SJVN Limited

“SJVN is a regulated hydropower PSU that has spent a decade deploying capital at returns below its cost of capital, producing negative profit growth while debt grew 11x to 29567 Cr. The stock trades at 42x trailing earnings on the hope that 25430 Cr of CWIP will convert into profitable assets, but the company's own track record offers no evidence this will occur at adequate returns. Government ownership creates structural misalignment through dividend extraction during heavy borrowing. With ROCE at 5%, profit declining 31% TTM, and zero margin of safety at current prices, this is a value trap unsuitable for long-term ownership.”