Last week, the Central Government has given Navratna status to 4 government companies. These companies are continuously making profit and have fulfilled all the criteria to move from Miniratna to Navratna category. After this, the number of government Navratna companies has increased to 25. These include RailTel Corporation of India Limited (RailTel), National Hydroelectric Power Corporation (NHPC), Solar Energy Corporation of India (SECI) and Satluj Jal Vidyut Nigam Limited (SJVN). The impact of this news was visible on the shares of the companies on Monday and they were seen running at a rapid pace as soon as the market opened.
RailTel doubled its money in a year
First of all, let us talk about Railtel Corporation India Limited, a company associated with Indian Railways, so let us tell you that the share of Railtel Corp, established on 26 September 2000, has emerged as a multibagger stock for its investors. In just one year, the amount of investors investing in this stock has more than doubled. On 4 September 2023, the price of Railtel Share was Rs 231.65, which reached Rs 490 last Friday. According to this, investors have got a return of more than 111 percent. The market cap of the company has become Rs 15750 crore. This stock is witnessing tremendous growth on the first day of the week. Railtel share opened at Rs 512 with a gain of more than 4% and then gained momentum to reach Rs 516.
NPHC did wonders in five years
The second company to which the Department of Public Enterprises (DPE) of the Finance Ministry has given the status of Navratna is the National Hydroelectric Power Corporation (NHPC) and this company has also proved to be a profitable deal for its investors. If we look at the performance of NHPC Share, last Friday, this stock closed at Rs 97.15, up 2.24 percent. This PSU stock has quadrupled the investors’ money by giving a multibagger return of 303.95 percent in the last five years. On September 6, 2019, the price of one share was just Rs 24.05, which has jumped by Rs 73.10. Its market cap is Rs 96600 crore. The effect of getting Navratna status was clearly visible on the shares of NHPC Ltd Share and as soon as the market opened on Monday, its price crossed Rs 100, this government stock is trading with a gain of 3 percent.
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SJVN also became a profitable deal
The next government company to get the status of Navratna company from the Center is Satluj Jal Vidyut Nigam Limited i.e. SJVN Ltd. Its market value is Rs 5243 crore and its share has also proved to be a profitable deal for its investors. The price of SJVN Share has increased by 104.69 percent in just one year and its price has increased from Rs 65 on 4 September 2023 to Rs 133.05. At the same time, the amount of investors has increased five times in five years. On 6 September 2019, one share was Rs 25, which has increased by Rs 107.70 during this period.
SECI’s business increased
The government has also given Navratna status to Solar Energy Corporation of India Limited (SECI). According to the Ministry of Finance, this government company has a production capacity of 69.25 GW in India and does business of more than 42 billion units every year. The company has registered an annual turnover of Rs 13,118.68 crore, registering a growth of 20.85 per cent over the previous year and earned a profit of Rs 510.92 crore in FY24, registering a growth of 34.89 per cent. SJVN shares also started trading at Rs 140, up more than 3 per cent on the first trading day of the week.
Criteria to become a Navratna and its benefits
Here it is important to know what are the standards set to become a Navratna company and what are its benefits. So let us tell you that this status is given to Miniratna PSU. For this, the company has to register a net profit of Rs 5000 crore for 3 consecutive years. Along with this, an average annual turnover of more than Rs 25 thousand crore has to be done during this period. After getting Navratna status, these companies are allowed to invest up to Rs 1000 crore without government approval and these companies are free to invest up to 15 percent of their total assets.
(Note- Before making any kind of investment in the stock market, please take advice from your market experts.)
