SJVN (SJVN)

FairStock Score: 26/100 — RISKY

Score breakdown: P/E: 0/3 · ROCE: 0/2 · Growth: 2/2 · Dividend: 0/1

Key Financials

Strengths

• Promoter holding of 81.85% provides strong ownership stability and alignment.
• Piotroski F-Score of 8/9 indicates solid recent operational and financial health.
• Latest quarter sales of ₹1,082 Cr and net profit of ₹224 Cr show near-term revenue momentum of 15.92%.
• 2.00% dividend yield offers a small income cushion while waiting.

Concerns

• P/E of 45.38 combined with profit growth of -37.28% indicates an expensive valuation despite falling earnings.
• Debt/Equity of 2.03 and free cash flow of -₹3,947 Cr show high leverage and significant cash burn.
• Altman Z-Score of 0.94 and EV/EBITDA of 703.38 imply financial stress and extreme valuation.
• ROE of 4.46% and ROCE of 4.91% are far below acceptable returns; Graham Number of ₹36.15 versus price of ₹78.97 leaves a -102% margin of safety.

AI Analysis

At ₹78.97, SJVN would have to grow into its price for a very long time. The market capitalization of ₹28,699 Cr rests on a business that earns only 4.46% on equity and 4.91% on capital. That is well below what I require from a power generator. The latest quarter's ₹224 Cr net profit looks decent, but annual profit has fallen 37.28% even as sales grew 15.92%. That tells me margins and underlying economics are weak. A five-year revenue CAGR of 4.33% does not justify a P/E of 45.38. The Graham number of ₹36.15 is barely half the current price; negative 102% margin of safety is the kind of arithmetic that keeps me disciplined. Debt/equity of 2.03 and free cash flow of -₹3,947 Cr are serious red flags. Positive cash flows matter more than reported profits, and this business is consuming capital. Altman Z-score of 0.94 also sits in the danger zone. True, the Piotroski F-score of 8/9 suggests recent operational discipline, and promoter holding of 81.85% gives alignment and perhaps access to capital. The 2.00% dividend yield is modest compensation, not evidence of investment merit. EV/EBITDA of 703.38 tells me the market is paying an extraordinary multiple for earnings before interest, taxes, depreciation and amortization; I cannot make the numbers work. This looks like a slow-growing, capital-hungry utility dressed with one good quarterly number. I need either a much lower price or much better fundamentals. In Benjamin Graham's phrase, price is what you pay, value is what you get. Here the value I can measure does not support the price.

Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer