Navratna stock jumps 7% after signing MoU with Govt. of Rajasthan for renewable energy projects – EQ
In Short : Shares of Navratna companies surged by 7% following the announcement of a Memorandum of Understanding (MoU) between the company and the Government of Rajasthan to collaborate on renewable energy projects. This partnership aims to boost Rajasthan’s clean energy infrastructure, with a focus on solar and wind energy, aligning with India’s push toward sustainable energy solutions.
In Detail : Navratna PSU engaged in the business of generation, transmission, and consultancy of renewable energy sources jumped upto 7 percent in the day’s trade upon signing MoU to develop renewable energy projects in Rajasthan.
Price Action (WA:ACT)
With a market capitalization of Rs. 42,226 Crores, the shares of SJVN Limited (NS:SJVN) were trading at Rs. 107.45 per equity share, up 3.82 percent from the previous day’s close price of Rs. 103.50.
What Happened
SJVN Limited has a signed a Memorandum of Understanding (MoU) with Energy Department, Government of Rajasthan to spearhead the development of renewable energy in the state.
The MoU involves SJVN Limited developing 5 GW Pumped Storage Projects and 2 GW Floating Solar Projects in the state and both the parties have agreed to collaborate for development of renewable energy on long term basis.
About the Company
SJVN Limited is engaged in the business of generation, transmission, and consultancy of renewable energy sources like hydro energy, wind energy, and solar energy.
SJVN has expanded and diversified in Hydro, Thermal, Solar, and wind Energy, Power Transmission, and Power Trading. Currently, the project portfolio of the Company is more than 56,000 MW, with a presence in Pan India and Nepal. It is marching towards achieving its Shared Vision of generating 50,000 MW by 2040.
Financials and Ratios
Its revenue from operations grew by 16.84 percent from Rs. 878 Crores in Q2FY24 to Rs. 1,026 Crores in Q2FY25, accompanied by profits of Rs. 440 Crores in both years.
In terms of Return ratios, it has reported a return on equity (ROE) of 32 percent, and a return on capital employed (ROCE) of 14.5 percent. It has reported a debt-to-equity ratio of 1.63.
