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Fundamentals for SJVN Limited
Business Operations:
Sector: UtilitiesIndustry: Utilities - Renewable
SJVN Limited, together with its subsidiaries, engages in the generation and sale of electricity in India and internationally. The company is also involved in thermal power, hydro power, wind power, solar power, and power transmission businesses. The company operates the Nathpa Jhakri Hydro Power Station (NJHPS) with a capacity of 1500 MW located in Shimla District; the Rampur Hydro Power Station with an installed capacity of 412 MW in Shimla and Kullu District in Himachal Pradesh; and the Naitwar Mori Hydro Power Station with a capacity of 60 MW located in Uttarkashi district in Uttarakhand. It also operates the Khirvire Wind Power Project with a capacity of 47.6 MW in Ahmednagar District in Maharashtra; and the Sadla Wind Power Project with an installed capacity of 50 MW in Surendranagar District in Gujarat. In addition, the company operates the Charanka Solar Power Plant with a capacity of 5.6 MW in Patan district in Gujarat; 1 MW solar power plant at Wadhal and 310 KW solar power plant at Surge Shaft of NJHPS; Parasan Solar Power Station with a capacity of 75 MW in Jalaun District, Uttar Pradesh; and an 86 km cross border transmission line with a capacity of 400 kV from Muzaffarpur to Sursand. Additionally, it provides consultancy services in the field of hydroelectric projects, highway tunnels, railway tunnels, etc., as well as undertakes contracts, project management services, and power trading. The company was formerly known as Satluj Jal Vidyut Nigam Limited and changed its name to SJVN Limited in September 2009. SJVN Limited was incorporated in 1988 and is based in Shimla, India.
Revenue projections:
SJVN is projected to see lower revenues than in the previous year, a trend that usually concerns investors. Declining revenues often harm a company's profitability, leading investors to exercise caution as they weigh the potential risks of continued financial downturns.
Financial Ratios:
| currentRatio | 0.646000 |
|---|---|
| forwardPE | 15.281267 |
| debtToEquity | 202.556000 |
| earningsGrowth | -0.304000 |
| revenueGrowth | 0.006000 |
| grossMargins | 0.948430 |
| operatingMargins | 0.667410 |
| trailingEps | 1.450000 |
| forwardEps | 4.637050 |
SJVN Limited's current ratio being 0.646 suggests that the company's current assets and cash reserves may not be enough to meet its short-term debt obligations. This points to possible liquidity challenges, signaling the need for additional funding.
SJVN's Forward PE ratio suggests that the stock is priced appropriately in relation to its earnings. Not being overpriced, it offers room for growth, signaling potential upside for investors looking for a stock with reasonable valuation and growth potential.
SJVN's high debt-to-equity ratio indicates a strong reliance on debt, meaning the company is heavily leveraged. This could increase financial risks if cash flow or earnings decline, making it more difficult for SJVN to manage its debt obligations.
SJVN's low earnings and revenue growth suggest shrinking profits are likely. This could reflect broader financial struggles, signaling that the company might face difficulties in sustaining its profitability.
With positive gross and operating margins, SJVN's profitability is evident. These metrics suggest the company is efficiently managing its expenses while maintaining strong revenue, highlighting a solid financial foundation.
SJVN Limited's forward EPS is higher than its trailing EPS, which signals that the company is expected to achieve greater profitability this financial year. This suggests improved earnings performance, indicating a positive outlook for SJVN Limited's financial growth.
Price projections:
The price of SJVN has remained consistently close to the lower limit of projections. This ongoing pattern raises concerns about the stock's performance and may reflect market hesitance regarding the company's growth prospects.
Recommendation changes over time:
Analysts' sell bias for SJVN Limited suggests caution, but investors should base their decisions on a wide range of market indicators. This ensures a more comprehensive view of SJVN Limited's market potential and provides a better framework for making balanced investment decisions.
DISCLAIMER: We provide information and our musings based on events, but nothing on this site can be considered professional advice of any kind.
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