Home / Business / Money / RCF likely to get Navaratna status this year

RCF likely to get Navaratna status this year

State-owned Rashtriya Chemicals and Fertilisers is likely to get the ‘Navaratna’ status this year, a move that will provide it greater financial autonomy.

RCF likely to get Navaratna status this year

State-owned Rashtriya Chemicals and Fertilisers  is likely to get the ‘Navaratna’ status this year, a move that will provide it greater financial autonomy.

Replying to shareholders’ queries at the 37th Annual General Meeting, RCF Chairman and Managing Director RG Rajan said: “The company is expected to get the Navaratna status by the end of December, 2014”.

According to the latest list of the Department of Public Enterprises, there are 17 PSUs which are accredited with the ‘Navaratna’ status including Bharat Electronics Ltd  and Engineers India Ltd .

According to the DPE guidelines, Navaratna PSUs can decide on their own on investment of 30 percent of their networth in projects in India or abroad. 

Besides, the board of directors of these PSEs have the powers for mergers and acquisitions, subject to certain conditions.

The aim of having categorised some PSUs as Navaratnas was to help them emerge as global players. 

RCF, which already has the ‘Miniratna’ status has already made presentation before the DPE, and is likely to make one final presentation in the coming days, sources added.

The Navaratna status is presently subject to the condition that these PSUs shall not depend up on budgetary support or government guarantees.

Wherever the government guarantee is required under the standard stipulations of external donor agencies, it may be obtained from the Ministry of Finance via the administrative Ministry. Such government guarantee will not affect the Navratna status.

The government plans to divest at least 5 percent stake in RCF in 2015-16.

RCF reported net profit of Rs 83.95 crore for the first quarter ended on June 30, on account of higher income.

Rashtriya Chem stock price

On October 01, 2014, Rashtriya Chemicals and Fertilisers closed at Rs 52.15, down Rs 0.45, or 0.86 percent. The 52-week high of the share was Rs 70.75 and the 52-week low was Rs 30.15.


The company’s trailing 12-month (TTM) EPS was at Rs 5.97 per share as per the quarter ended June 2014. The stock’s price-to-earnings (P/E) ratio was 8.74. The latest book value of the company is Rs 45.47 per share. At current value, the price-to-book value of the company is 1.15.

Leave a Reply

x

Check Also

Rupee recovers 6 paise to 67.01

The rupee today recovered some lost ground by rising 6 paise to ...

Notes ban to have positive impact on economy

NEW DELHI: The government’s demonetisation move has led to widespread adoption of ...