IRCON International and RITES soar up to 7.2% after receiving 'Navratna' status
₹143.75 apiece in early Friday trade after the company in an exchange filing on Thursday said it was awarded 'Navratna' status by the Department of Public Enterprises. This makes IRCON the 15th Navratna company among the Central Public Sector Enterprises (CPSEs), as per the company's exchange filing. Furthermore, the Department of Public Enterprises also granted the 'Navratna' status to another PSU, RITES, making it the 16th Central Public Sector Enterprise (CPSE) to receive this prestigious recognition.
Following this development, shares of RITES also zoomed nearly 7% in Friday's early trade to ₹506.30 apiece. At 12:00 p.m., shares of IRCON International and RITES were trading with gains of 6.54% and 5.94%, respectively. Over the past year, the stocks of public sector undertakings (PSUs) have experienced a significant uptrend.
This surge can be attributed to robust order books, strong earnings, and an increase in government capital allocation, as seen in the recent Union Budget. Notably, the S&P BSE PSU index has advanced by an impressive 40.69% in the past year, with 25 stocks yielding returns of over 90%. In this context, IRCON International has been a standout performer, delivering a stellar yearly return of 236.6%, securing the fifth position among the top gainers in the index.
In addition, RITES has also displayed a strong performance, ranking 36th in the index with a yearly return of 44.3%, Trendlyne data showed. Meanwhile, earlier in April, RVNL was also awarded 'Navratna' status. The 'Navratna' companies are typically selected based on their financial performance, operational efficiency, and strategic importance to the Indian economy.
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