The recent conferment of the 'Navratna' status to four public sector undertakings (PSUs) has sent their shares soaring. SJVN, RailTel Corporation of India, NHPC, and Solar Energy Corporation of India have all witnessed significant gains in their stock prices following the announcement.
Understanding the Navratna Status
The Navratna status grants these PSUs greater autonomy in their operations. They can make financial decisions up to a certain threshold without government approval, form joint ventures and alliances, and establish subsidiaries overseas. This increased flexibility is expected to boost their efficiency and competitiveness.
Stock Performance
Shares of SJVN, RailTel Corp, and NHPC have all seen impressive growth in the past year. SJVN and RailTel have delivered returns of 110% and 117%, respectively, while NHPC has surged by 91%. The new Navratna status is likely to further fuel investor confidence in these companies.
Implications of the Navratna Status
The Navratna status is a significant milestone for these PSUs. It empowers them to take more strategic decisions and expand their operations. This could lead to increased profitability and value creation for shareholders.
Other Navratna Companies
Some notable names include Hindustan Aeronautics, Bharat Electronics, NBCC (India) Ltd, Shipping Corporation of India, Rail Vikas Nigam, ONGC Videsh, and IRCON International. If you're interested in investing in these high-performing PSUs, you can easily buy stock online through a brokerage platform.
Overall, the Navratna status is a positive development for the Indian PSU sector. It empowers these companies to compete more effectively in the global market and contributes to the country's economic growth.
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