and SGEL for 25 years. The tentative cost of construction / development of these 320 MW projects is around Rs 1900 Crores. 

The commissioning of these Projects is expected to reduce 7.14 lakh tonnes of carbon emission and would contribute in government’s mission of reduction in carbon emission. 

SJVN Limited 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. 

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