List of 21 Navratna Companies in India

Introduction

When talking about the Indian cricket team, it’s not just one group of players that crosses the mind. We have the ODI team, the under-19 team, and the IPL teams, to name a few, right? Cricketers who are a part of these teams have proved their mettle and reached ahead of the numerous other players in the country. However, the players’ group defines their representation and roles. 

Similarly, in the landscape of public sector companies, a few companies made it to the top three groups of the government’s ratnas- the Maharatna companies, the Navratna companies, and the Miniratna companies. This article will give you a brief overview of the Navratna companies. 

What are Navratna Companies in India?

While the Maharatna companies make it to the preference lists of many stock advisory companies, Navratna companies are no less in securing their position as a safe investment. A Navratna company in India is a public sector undertaking with special status. The government started awarding the status to eligible companies in 1997. These companies are key economic players with a strong reputation in India and abroad. Navratna status gives them more control over project spending, investments in partnerships or new ventures, and workforce management. 

The Navratna companies enjoy the following perks-

• Navratna companies enjoy financial autonomy, allowing them to invest up to Rs.1000 crore or 15% of their net worth in a single project and up to 30% in a year.
• They can also engage in joint ventures, form alliances, and establish subsidiaries overseas.

Eligibility to Enter Navratna Company List:

To attain Navratna status, a Central Public Sector Enterprise (CPSE) must meet the following criteria-

1. It needs to have Miniratna Category I status and be listed under Schedule A of CPSEs. 
2. The company must have received a Very Good or an Excellent rating in the Memorandum of Understanding (MoU) system for at least three out of the last five years.
3. The company should achieve a composite score of 60 or more based on six performance parameters:

• Net Profit to Net Worth
• PBDIT (Profit Before Depreciation, Interest, and Taxes)
• Workforce cost to cost of production or services
• Gross margin as capital employed
• Gross profit as Turnover
• Earnings per Share

4. The company must have at least four independent directors on its Board of Directors.

How many Navratna companies are there in India?

As of August 2024, there are 21 Navratna companies in India (source). The list of such companies in the descending order of their market capitalization as of 22nd August 2024 is as follows-

S.No	Company Name	Market Cap (in Rs. Cr.)	CMP (Rs.)
1	Hindustan Aeronautics Limited	3,16,965.91	4768.10
2	Bharat Electronics Limited	2,22,546.22	304.50
3	Rail Vikas Nigam Limited	1,19,169.32	570.75
4	Mazagon Dock Shipbuilders Limited	89,973.91	4467.95
5	Indian Renewable Energy Development Agency Limited	69,599.67	257.10
6	NMDC Limited	66,269.79	226.34
7	Container Corporation of India Limited	60,396.30	988.85
8	Housing & Urban Development Corporation Limited	57,334.42	285.45
9	NLC India Limited	37,688.78	271.65
10	National Buildings Construction Corporation Limited	33,190.20	181.89
11	National Aluminium Company Limited	31,452.32	171.35
12	IRCON	25,045.93	265.50
13	RITES	15,803.45	656.75
14	Shipping Corporation of India Limited	12,637.13	273.9
15	Engineers India Limited	12,196.32	215.7
16	Rashtriya Chemicals & Fertilizers Limited	11,408.91	202.69
17	National Fertilizers Limited	7,024.59	142.7
18	Mahanagar Telephone Nigam Limited	4,111.38	64.18
19	Rashtriya Ispat Nigam Limited	–	–
20	ONGC	–	–
21	Central Warehousing Corporation	–	–

Top 10 Navratna Companies in India:

1. Hindustan Aeronautics Limited:

Hindustan Aeronautics Limited (HAL) is a state-owned Indian aerospace and defense company based in Bangalore. It operates under the Indian Ministry of Defence. HAL was founded in 1940 as Hindustan Aircraft Limited in partnership with the Government of Mysore to manufacture aircraft in India. 

In 2018, the company was listed on the BSE and NSE. HAL is mainly involved in aerospace activities, including designing, fabricating, and assembly of aircraft, jet engines, helicopters, and spare parts. As of FY2024, HAL has signed a MoU with General Electric (USA) and M/s Airbus, France, and has allotted 10.04% (Rs.2826.24 crore) of its turnover to R&D. [Source: HAL]

2. Bharat Electronics Limited:

Bharat Electronics Limited (BEL), founded in 1954 under the Ministry of Defence, was created to meet the Indian Defence’s electronic needs. Over the years, BEL has evolved into a major force, supporting the nation’s armed forces with advanced radar, missile systems, communication, electronic warfare, and more technologies. 

The company produces Akash Air Defence Weapon System, the Compact Gun Fire Control System, and BEL’s Coastal Surveillance System, which are now offered to friendly nations as well. 

As of FY2024, the company generated 13.32% of its business through the non-defense segment and 80.7% through the defence segment. Its order book thus shows Rs.4,019 crore non-defence orders and Rs.30,579 crore defence orders. [Source: BEL]

3. Rail Vikas Nigam Limited:

RVNL was set up in 2003 as a fully-owned PSU of the Ministry of Railways. Its goals are to secure extra-budgetary funds and quickly enhance rail infrastructure. 

By March 2005, RVNL was fully operational. It has been rated “Excellent” for nine years by the Department of Public Enterprises and ranked 1st among Railway PSUs four times in the past five years. 

As of FY2024, the company’s 3-year CAGR net profit growth rate was 12%, and the return on equity was 21%. Though the ratios declined from the previous year’s figures, the company’s RoCE for FY2024 19% was more than FY2023 18%.  

