Multibagger power stock rises 6% on Rs 48,000-crore MoUs with Maharashtra govt

Shares of SJVN Ltd zoomed 6% today after the power generation firm said it inked two memorandum of understandings with the Government of Maharashtra  for development of Pumped Storage Projects (PSPs) and Floating Solar Projects (FSPs) in the state. The total estimated investment on these projects will Rs 48,000 crore and will generate approx. 8400 direct and indirect employment opportunities. 

The multibagger stock rose 5.71% to Rs 133.20 in the current session on BSE. Market cap of the firm stood at Rs 52,266 crore. A total of 21.35 lakh shares changed hands amounting to a turnover of Rs 27.89 crore on BSE.

SJVN shares have a beta of 1.7, indicating very high volatility in a year. The stock fell to a 52 week low of Rs 63.38 on October 26, 2023 and climbed to 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 36.2, signaling it's trading neither in the overbought nor in the oversold zone. SJVN shares are trading higher than the 5 day, 10 day, 20 day, 30 day, 150 day, 200 day but lower than the 50 day and 100 day moving averages.   

The multibagger stock has gained 319% in two years and risen 90% in a year.

In five years, the stock has risen 441%.

The first MoU was inked between SJVN and Department of Water Resources, Government of Maharashtra, for development of five Pumped Storage Projects of total capacity of 8100 MW.  The second MoU was signed between SJVN and Maharashtra State Power Generation Company (MAHAGENCO) for the development of 505 MW Floating Solar Project at Lower Wardha Dam in Maharashtra.

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.