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SJVN offers an 11% upside with a target of Rs 144. This detailed blog explores its robust fundamentals, technical indicators, and why it's one of the stocks to buy in the share market today for a balanced portfolio.
In the share market today, Bajaj Broking Research Desk has identified one stock that stands out for its growth potential is SJVN Limited. As a key player in the electricity generation business, SJVN is focused on expanding its energy mix through hydro, solar, and thermal power projects. With ambitious capacity expansion goals and a balanced technical setup, it is considered one of the stocks to buy right now. Here's a deep dive into why SJVN deserves attention in the stock market today.
SJVN is engaged in the business of electricity generation and provides consultancy for hydro-power projects. Its long-term vision to increase its electricity generation capacity is truly impressive, aiming for 5,000 MW by 2023, 12,000 MW by 2030, and 25,000 MW by 2040. This ambitious growth strategy positions SJVN as a dominant player in the sector.
The fundamentals of the electricity generation sector remain strong, which bodes well for SJVN’s growth trajectory. The company’s decision to focus on expanding its installed capacity via a mix of hydro, renewable (especially solar), and thermal power projects ensures that it is well-prepared to meet future energy demands.
SJVN's emphasis on solar energy deserves particular attention. By aiming to add 25 GW of solar power capacity by 2030, the company is making significant strides in the renewable energy sector. This strategic move not only aligns with global trends toward sustainability but also offers long-term growth potential. Furthermore, SJVN’s capital expenditure (capex) plans are supported by an asset monetization strategy, ensuring that the company avoids excessive debt accumulation.
In a share market driven by companies expanding their renewable energy portfolio, SJVN’s disciplined approach makes it a solid pick for investors looking for stocks to buy.
From a technical standpoint, SJVN is currently showing strong upward momentum, offering an ideal opportunity for investors. The stock has recently resumed its uptrend after forming a base near the Rs 125-130 support area. This key support is formed by the confluence of the 34-week exponential moving average (EMA) and the demand line connecting lows since February 2024.
The stock has been consolidating around this support level for the last four to five weeks, and this phase appears to be reaching maturity. This consolidation period signals a fresh entry point for investors. The stochastic oscillator on the weekly chart has generated a "buy" signal, rebounding from the oversold territory. This indicates that the stock is likely to move higher in the near term.
With a target price of Rs 144, based on the 61.8% retracement of the previous decline (Rs 159 to Rs 124), the stock presents an 11% upside potential. A stop-loss at Rs 122 ensures that risk is well-managed for those looking to enter the stock market with SJVN.
1. Ambitious Growth Targets: SJVN aims to expand its installed electricity generation capacity significantly by 2040. This growth will be driven by a mix of hydro, thermal, and renewable energy, especially solar power.
2. Sustainable Expansion: The company’s strategy of raising funds through asset monetization ensures it can meet its capital expenditure requirements without taking on too much debt. This is particularly important in the current stock market today, where financial stability is key.
3. Strong Technical Indicators: The stock’s technical setup shows signs of a continued uptrend, with a target price of Rs 144 and a stop-loss of Rs 122. Investors looking for stocks to buy with strong technical signals will find SJVN attractive.
4. Balanced Risk-Reward Scenario: With an upside potential of 11%, SJVN offers a balanced risk-reward profile, making it a compelling stock for both short-term gains and long-term growth.
For investors looking at stocks to buy in the share market today, SJVN presents a compelling case. Its strong fundamentals, ambitious growth plans, and favourable technical setup make it a solid choice for both short-term and long-term investors. The company’s focus on renewable energy, particularly solar power, aligns with global trends and ensures that SJVN is well-positioned for future growth.
Moreover, the stock’s technical indicators suggest that a fresh uptrend is on the horizon, offering a target price of Rs 144 with an 11% upside potential. With a stop-loss at Rs 122, investors can confidently enter this trade, balancing risk, and reward effectively.
In the dynamic world of the stock market, SJVN stands out as a stock with both growth potential and stability. For those seeking to diversify their portfolio and invest in the growing renewable energy sector, SJVN is one of the best stocks to buy right now.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.
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