Mehabe score: 6 G Factor: 4 Piotski Score: 8 The stock has a rating . The mehabe team score is reflective of its fundamental and technical merits. A rating above 8 is considered good buy. The stock has a G-Factor of 4 and Piotski score of 8.
Description
SJVN is engaged in the business of Electricity generation. The company is also engaged in the business of providing consultancy for hydro-power projects.#
Main Points
Electricity Plants
Presently, the company has 5 operation electricity projects across India with a total capacity of ~2015 MW.
Nathpa Jhakri Hydro Power – 1500 MW – Himachal PradeshSite:SJVN
Market Cap:
Rs 11,279 cr
Price:
28.7
Trading pe:
6.04x
Book-value:
31.6/share
Div yield:
7.67 %
Earning yield:
19.97%
Face-value:
10.0/share
52week high:
30.80
52week low:
20.40
Technical Analysis
Stock trades at 28.7, above its 50dma 27.49. It also trades above its 200dma 25.6. The stock remains bullish on techicals
The 52 week high is at 30.80 and the 52week low is at 20.40
Price Chart
P/E Chart
Sales and Margin
Strengths
– Stock is trading at 0.91 times its book value
– has been maintaining a healthy dividend payout of 78.72%
Weakness
– The company has delivered a poor sales growth of -0.86% over past five years.
– has a low return on equity of 12.78% for last 3 years.
-Earnings include an other income of Rs.823.73 Cr.
-Debtor days have increased from 62.09 to 100.76 days.
Competition
– The industry trades at a mean P/E of 25.7x. Adani Green trades at the industry’s max P/E of 869.33x. SJVN trades at a P/E of 6.04x
– Industry’s mean G-Factor is 3.5 while the mean Piotski score is 9.0. SJVN has a G-Factor of 4 and Piotski scoreof 8.
– Average 1 month return for industry is 3.2%. The max 1- month return was given by Adani Power: a return of 22.7 %
Quarterly Results
Sales for period ended Mar 2021 is Rs 464.0 cr compared to Rs 544.0 cr for period ended Mar 2020, a fall of 14.7%
Operating Profits reported at Rs 241.0 cr for period ended Mar 2021 vis-vis 348.0 for period ended Mar 2020 .
Operating Margins contracted -1203.1 bps for period ended Mar 2021 vis-vis Mar 2020 .
The EPS for Mar 2021 was Rs 1.58 compared to Rs 0.5 for previous quarter ended Dec 2020 and Rs 1.01 for Mar 2020
Profit & Loss Statement
Profit&Loss Comments
Company reported sales of Rs 2485.0 cr for period ended TTM vis-vis sales of Rs 2697.0 cr for the period ended Mar 2020, a fall of 8.5%. The 3 year sales cagr stood at 3.7%.
Operating margins shrank to 70.0% for period ended TTM vis-vis 78.0% for period ended Mar 2020, contraction of 800.0 bps.
Net Profit reported at Rs 1642.0 cr for period ended TTM vis-vis sales of Rs 1656.0 cr for the period ended Mar 2020, falling 0.9%.
Company recorded a healthy Net Profit CAGR of 10.3% over the last 3 years
Balance Sheet Statement
Cash Flow Statement
Cash Flow comments
CashFlow from operating activities was positive.
CashFlow from operating activities: Rs 1714.0 cr for period ended Mar 2020 vis-vis Rs 1018.0 cr for period ended Mar 2019
Sales Growth
Profit Growth Statement
Profit Growth Statement
Stock Price CAGR
Return of Equity
General Comments
– The company has had stable/constant Return on Equity (RoE) metric. The RoE on Last Year basis was 14.0% compared to 13.0% over the last 3 Years. – The stock has given a return of 29% on a 1 Year basis vis-vis a return of -1% over the last 3 Years. – The compounded sales growth on a TTM bassis is -8% vis-vis a compounded sales growth of 0% over the last 3 Years. – The compounded profit growth on a TTM basis is 13% vis-vis a compounded profit growth of 2% over the last 3 Years.
Ratios
Shareholding Pattern
– FII shareholding has remained largely constant. The Mar 2021 fii holding stood at 2.33% vis-vis 2.53% for Dec 2020 – Public shareholding has remained largely constant. The Mar 2021 public holding stood at 5.49% vis-vis 5.0% for Dec 2020
Conclusion
– Stock is trading at 0.91 times its book value
– has been maintaining a healthy dividend payout of 78.72% – The company has delivered a poor sales growth of -0.86% over past five years.
– has a low return on equity of 12.78% for last 3 years.
-Earnings include an other income of Rs.823.73 Cr.
-Debtor days have increased from 62.09 to 100.76 days.
