Thread by @SkCapitalist

A relative of mine came to me to look for best #FixedDeposit option available today, and that got me thinking that there should be a #Stock which can fulfill this purpose, and voila i got 1 #SJVN, so here is a thread, why at current levels it is a FD.
@VPaldiwal

#SJVN is the principal business activity #Electricity #generation of the company. The company is also engaged in the business of providing consultancy. Both of these segments are not affected due to #COVID19

SJVN Ltd. been honored with the CBIP Award-2020 of Best Performing #Hydro #Power Company. Company has 5 working projects. 2 #Hydro, 2 #Wind and 1 #Solar. Capacities & Locations are mentioned below:

Apart from this company is working on multiple upcoming projects as below:

The biggest project by capacity #Buxar Thermal is on track and it has already signed PPA with #Bihar govt. for 86% power so the project is secured from #commercial angles.
timesofindia.indiatimes.com/city/patna/bux…

SJVN has also forayed into the fields of #Renewable Energy, #PowerTransmission and Thermal. SJVN has envisaged Internal Growth Targets and is vigorously marching forward for achieving installed capacity of 5000 MW by 2023, 12000 MW by 2030 and 25000 MW by year 2040.

SJVN has expressed keen interest in tapping #Hydro Projects of about 15,000 MW in #ArunachalPradesh in the next 10-15 years.
#ArunachalPradesh government had decided to allot the entire #Lohit Basin to SJVN to study and harness the hydro potential exceeding 7,000 MW.

SJVN diversified into #solar power generation with commissioning of its first project in Charanka Solar Park, Gujarat. The 5 MW project was commissioned on March 31, 2017.

Recently, SJVN invited bids for the development of a 100 MW (AC) solar power project at Dholera solar park (Phase IX) in Gujarat. SJVN intends to enter into a power purchase agreement with Gujarat Urja Vikas Nigam Limited in response to the tender that was reissued in March.

For next Financial Year a #CAPEX of Rs. 2880 crore is planned.Whereas SJVN has an ambitious target of Rs. 25000 crore investment in ongoing and upcoming projects in the next five years.

Sjvn's economic #moat
1. High rates of Free Cash Flow -It's is an impressive 16.5%.
2. High #ROCE - The figure is an eye-catching 11.1%.
3. High #ROE: Sjvn has a 5-year average ROE of 12.9%.
4. High Operating Margins - Sjvn has a 5-year average operating margin of 62.5%.

SJVN’s flagship 1500 MW Nathpa Jhakri Hydro Power Station and 412 MW Rampur Hydro Power Station has been invariably exceeding their design energy targets and their Plant Availability Factors are constantly being above 100%.

#Financial position of SJVN also remained healthy with total revenue amounting to Rs 2908.99 crore and net profit of Rs. 1364.29 crore in FY 2018-19. This year SJVN is sure of making capital investment of Rs. 1200 crore in the construction of power projects in India and abroad.

Looking at the #FairValue calculations, Fair value of #SJVN currently is 24.30 which is still lower than Book value of 29.97 - 30.
Please find the link for the same below:

Fair Value Calculation: simplywall.st/stocks/in/util…

The company has a healthy dividend payout, and the #yields are 7-10% and it's a consistent #dividend player. D/E ratios are improving Y-O-Y. It's the safest bet currently and it's revenues should shoot up by 2023 when most of the projects will come online

The company ticks all the boxes of generic parameters from safety point of view and deserves a place albeit small in any portfolio :) would invest my FD Savings into this.. the dividends should cover the interest income

@threadreaderapp unroll.
@Raunak_Bits @Agarwal_Ishu @PrathameshRathi @VPaldiwal