SJVN Share Price Jumps Following Renewable Energy MoU With Rajasthan Government

SJVN Ltd.'s share price rose nearly 6% in early trade on Thursday, after the company announced a significant partnership with the Rajasthan government's energy department after market hours on Thursday.

The agreement, formalised through a Memorandum of Understanding, focuses on the development of renewable energy projects in the state.

The deal, signed in the presence of Rajasthan Chief Minister Bhajan Lal Sharma, outlines plans for SJVN to lead the development of two major renewable energy projects: 5 gigawatts (GW) of pumped storage and 2 GW of floating solar capacity. The agreement marks a long-term collaboration between SJVN and the state government to harness Rajasthan's renewable energy potential.

SJVN, a public sector undertaking primarily involved in power generation, will bring its expertise in large-scale energy projects to the state. The company’s involvement in both pumped storage and floating solar projects is expected to contribute significantly to Rajasthan’s renewable energy targets while addressing the growing demand for sustainable power.

The company offers three main products and services: electricity generation (including hydro, wind, and solar), consultancy, and transmission. Its operations span across thermal power, hydro power, wind power, solar power, power transmission, consultancy, and power trading.

Shares of SJVN rose as much as 6.63% to Rs 110.30 apiece. They pared gains to trade 4.60% higher at Rs 108.20 apiece as of 09:58 a.m., compared to a 0.65% advance in the NSE Nifty 50.

The stock has risen 33.50% in the last 12 months. Total traded volume so far in the day stood at 9.2 times its 30-day average. The relative strength index was at 44.2.

Out of five analysts tracking the company, three maintain a 'buy' rating, one recommends a 'hold' and one suggests 'sell', according to Bloomberg data. The average 12-month analysts' consensus price target implies an upside of 0.2%.