SJVN shares saw a modest increase today, rising 0.08% to ₹130.4 at 11:17 AM, September 23, 2024. Despite the small uptick, the broader market also showed strength, with the Sensex trading at ₹84,730.81, up by 0.22%. SJVN traded within a narrow range during the day, reaching a high of ₹131.4 and a low of ₹129.8, reflecting cautious investor sentiment.
On the technical front, SJVN’s stock is currently exhibiting mixed signals. It is trading above the 5, 10, and 300-day Simple Moving Averages (SMA), but still below the 20, 50, and 100-day SMAs, indicating potential resistance ahead.
The 5-day SMA stands at ₹129.84, the 10-day at ₹130.29, while the longer-term averages, such as the 20-day, 50-day, and 100-day SMAs, are at ₹132.02, ₹138.96, and ₹136.74, respectively.
The stock may face resistance as it approaches these levels, but it will likely find support at the shorter SMAs. SJVN’s long-term 300-day SMA is at ₹124.68, offering stronger support should the stock experience any downside pressure.
Volume is another key factor in analyzing SJVN’s performance today. As of 11 AM, the volume traded on both NSE and BSE was down by 96.22% compared to the previous session.
Volume is often a crucial indicator when determining whether price movements are sustainable or not. Lower volume with minor price increases suggests that the momentum may not be strong enough to sustain a rally. On the flip side, if the price were to fall on higher volume, it might signal that further declines are imminent.
Looking at the stock’s broader trend, SJVN has been experiencing a continued downtrend. Despite today’s small gain, Mint’s technical analysis suggests that the stock remains in a bearish phase.
The classic pivot level analysis shows key resistance levels at ₹131.34, ₹132.26, and ₹134.01. Conversely, it has significant support at ₹128.67, ₹126.92, and ₹126.00. These levels could prove important in determining the stock’s next move, with any breach of support potentially accelerating its downward trajectory.
From a fundamental perspective, SJVN has a Return on Equity (ROE) of 6.53%, a modest figure that reflects the company’s efficiency in generating profits from its equity base. Meanwhile, its current Price-to-Earnings (P/E) ratio stands at 52.57, indicating that the stock may be overvalued in comparison to its earnings.
The high P/E ratio could be a red flag for potential investors looking for value, though it might also indicate that the market is pricing in future growth expectations.
One positive factor is the company’s strong promoter holding. As of the June quarter, SJVN’s promoters held an impressive 81.85% of the company’s shares, reflecting their confidence in its long-term prospects.
Mutual funds and Foreign Institutional Investors have also shown interest, albeit to a smaller degree. MF holdings increased from 1.81% in March to 2.37% in June, while FII holdings rose slightly from 2.36% to 2.40% over the same period. This gradual increase in institutional holdings could signal growing confidence in the stock, even amid its recent downtrend.
Despite the stock’s minor rise today, SJVN’s performance compared to its peers paints a mixed picture. Some of its competitors, such as NHPC and Torrent Power, have seen declines today, while others like NLC India and CESC are posting gains.
This mixed sector performance indicates that while SJVN is holding steady, the overall power and utility sector is experiencing varied market reactions.
Analysts expect a median one-year forecasted upside of 25.31%, with a target price of ₹97.40. While this target reflects expectations for a decline from current levels, it also suggests that investors may need to be cautious and keep a close watch on broader market trends and company-specific developments. SJVN’s long-term outlook will likely depend on external factors such as government policy, demand for power, and the company’s operational efficiency.
