List of Navratna Companies in NSE (2024)

What are Navratna Companies?

Navratna companies are part of India’s Central Public Sector Enterprises (CPSEs), which are categorised based on their financial performance and strategic importance. The Government of India introduced the “Navratna” status in 1997, aiming to empower profitable CPSEs with enhanced financial and operational autonomy. These companies are termed “Navratna” (meaning “nine gems”) due to their exemplary contributions to the Indian economy, although the number of companies holding this status has expanded over time.

Eligibility Criteria for Being a Navratna Company in India

To attain Navratna status, a company must meet strict eligibility requirements set by the Department of Public Enterprises (DPE). These include:

1. Strong Financial Performance: The company must score at least 60 out of 100 in parameters such as net profit, net worth, total cost of production, total cost of services, cost of human resources, and profit before interest and taxes.
2. Miniratna Status: The company should already have Miniratna Category I status in order to be in the Navratna shares list, reflecting its financial stability and operational autonomy.
3. Performance Evaluation: Navratna companies must also demonstrate exceptional performance in areas like production, customer satisfaction, market expansion, and quality of management.

Only CPSEs meeting these criteria and approved by the DPE are granted Navratna status, which provides them with enhanced decision-making autonomy.

Benefits of Being a Navratna Company in India

Holding Navratna status provides companies with several advantages:

1. Increased Autonomy: Navratna companies enjoy greater financial independence and decision-making authority, allowing them to invest up to Rs. 1,000 cr. or 15% of their net worth on a single project without government approval.
2. Operational Flexibility: They can form joint ventures, engage in mergers and acquisitions, and expand internationally with limited governmental oversight.
3. Access to Capital Markets: Navratna status also enables these companies to raise funds through the capital markets, providing them with the liquidity needed for expansion.

These benefits collectively enhance the competitiveness of Navratna companies, enabling them to operate more efficiently in an increasingly globalised economy.

How to Invest in Navratna Companies in India?

Investing in Navratna stocks is similar to purchasing any other stock on the NSE. Here’s how you can start:

1. Open a demat/trading/stockbroker account. You can open a demat account with smallcase!
2. Conduct thorough research into the top Navratna stocks in India that are of interest to you. Investors can use tools like the Tickertape Stocks Screener to do this. The screener offers 200+ built-in filters to choose from, and investors can choose the parameters to research the Navratna companies and generate Navratna company lists based on various parameters. 
3. Place a ‘Buy’ Order on the top Navratna stocks of your choosing.

How to Select the Best Navratna Stocks in India to Invest In?

When selecting Navratna companies to invest in, consider factors such as:

1. Financial Performance: You can analyse the company’s revenue, profit margins, and growth rates over recent years.
2. Industry Sector: You can also look into sectors with growth potential, such as energy, telecommunications, or infrastructure.
3. Market Position: You can consider the company’s position in the market and its competitive edge.
4. Dividend History: Navratna companies often offer stable dividends, making them attractive for income-focused investors.

Benefits of Investing in Navratna Companies in India

1. Stable Returns: Navratna companies in the Navratna shares list often operate in core sectors and receive consistent government support, which helps them offer stable returns.
2. Lower Risk: These companies in the Navratna shares list have robust fundamentals, high asset bases, and strategic importance, reducing the risk for investors.
3. Dividend Income: Navratna companies typically distribute substantial dividends, providing regular income to shareholders.
4. Long-Term Growth: With autonomy in decision-making and strong government backing, these companies are positioned for steady long-term growth.

Risks of Investing in Navratna Companies in India

1. Regulatory Interference: Despite their autonomy, Navratna companies are not fully independent and may face governmental intervention that can affect their performance.
2. Economic Downturns: As government-owned entities, even the best Navratna stocks in India are subject to policy changes and economic conditions that may impact their profitability.
3. Limited Innovation: The public sector’s slower pace of innovation compared to private counterparts could limit growth opportunities.

Factors to Consider When Investing in Navratna Companies in India

Before investing in Navratna stocks from the Navratna shares list, consider the following:

1. Government Policies: Changes in government policies or budget allocations can directly impact the list of Navratna companies.
2. Market Trends: It can be helpful to stay updated with industry trends to understand the company’s future prospects.
3. Financial Health: You can review the company’s balance sheet, debt levels, Navratna share prices and cash flows to assess financial stability.
4. Management: The quality of leadership plays a crucial role in the performance of Navratna companies and, consequently the Navratna companies share prices.