SJVN (SJVN)

FairStock Score: 26/100 — RISKY

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

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I wear two hats: Buffett's demand for durable moats and Graham's insistence on margin of safety. SJVN is a power generator with government promoter holding of 81.85%, which offers stability and a 2.23% dividend yield. Its latest quarter showed ₹1,082 Cr sales and ₹224 Cr net profit, and the Piotroski F-Score of 8/9 hints at some accounting improvement. But the core numbers trouble me. ROE of 4.46% and ROCE of 4.91% are far too low for a business I'd want to own. Debt/equity at 2.27 is high, and free cash flow is negative ₹3,947 Cr—it is consuming cash, not producing it. Sales and profit are shrinking, down 12.40% and 4.50%, and the five-year revenue CAGR of just 2.59% confirms this is no fast grower. Valuation makes no sense: P/E 38.19 for a low-return, shrinking utility, P/B 1.86, and an EV/EBITDA of 703.38. Graham's Number is ₹36.15, so at ₹67.21 I have a negative margin of safety of -102.01%—I'd be paying a premium for distress. Altman Z-Score of 0.94 signals financial risk. Yes, the high promoter stake and dividend are comforting, but that does not offset negative FCF, high leverage, and poor returns. As Buffett says, price is what you pay, value is what you get. Here, value looks weak relative to price. I'd wait for debt reduction, positive FCF, and ROE improvement; otherwise this is a risky slow grower, not a bargain.

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