SJVN Analysis (CMP 22)

SJVN - PAST TO PRESENT
The SJVN Ltd (formerly Nathpa Jhakri Power Corporation Limited - NJPC ) was incorporated on May 24, 1988 as a joint venture of the Government of India ( GOI ) and the Government of Himachal Pradesh (GOHP) to plan, investigate, organize, execute, operate and maintain Hydro-electric power projects. The present authorized share capital of SJVN is Rs 7000 crores.The Nathpa Jhakri Hydro – Electric Power Station– NJHPS ( 1500 MW ) was the first project undertaken by SJVN for execution.
	2006	2007	%	2008	%	2009	%	2010	%	REMARKS
EQUITY	4108	4108		4108		4108		4108		Post IPO equity is app 4300
SALES	1062	1409	33	1356	-4	1760	30	1769	1	Consistently increasing sales
PROFIT	585	649	11	764	18	1015	33	972	-4	Consistent growth in profits
DIV	4	5.7		5.94		7.8		7.95		Dividend yield at presnt market price is around 2.6%
EPS	1.42	1.58	11	1.74	10	2.46	41	2.35	-4
BOOK VAL	11.88	12.8	8	13.85	8	14.72	6	16.15	10	Consistently increasing book values
OBSERVATIONS AND CONCLUSIONS
It has a fairly good ROIC at greater than 15%. In another 02 years we will see capacity additions.
Its available at a market cap of 9000 crores against say Torrent power  at 12000 power or GVK at app 7000 crores.
Company was listed last year . Gave a dividend of 55 paise.
Half yearly EPS is 1.48 . With the monsoons being good we can expect it to touch 2.50 by year end