Shares of SJVN have delivered multibagger returns in the last two years. The stock of the power generation firm has clocked 400% returns in two years and risen 430% in three years. However, the rally seems to have slowed down with the stock losing 5.58% in a month. The stock closed at Rs 28.55 on August 16, 2022. In the current session, SJVN stock was trading 0.60% higher at Rs 143.05 against the previous close of Rs 142.20. Market cap of the firm stood at Rs 56,156 crore. It reached an intraday high of Rs 144.75 on Friday.
Total income climbed 29% to Rs 958.47 crore during the last quarter from Rs 744.39 crore in the year-ago period.
SJVN shares have a beta of 1.8, indicating high volatility in a year. The stock hit a 52 week low of Rs 55 on August 21, 2023 and a 52 week high of Rs 170.45 on February 5, 2024.
In terms of technicals, the relative strength index (RSI) of the stock stands at 50.4, signaling it's trading neither in the overbought nor in the oversold zone. SJVN shares are trading higher than the 5 day, 50 day, 100 day, 200 day but lower than the 20 day and 30 day moving averages. The multibagger stock has gained 147 % in a year.
In Q1 of this fiscal, SJVN reported a 31% rise in net profit to Rs 357 crore against Rs 271.75 crore profit in the June 2023 quarter. Expenses surged to Rs 476.39 crore in Q1 against Rs 362.60 crore in the first quarter of the last fiscal.
Analysts have mixed views on the prospects of the stock.
Hardik Matalia, Derivative Analyst at Choice Broking said, “SJVN is currently trading around the Rs 141 level and seems to be in a consolidation phase. The stock is forming a series of higher lows and higher highs, indicating a positive momentum. A breakout above the Rs 150 level could serve as a strong buy signal, suggesting further upward momentum towards the upside target of Rs 170 levels.
The Relative Strength Index (RSI) is hovering around 50, trending upward, signaling increased buying momentum. Additionally, SJVN is trying to sustain above its key moving averages, including the short-term (20-day) EMA, medium-term (50-day) EMA, and long-term (200-day) EMA, confirming the strength of the current uptrend.
Considering the support level at Rs 130 and resistance at Rs 160, SJVN Ltd. is approaching its recent highs with a favorable technical outlook. The combination of rising prices, strong support from the EMAs, and a balanced RSI suggests that the stock could continue to perform well in the near term, making it an attractive option for investors seeking growth opportunities.”
Kushal Gandhi, Technical Analyst, StoxBox said, "Despite the stock's current lateral trading, both the daily and higher timeframe Relative Strength Index (RSI) have exhibited a negative slope, signifying a decline in price momentum. Rs 160-153 range has proven to be a strong resistance zone, leading to pronounced rejections and subsequent depreciation in the price. Consequently, it is advisable to abstain from purchasing the stock at the prevailing market price, opting instead to await additional bullish confirmation before considering a new position."
Jigar S Patel, manager at Anand Rathi said,"Support will be at Rs 140 and resistance at Rs 148. A decisive close above the Rs 148 level may trigger a further upside to Rs 155. The expected trading range will be between Rs 138 and Rs 155 in the short-term."
Aditya Agarwal, Head Derivatives & Technical, Sanctum Wealth said, "SJVN is consolidating in a broad range of Rs 158-128 since January 2024. We expect that stock will continue to trade in this band for next few weeks before giving a fresh move. Short-term traders can avoid initiating fresh positions in the stock whereas long term investors can use dips towards Rs 132-128 to add fresh long positions for upside target of Rs 155. Above that, the stock can move towards Rs 175 levels. However, a close below Rs 115 will negate positive view on the stock and below that SJVN could correct towards Rs 97 levels."
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.