Navratna PSU, SJVN Ltd Stock rises by 12% Potential Gains, 18% dividend YTD

Brokerage firm SMC Global Securities has selected SJVN, a Navratna PSU power stock, as its top investment recommendation for the trading week from November 4th to 8th.

The broker has set a target price of Rs 129 for SJVN, representing a potential gain of over 12%. SJVN is recognized as one of the leading dividend-paying PSU energy stocks. In the past 12 months, the company has delivered a dividend of Rs 1.8 per share, equating to an 18% return.

Currently, the CPSE stock is at Rs 115 apiece. The stock gained by over 1.5% on Muhurat Trading. Its market cap is around Rs 45,192.64 crore. The stock's 52-week high and low are Rs 170.45 apiece and Rs 71.44 apiece, respectively. Its price-to-equity ratio is 46.81x, and its return on equity is 6.88%.

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The company recently inked MoUs with the government of Maharashtra for the development of Pumped Storage Projects (PSPs) and Floating Solar Projects (FSPs) in the state of Maharashtra.

The first MoU was inked, for the development of five Pumped Storage Projects of total capacity of 8100 MW, and the second MoU was signed for the development of a 505 MW Floating Solar Project at Lower Wardha Dam in Maharashtra. The total estimated investment on these projects will be to the tune of Rs.48,000 crores.

The large-cap company in the power generation and distribution industry has recently seen a decline in its stock price. On November 4th, 2024, the company's stock lost -3.52%, underperforming the sector by -1.55%. This has led to a 'Strong Sell' call by MarketsMOJO.

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