Shares of SJVN, NHPC, and RailTel Corporation of India experienced gains of up to 5.2% in Monday’s intraday trading, spurred by the Indian government’s decision to grant ‘Navratna’ status to these state-owned companies.
As of Monday morning, SJVN shares were up by 3.3%, NHPC stock increased by 2.45%, and RailTel Corporation saw a rise of 4.59%.
When Did the government approve Navratna status ?
On Friday, August 30, the government upgraded four Central Public Sector Enterprises (CPSEs) to ‘Navratna’ status, including RailTel Corporation of India, Solar Energy Corporation of India (SECI), SJVN, and NHPC. This upgrade raises the total number of Navratna CPSEs in India to 25.
The Navratna status grants these enterprises greater autonomy in financial and operational matters, enhancing their growth prospects through increased agility, improved geographical presence, and a focus on technology. The finance ministry highlighted that this classification would accelerate the companies’ growth.
What Did the DPE Statement Say?
The Department of Public Enterprises (DPE) stated that RailTel Corporation of India is now the 22nd Navratna CPSE, with an annual turnover of Rs 2,622 crore and a net profit of Rs 246 crore for FY24. Additionally, SECI has been designated as the 23rd Navratna CPSE. SECI, under the Ministry of New and Renewable Energy (MNRE), reported an annual turnover of Rs 13,035 crore and a net profit of Rs 436 crore for FY24.
Share Performance of SJVN, RailTel and NHPC
SJVN stock performance in last one year
In terms of stock performance, SJVN shares have demonstrated mixed returns across multiple time frames. Over the past month, the stock has given a commendable -5.26% return, but the last six months have seen even impressive results, with a substantial increase of 11.46%, indicating a strong upward trend.
Year-to-date, SJVN shares have surged by 46.70%, reinforcing the stock’s positive momentum in the current fiscal year. Looking at the broader picture, the stock has delivered an impressive return of over 109.66% in the last twelve months, emphasizing its sustained growth and attractiveness to investors.
NHPC stock performance in last one year
NHPC shares have shown mixed performance across different time frames. Over the past month, the stock has declined by 5.09%. However, it has performed significantly better over the last six months, with a notable increase of 10%.
Year-to-date, NHPC shares have surged by 48.16%, reflecting strong positive momentum this fiscal year. Looking at the past twelve months, the stock has delivered an impressive return of over 91.09%, highlighting its sustained growth and appeal to investors.
RailTel stock performance in last one year
The shares of Bajaj Auto have demonstrated positive returns across various time intervals. In the last month, the stock delivered a positive return of 4.61%. Over the past six months, it exhibited strong momentum with returns of 16.09%, indicating a robust performance.
Year-to-date figures further emphasized the stock’s bullish trend, recording an impressive growth of 44.16%. Looking at the broader horizon, the shares have shown consistent strength, given returns of over 118.13% in the last year.
What Are Navratna Companies?
Navratna status is awarded to government-owned enterprises in India that have previously been classified as ‘Miniratna’ Category I, recognizing their exceptional financial performance and market standing. Introduced in 1997, the Navratna scheme was designed to identify Central Public Sector Enterprises (CPSEs) with significant competitive advantages and to aid their growth into global leaders.
Companies with Navratna status are granted enhanced autonomy, which allows for faster decision-making and increased operational efficiency. This status enables them to establish joint ventures abroad, explore new markets, and utilize local expertise.
Additionally, Navratna companies benefit from greater opportunities for technological innovation through strategic alliances, strengthened market positioning, and the potential for mergers and acquisitions, all contributing to their growth and expanded market share.