Best Stocks Below Rs.50 – SJVN Ltd

Our 7th company in the Series of Best Stocks Below Rs. 50 is SJVN Ltd.

This company is good for investing purpose or not ?

Let’s start with the Company profile

Company Profile :

SJVN Limited is primarily engaged in the business of generation and sale of power. The Company operates through Thermal Power segment.

Now Let’s check the important fundamental figures of this company. This is a small cap company with Market Cap ₹11,042cr. We can check more fundamental details below in depth:

Company Fundamental Detail :

PE Ratio: 6.71

Sector PE Ratio: 25.37

PE Ratio of this company is low but better than Sector’s PE. So it’s a  Average PE than the peers of this company.

PB Ratio : 0.86

Sector PB Ratio : 0.86

PB Ratio of this company is low than Sector’s PB ratio. So it’s Average PB than the peers of this company.

Dividend Yield : 7.83%

Sector Dividend Yield : 1.51%

Dividend Yield of this company is high than Sector. Dividend of this company is Good than the peers of this company.

ROE: 13.2%

ROCE: 9.0%

ROE (Return on equity) and ROCE (Return on capital equity) is Below Average

According to above data, this company is looking fundamentally average. Now We’ll check the company Financially data:

Company Financial Detail

YearRevenue(cr.)Profit(cr.)
20213,647.571,645.61
20203,309.571,566.76
20193,107.131,362.58
20182,643.021,224.61
20173,123.931,541.18

We should check now liabilities of company also in the below table

Total Current & Non Current Liabilities

2021 2020 2019 2018
4,682.043,904.033,727.453,690.35

Liabilities of a company refers to the debt of that company. We should also aware the debt of company. In 2021, Company have 4,682.04 Cr. debt.

Let’s check the Free Cash flow of the company

Free Cash flow

2021 2020 2019 2018
-83.07444.86244.051,291.91

Debt Level: SJVN’s debt to equity ratio (15.1%) is considered satisfactory.

Reducing Debt: SJVN’s debt to equity ratio has reduced from 22.8% to 15.1% over the past 5 years.

Debt Coverage: SJVN’s debt is well covered by operating cash flow (102.9%).

Interest Coverage: SJVN’s interest payments on its debt are well covered by EBIT (177.6x coverage).

Share Holding Pattern

Promotor HoldingForeign Institution
Mutual Fund
Other Domestic InstitutionsRetail & Others
Jun 202186.77%2.40%3.86%1.41%5.56%
Mar 202186.77%2.33%3.88%1.45%5.58%
Dec 202086.77%2.53%4.14%1.47%5.09%
Sep 202086.77%2.79%4.41%1.46%4.57%

Above table showing there is no big change in Promotors holding which is 86.77% in June 2021. FIIs invested in June 2021 with 2.40% and retail investor is 5.56%.

Now We’ll check the return of the company, This company started from Rs. 24.35 at 26 May 2010. This company given 29.20% returns in last 1 year from 2020 to 5 Oct 2021.

Investment Checklist for SJVN Ltd.

  • The company is currently profitable
  • Earnings have grown by 3.1% per year over past 5 years
  • Debt level is low and not considered a risk
  • Share price has been stable over the past 3 months
  • The company’s earnings are high quality
  • Profit margins improved or SJVN became profitable
  • At least 3 years of financial data is available
  • No concerning events detected
  • Shareholders have not been meaningfully diluted in the past year or recently listed
  • Revenue is meaningful (₹25B)
  • Market cap is meaningful (₹110B)
  • SJVN does not have negative shareholders equity.
  • Unstable dividend track record

According to its historical performance we can predict stock target.

Entry Buying Zone : Premium members can see only

Target: Premium members can see only

Time Horizon:Premium members can see only

Risk Profile: Premium members can see only

Hope you liked Our 7th company in the Series of Best Stocks Below Rs. 50. We tried to cover many important things about this company, if you think anything left to cover, you can comment us and we’ll try to cover those things also.

Disclaimer: This is an Educational Initiative and is NOT registered under any SEBI regulations. All the information that we provide is just for Educational purposes and you should consult your financial adviser before taking any investment decision. Also we do NOT provide any form of Stock Tips or Advise on stocks or portfolios. My All Trades Only Education Purpose. All trades will be at your risk. You have the responsibility of any trade or any benefit or loss

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