Heavy Buying: PSU Power Generation Company Achieves Navratna Status: FIIs and DIIs Increase Stake!
The company’s shares have delivered an impressive return of around 115 per cent to its shareholders in the past 1 year only.
The Department of Public Enterprises, Ministry of Finance, Government of India has granted "Navratna Status" to SJVN Ltd.
LIC-backed PSU company is primarily engaged in electricity generation and provides consultancy services for hydropower projects.
Criteria for Granting Navratna Status:
Miniratna Category-I and Schedule 'A' CPSEs are eligible for Navratna status if they meet the following criteria:
Achieved an 'excellent' or 'very good' rating under the Memorandum of Understanding (MoU) system in at least three of the last five years. Secured a composite score of 60 or above in the following six selected performance parameters:
- Net profit to net worth
- Manpower cost to total cost of production/services
- Profit before depreciation, interest, and taxes to capital employed
- Profit before interest and taxes to turnover
- Earnings per share
- Inter-sectoral performance.
Currently, the shares of SJVN Ltd are at around Rs 136.25 per share on the BSE. The company’s current market capitalization stands at Rs 53,543 crore. Additionally, the shares have delivered a multibagger return of over 115 per cent in the past 1 year.
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As per the Quarterly Results, in the Q1 FY25, SJVN Ltd recorded a revenue of Rs 870 crore compared to Rs 675 crore. The operating profit stood at Rs 646 crore. The net profit stood at Rs 357 crore compared to a profit of Rs 272 crore. Looking at the annual performance, the company generated a revenue of Rs 2579 crore in FY24. The operating profit for FY24 was Rs 1843 crore with a net profit of Rs 911 crore compared to a net profit of Rs 1359 crore in FY23.
According to the company's shareholding pattern, the promoters hold a significant 81.85 per cent stake. Public investors own 11.83 per cent of the shares, while Foreign Institutional Investors (FIIs) hold 2.40 per cent and Domestic Institutional Investors (DIIs) own 3.94 per cent.
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Disclaimer: The article is for informational purposes only and not investment advice.