300% rally in five years! SJVN inks MoU for developing 1800 MW project in Chhattisgarh | Stock Market News
Source: Live Mint
Stock market today: Shares of power generation firm SJVN declined in trade on Monday, March 10, amid weak sentiments on Dalal Street, even as the company signed a memorandum of understanding (MoU) with the government of Chattisgarh to develop 1800 MW Kotpali PSP.
Despite today’s fall, the stock has rewarded investors handsomely over the last few years, giving multibagger returns.
SJVN MoU Details
The public sector undertaking (PSU), in an exchange filing today, said, “SJVN has signed a Memorandum of Understanding (MoU) with the Government of Chhattisgarh and Chhattisgarh State Power Generation Company Limited (CSPGCL) for the development of 1800 MW Pumped Storage Project (PSP) at Kotpali in the state of Chhattisgarh.”
The total investment for the project is estimated at ₹9500 crore, with direct and indirect employment benefits expected for 5000 people during its development phase, the company’s exchange filing added.
The Kotpali PSP is an off-stream closed-loop type PSP in the Balrampur District of Chhattisgarh with an installed capacity of 1800 MW designed to generate energy around 3967 MU.
With increasing reliance on renewable energy sources like solar and wind, PSPs play a pivotal role in ensuring an uninterrupted power supply by storing excess energy during non-peak hours and discharging it during peak demand.
SJVN Share Price Trend
While the SJVN stock has traded in the red over the last year, amid a weakness in the Indian stock market, it has offered multibagger gains on two-, three- and five-year basis.
The PSU stock has rallied 296.90% in the past five years, outperforming benchmark BSE Sensex’s 107.98% rally. Meanwhile, the stock has surged 161% in two years and 196% in three years.
On Monday, the stock settled at ₹85.73 on the BSE, down 2.32%.
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