NHPC vs SJVN Which Is More Attractive?

NHPC Limited and SJVN Limited are two prominent public sector companies in the power sector of India. NHPC Limited is primarily engaged in the generation of hydroelectric power, while SJVN Limited is involved in the generation and transmission of renewable energy. Both companies are listed on the stock exchange and have been performing well in recent years. Investors often compare the two stocks to determine which one offers better potential for growth and returns.

NHPC or SJVN?

When comparing NHPC and SJVN, different investors may prioritize various metrics based on their investment strategies and goals. So, ask yourself what type of investor you are. This will guide you in determining which metrics are most important for your investment decision between NHPC and SJVN.

Dividend Investors:

Dividend investors look for stable and growing income streams, using dividend metrics to assess potential investments. A company's dividend yield essentially measures the size of its dividend relative to the total market value of the company. NHPC has a dividend yield of 2.34%, while SJVN has a dividend yield of 1.65%. Beyond the yield itself, considering the growth and sustainability of these dividends is also crucial. NHPC reports a 5-year dividend growth of 5.73% year and a payout ratio of 0.00%. On the other hand, SJVN reports a 5-year dividend growth of -15.05% year and a payout ratio of 0.00%.

Value Investors:

Value investors focus on financial metrics to determine a stock's intrinsic value compared to its market value. The Price-to-Earnings (P/E) Ratio links stock price to a company's earnings per share, with NHPC P/E ratio at 22.52 and SJVN's P/E ratio at 42.96. Another crucial valuation metric is the Price-to-Book (P/B) Ratio, which compares stock price with book value per share. NHPC P/B ratio is 1.86 while SJVN's P/B ratio is 2.93.

Growth Investors:

Growth investors prioritize metrics indicative of a company's expansion potential. Focusing on top-line growth, NHPC has seen a 5-year revenue growth of 0.10%, while SJVN's is -0.02%. Return on Equity (ROE) measures how effectively a company uses equity investment to generate earnings, with NHPC's ROE at 8.73% and SJVN's ROE at 7.00%.

Retail Investors:

Retail investors often consider stock affordability and company familiarity. For example, day low prices are ₹80.05 for NHPC and ₹108.41 for SJVN. Over the past year, NHPC's prices ranged from ₹51.60 to ₹118.40, with a yearly change of 129.46%. SJVN's prices fluctuated between ₹75.00 and ₹170.50, with a yearly change of 127.33%. Brand recognition also plays a role, as familiarity with a company can influence investment decisions.