Rs 34 to Rs 96: This power stock delivered multibagger returns in 2023; hit record high today

Shares of SJVN Ltd zoomed to their all-time high amid a rally in the broader market today. SJVN stock rose 4.24% to a high of Rs 96.45 on BSE. Market cap of the firm rose to Rs 37,293 crore. A total of 21.67 lakh shares changed hands amounting to a turnover of Rs 20.56 crore on BSE. SJVN shares have a beta of 0.1, indicating very low volatility in a year. The multibagger stock hit a 52 week low of Rs 30.39 on March 27, 2023. In terms of technicals, the relative strength index (RSI) of the stock stands at 73.3, signaling it's trading in the overbought zone. SJVN shares are trading higher than the 5 day, 20 day, 50 day, 100 day and 200 day moving averages.     

The multibagger stock has gained 147% in six months and risen 171% this year.

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Mileen Vasudeo, Senior Technical Analyst at Arihant Capital Markets assigned a hold call with a target price of Rs 102-109. 

"On the daily chart of SJVN, we are observing a higher high formation, which is a sign of strength. Further, momentum indicator viz. MACD is positively poised, and the stock even outperforms the benchmark indices. Combining the above parameters, it is evident that momentum on the upside is likely to continue. Hence, one can hold the stock at current levels with a stop loss of Rs 81 for the target of Rs 102-109 levels in the next couple of weeks," said Vasudeo.  

Brokerage Monarch Networth Capital has initiated coverage on SJVN with a 'buy' call. It said the stock has the capacity to yield strong returns of two to three times over a three- to five-year period. The brokerage has set the target price for SJVN at Rs 125.

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“The company is fairly unique in terms of its proven ability to operate efficiently and deliver far more value than its peers despite being much smaller in absolute size. Our earnings estimate and target price for FY26 are higher than the consensus," the brokerage said in its report.

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.

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

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