IRCON, RITES shares jump after Centre grants 'Navratna' status
Shares of two PSUs -- IRCON International Ltd and RITES Ltd -- surged 11.6% and 5.23%, respectively -- on Friday after the two companies were granted 'Navratna' status by the central government. IRCON International, in an exchange filing, says the department of public enterprise has granted the "Navratna Status" to IRCON. "IRCON will be the 15th Navratna amongst the CPSEs."
IRCON, a Central Public Sector Enterprises (CPSE) under the ministry of railways, had recorded an annual turnover of ₹10,750 crore and net profit of ₹765 crore on consolidated basis in the year 2022-23. Its profit and revenue on a standalone basis stood at ₹10,262 crore and ₹777 crore, respectively.
Reacting to the development, IRCON stock opened a gap up at ₹138.70 today and surged to an intra-day high of ₹152.25, up 10.7% as compared to the previous session close.
The stock is currently trading 13.5% lower than a 52-week low of ₹174.55 achieved on September 12, 2023. The scrip had touched its 52-week low of ₹40.30 achieved on October 20, 2022. At the current share price of ₹149.55 on the BSE, the company's m-cap stands at ₹14,065.41 crore.
IRCON shares have surged 11.79% in the past week; 1.84% in the past month; 154.86% in the past six months; 150.92% in the year-to-date period; and 250.29% in the one-year period.
Another PSU, RITES, formerly known as Rail India Technical and Economic Service, also says after considering its proposal, the ministry of railways has granted the 'Navratna' status to RITES. The company's board says it may consider payment of a 'second interim dividend' for FY24 on November 8, 2023.
The RITES Ltd stock opened a gap up at ₹489.95 on the BSE and surged to an intra-day high of ₹506.45, up 6.5% as compared to the previous session. The RITES stock is trading 14.6% lower than the 52-week high of ₹583.45 achieved on September 11, 2023. At the current share price of ₹498 on the BSE, the m-cap of the company stands at ₹11,983.86 crore.
The RITES stock has surged 5.73% in the past five days; but has fallen 5.57% in the past month. The scrip has given a 44.13% return in the past six months and a 45.40% return in the year-to-date period. In the past year, shares of RITES Ltd have surged 45.24% in the past year.
The government grants 'Navratna' status to the companies based on criteria such as net profit, manpower cost to total cost of production or cost of services; PBDIT to capital employed; PBIT to turnover; earning per share; and inter-sectoral performance.
RITES reported revenue worth ₹503.67 crore in the quarter ending June 2023, while its net profit was recorded at ₹95.88 crore. In FY23, the company revenue was recorded at ₹2,519.62 crore and it booked a net profit worth ₹530.54 crore.
RITES provides a comprehensive range of services from "concept to commissioning" in all facets of transport infrastructure and related technologies. It is a leading player in the transport consultancy and engineering sector in India. IRCON specialises in the entire spectrum of construction activities and services in the infrastructure sector, including railways and highway construction.
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