Shares of SJVN Ltd zoomed nearly 5% today after the company announced that it has secured an order worth Rs 1,100 crore for a solar power project in Gujarat. The company received a Letter of Intent (LOI) from Gujarat Urja Vikas Nigam (GUVNL) for a 200 MW solar power project in GUVNL Phase XXII.
The stock surged 4.8% to Rs 130.80 in the current session on the Bombay Stock Exchange (BSE). SJVN Ltd’s market capitalization stood at an impressive Rs 49,652 crore, with a total of 26.09 lakh shares changing hands, amounting to a turnover of Rs 33.22 crore on the BSE.
SJVN shares have a beta of 1.1, indicating high volatility over the past year. The stock hit a 52-week low of Rs 30.39 on March 27, 2023, and a 52-week high of Rs 170.45 on February 5, 2024.
Technically, the relative strength index (RSI) of the stock stands at 54.1, signaling that it is trading neither in the overbought nor the oversold zone. SJVN shares are currently trading higher than the 5-day, 20-day, 30-day, 50-day, 100-day, and 200-day moving averages. The multibagger stock has gained an impressive 65% in six months and a remarkable 308% in a year.
The ground-mounted solar project will be developed by the company’s subsidiary, SJVN Green Energy Ltd (SGEL), through an EPC contract. The project is expected to be commissioned within 18 months from the date of the power purchase agreement. The project will be developed at the Gujarat State Electricity Corporation Limited (GSECL) Solar Park in Khavda. A Power Purchase Agreement (PPA) will be executed with GUVNL after the tariff is adopted by GERC.
The 25-year PPA will be signed between GUVNL and SGEL. The project is expected to generate 508.4 million units in the first year after commissioning, with a projected cumulative energy generation of 11,836.28 million units over 25 years. The commissioning of this project is expected to reduce carbon emissions by 5,79,976 tonnes and contribute to the government’s mission of reducing carbon emissions.
As of 11:18 am, SJVN Ltd’s shares were trading 1.69% higher at ₹126.70, reflecting the market’s optimism about the company’s expanding renewable energy portfolio.