4. Mazagon Dock Shipbuilders Limited:

Mazagon Dock Shipbuilders Limited (MDL) in Mumbai, founded in 1774, began as a small dry dock. Over time, it grew into a leading shipbuilding company in India. Since 1960, MDL has built 801 vessels, including warships, submarines, and offshore platforms, mainly for the defense sector. They’ve also constructed 28 warships, ranging from advanced destroyers to missile boats and seven submarines. 

In the first nine months of FY24, MDL received orders worth over Rs.6,000 crores. The company maintained a dividend payout of 29%, generated revenue of Rs.9467 crore, sustained a 5-year CAGR profit growth of 15% and earned a net profit of Rs.1937 crore in FY2024. [Source: Screener.in]

5. Indian Renewable Energy Development Agency Limited

IREDA is a wholly owned government company under the Ministry of New and Renewable Energy. It’s recognized as a public financial institution and registered with RBI as a non-deposit-taking NBFC. IREDA was set up to promote, develop, and commercialize renewable energy sources, providing financial support for energy efficiency and conservation projects. 

In 2023, RBI also classified it as an “Infrastructure Finance Company.” The company launched its IPO in November 2023 and reduced its gross NPA to 2.36% in FY2024. Moreover, the company’s net worth increased to Rs.8,559.43 crore in FY2024 from Rs.5,935.17 crore in FY2023. [Source: IREDA Annual Report]

6. NMDC Limited

NMDC, a government-owned company founded in 1958 under the Ministry of Steel, stands out as one of the most profitable Navratna companies. It often explores minerals like copper, limestone, diamonds, and more in India’s remotest areas. All its mining complexes have earned 5-star ratings from the Indian Bureau of Mines, showcasing NMDC’s commitment to scientific and sustainable mining practices. 

As for its profitability, the company has maintained a 5-year RoE of 24%, and earned a net profit of Rs.5575 crore in FY2024. [Source: Screener.in]

7. Container Corporation of India Limited (CONCOR):

CONCOR was set up in March 1988 and started operations in November 1989. It focuses on providing responsive, cost-effective, and reliable logistics solutions. With a 7 Inland Container Depots (ICDs) network from the Indian Railways, CONCOR ensures efficient service across India. In 2021, it ranked 204th on the “Fortune India 500” list. Known for its reliability and efficiency, CONCOR is highly respected for its ethical practices and commitment to innovative, customer-focused logistics services.

In FY2024, it was also known for its increased net profit of Rs.1262 crore. The company also maintained a 3-year CAGR profit growth of 32% as of FY2024. [Source: Screener.in]

8. Housing & Urban Development Corporation Limited:

Housing and Urban Development Corporation Ltd. (HUDCO), founded in 1970, is a mid-cap NBFC based in New Delhi, India. HUDCO primarily focuses on financing housing and urban development projects across the country. 

By March 31, 2023, it had sanctioned 17,335 housing and urban infrastructure projects, totaling loans of Rs.2,36,555 crore, with disbursements of Rs.1,96,612 crore. As of FY2024, the company maintained a dividend payout of 39%. HUDCO also plays an active role in key Government of India programs like the Smart City Mission (SCM), Jal Jeevan Mission (JJM), and Atal Mission for Rejuvenation and Urban Transformation (AMRUT). [Source: HUDCO Website]

9. NLC India Limited:

NLC India Ltd. (former Neyveli Lignite Corporation Limited), founded in 1956, is a mid-cap company in the Power sector. It functions under the Ministry of Coal, Government of India, and is involved in lignite mining and thermal power generation. It operates in two primary segments: lignite mining and power generation, using both lignite and renewable energy sources. NLC India has a significant role in the fossil fuel mining sector and contributes to India’s energy production. The company crossed the 100 lakh ton mark in coal production and generated a revenue of Rs.16,165 crore in FY2023. However, in FY2024, the revenue dipped to Rs.12999 crore. [Source: Screener.in]

10. National Buildings Construction Corporation Limited:

NBCC (India) Ltd. is a mid-cap company in the Construction sector. It was established in 1960 under the Housing and Urban Affairs Ministry. NBCC operates across three segments: Project Management Consultancy, Engineering Procurement & Construction, and Real Estate. Since 2002-03, the company has shown impressive growth, with its turnover rising from Rs.494 crore in FY 2002-03 to Rs.10,151.37 crore in FY 2018-19. The growth took a dip in 2020 but continued with the uptrend post-pandemic to reach a turnover of Rs.10,433 crores in FY2024. Moreover, the company’s 1-year revenue growth rate (19.03%) outperformed its 3-year CAGR growth rate of 14.85%. [Source: Economic Times]

Conclusion:

Navaratna companies in India play a crucial role in economic development. While some see them as benchmarks for the performance of Indian CPSEs, others aspire to become Maharatna companies. Navaratna companies are vital across energy, engineering, and telecommunications sectors, serving as key pillars of the nation’s industrial growth. They contribute significantly to India’s economy through major investments, fostering innovation, and providing top-quality products and services. 

If you wish to allot a proportion of your portfolio to the Navratna companies, consider consulting a SEBI-registered investment advisory to better analyze growth or undervalued stocks before investing. 

Disclaimer Note: The securities quoted, if any, are for illustration only and are not recommendatory. This article is for education purposes only and shall not be considered as a recommendation or investment advice by Equentis – Research & Ranking. We will not be liable for any losses that may occur. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing. Registration granted by SEBI, membership of BASL & the certification from NISM in no way guarantee performance of the intermediary or provide any assurance of returns to investors.

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