Why Goldman Sachs remains bearish on SJVN

ZeeBiz WebTeam Aug 21,2024

Why Goldman Sachs remains bearish on SJVN

[{"selector":"#anim-c8ea3bcc-064d-4eaa-bd59-5f38343705d4 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-2.116192625563631%, 23.584905660377366%) scale(1.4716981132075473)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-1949a8bb-7cbf-4273-936c-8533f5874484","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-3f24a144-9821-4602-bfed-ac9ffea4d3a4","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] Do you have SJVN shares in your portfolio? Here's how Goldman Sachs analysts view the stock now.

Goldman Sachs maintains 'sell'

[{"selector":"#anim-b2bae1a7-ad21-4980-a385-9f28ca2f1633 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-2.2716426241111853%, 23.584905660377366%) scale(1.4716981132075473)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-cf74f5ed-4090-4cbe-8be1-f1a0380e22eb","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-8249bbc5-1cd1-4796-b453-5bd54962b9c7","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] However, the brokerage has raised its target for the SJVN stock to Rs 85 from Rs 75.

Goldman Sachs maintains 'sell' on SJVN

[{"selector":"#anim-7614fbaf-b511-4dc8-9217-29440a84cad5 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-2.2716426241111853%, 23.584905660377366%) scale(1.4716981132075473)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-66619576-7ded-4dae-b2f1-5cb94ef5c760","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-2de31034-4ca8-412c-aa5b-daa3a1aac99c","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] SVJN has announced that its 1320 MW Buxar thermal power plant has been delayed further.

SVJN

[{"selector":"#anim-1208a2ae-b204-4c57-b356-082c28ba1a0b [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-2.1630558905489345%, 23.584905660377366%) scale(1.4716981132075473)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-d5dcc277-0903-4ba3-b743-9b8c8f77d75c","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-c7b6b8a8-44f9-4f8e-bb69-64aeb73f806d","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] The company expects Unit 1 to be commissioned by end-FY25 and Unit 2 in FY26.

SJVN valuation

[{"selector":"#anim-38377e83-485c-4de3-8a58-3b3b89be8188 [data-leaf-element=\"true\"]","keyframes":{"transform":["translate(-2.2716426241111853%, 23.584905660377366%) scale(1.4716981132075473)","translate(0%, 0%) scale(1)"]},"delay":0,"duration":2000,"easing":"cubic-bezier(.3,0,.55,1)","fill":"forwards"}] [{"selector":"#anim-fb7248ca-68fe-427d-8744-2acb52d25810","keyframes":{"transform":["scale(1)","scale(1.5)","scale(0.95)","scale(1)"],"offset":[0,0.33,0.66,1]},"delay":0,"duration":1450,"easing":"ease-in-out","fill":"both","iterations":1}] [{"selector":"#anim-92665d02-a91d-42a1-ab13-589b717e5d21","keyframes":{"opacity":[0,1]},"delay":0,"duration":600,"easing":"cubic-bezier(0.4, 0.4, 0.0, 1)","fill":"both"}] According to Goldman Sachs, at a price to book value multiple of 3.2 times, the risk reward offered by SJVN shares appears to be unfavourable.

Why Goldman Sachs remains bearish on SJVN