{"id":5659,"date":"2024-07-20T12:03:09","date_gmt":"2024-07-20T06:33:09","guid":{"rendered":"https:\/\/uat1.gettogetherfinance.com\/blog\/?p=5659"},"modified":"2025-10-10T17:01:12","modified_gmt":"2025-10-10T11:31:12","slug":"navratna-stocks","status":"publish","type":"post","link":"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/","title":{"rendered":"A Look at India&#8217;s Top Navratna Stocks: Types, Eligibility, &#038; Process Explained"},"content":{"rendered":"\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/A-Look-at-Indias-Top-Navratna-Stocks-1024x597.webp\" alt=\"A Look at India's Top Navratna Stocks\" class=\"wp-image-5660\"\/><\/figure>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_73 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Overview\" title=\"Overview\">Overview<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#What_are_Navratna_Stocks\" title=\"What are Navratna Stocks?\">What are Navratna Stocks?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Key_Takeaways\" title=\"Key Takeaways\">Key Takeaways<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Eligibility_Criteria_of_Navratna_Companies\" title=\"Eligibility Criteria of Navratna Companies\">Eligibility Criteria of Navratna Companies<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#General_Eligibility_Criteria_of_Navratna_Companies\" title=\"General Eligibility Criteria of Navratna Companies\">General Eligibility Criteria of Navratna Companies<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Eligibility_Criteria_for_Miniratna_Category_I_Companies\" title=\"Eligibility Criteria for Miniratna Category I Companies&nbsp;\">Eligibility Criteria for Miniratna Category I Companies&nbsp;<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Eligibility_Criteria_for_Miniratna_Category_II_Companies\" title=\"Eligibility Criteria for Miniratna Category II Companies\">Eligibility Criteria for Miniratna Category II Companies<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#List_of_Navratna_Stocks_in_India_2024\" title=\"List of Navratna Stocks in India 2024\">List of Navratna Stocks in India 2024<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Benefits_of_Navratna_Stocks\" title=\"Benefits of Navratna Stocks\">Benefits of Navratna Stocks<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#More_Freedom_with_Money\" title=\"More Freedom with Money\">More Freedom with Money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Easier_to_Expand_and_Grow\" title=\"Easier to Expand and Grow\">Easier to Expand and Grow<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Become_More_Efficient\" title=\"Become More Efficient:\">Become More Efficient:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-13\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Respected_and_Recognized\" title=\"Respected and Recognized:\">Respected and Recognized:<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-14\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Attract_Top_Talent\" title=\"Attract Top Talent:\">Attract Top Talent:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-15\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Criticism_Consideration_of_Navratna_Stocks\" title=\"Criticism &amp; Consideration of Navratna Stocks\">Criticism &amp; Consideration of Navratna Stocks<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-16\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-17\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#FAQs\" title=\"FAQs\">FAQs<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-18\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#u003cstrongu003eAre_Navratna_stocks_risk-freeu003cstrongu003e\" title=\"u003cstrongu003eAre Navratna stocks risk-free?u003c\/strongu003e\">u003cstrongu003eAre Navratna stocks risk-free?u003c\/strongu003e<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-19\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#u003cstrongu003eWhat_are_some_alternatives_to_Navratna_stocksu003cstrongu003e\" title=\"u003cstrongu003eWhat are some alternatives to Navratna stocks?u003c\/strongu003e\">u003cstrongu003eWhat are some alternatives to Navratna stocks?u003c\/strongu003e<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-20\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#u003cstrongu003eHow_are_Navratna_companies_different_from_Maharatna_companiesu003cstrongu003e\" title=\"u003cstrongu003eHow are Navratna companies different from Maharatna companies?u003c\/strongu003e\">u003cstrongu003eHow are Navratna companies different from Maharatna companies?u003c\/strongu003e<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-21\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#u003cstrongu003eIs_it_wise_to_invest_all_my_savings_in_Navratna_stocksu003cstrongu003e\" title=\"u003cstrongu003eIs it wise to invest all my savings in Navratna stocks?u003c\/strongu003e\">u003cstrongu003eIs it wise to invest all my savings in Navratna stocks?u003c\/strongu003e<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-22\" href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/navratna-stocks\/#u003cstrongu003eHow_are_dividends_paid_on_Navratna_stocksu003cstrongu003e\" title=\"u003cstrongu003eHow are dividends paid on Navratna stocks?u003c\/strongu003e\">u003cstrongu003eHow are dividends paid on Navratna stocks?u003c\/strongu003e<\/a><\/li><\/ul><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Overview\"><\/span>Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The multibagger public sector unit (PSU) has surged <a href=\"https:\/\/www.livemint.com\/market\/stock-market-news\/375-returns-in-1-year-multibagger-psu-nbcc-hits-10-upper-circuit-on-rs-36-crore-worth-order-buy-or-sell-11720090581337.html\" target=\"_blank\" rel=\"noopener\">10% in a single trading session<\/a> after securing a \u20b936 crore-worth order. This significant order has led to a massive 375% return in just one year, making it a standout performer in the market. The emerging numbers are a testament to the growth potential of Navratna stocks. With the continued support and appealing future performance in India, the question arises &#8211; what are Navratna stocks, and how do the company become eligible for them? This blog guide will take you through the definitions, types, significance, and process of Navratna stocks while listing all the companies till now.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_are_Navratna_Stocks\"><\/span>What are Navratna Stocks?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/What-are-Navratna-Stocks-1024x276.webp\" alt=\"What are Navratna Stocks\n\" class=\"wp-image-5662\"\/><\/figure>\n\n\n\n<p>Navratna companies are a special group of top public sector companies in India that have been given more freedom to make their own decisions and manage their money.<\/p>\n\n\n\n<p>There are mainly two categories of Navratna stocks:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li><strong>For Category I Miniratnas: <\/strong>The company must have earned profits continuously for the last 3 years and must have made a pre-tax profit of Rs 30 crore or more in at least one of those three years. Currently, there are 63 such CPSEs.<\/li><li><strong>For Category II Miniratnas: <\/strong>The company must have made a continuous profit over the past 3 years and maintained a positive net worth. There are currently 15 such CPSEs.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Key_Takeaways\"><\/span>Key Takeaways<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>There are currently 16 Navratna companies in India, working in different areas like energy, minerals, railways, etc.<\/li><li>To become a Navratna company, a public sector company must already be doing very well financially for the past 3 years. It must also meet certain other requirements.<\/li><li>Navratna status allows these companies to spend up to \u20b91,000 crore on a single project without needing the government&#8217;s approval. They can also invest up to 30% of their total wealth in a single project in a year.<\/li><li>Some examples of Navratna companies include Bharat Electronics, Container Corporation of India, Engineers India, Hindustan Aeronautics, ONGC Videsh, and Shipping Corporation of India.<\/li><li>These Navratna companies are very important for India&#8217;s economic growth and development. They make huge investments, work on new ideas and innovations, and provide high-quality products and services.<\/li><\/ul>\n\n\n\n<p><strong>Also Read<\/strong>: <a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/oil-and-gas-stocks\/\" target=\"_blank\" rel=\"noreferrer noopener\">Oil and Gas Stocks<\/a><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_of_Navratna_Companies\"><\/span>Eligibility Criteria of Navratna Companies<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/Eligibility-Criteria-of-Navratna-Companies-1024x276.webp\" alt=\"Eligibility Criteria of Navratna Companies\" class=\"wp-image-5663\"\/><\/figure>\n\n\n\n<p>To be eligible for Navratna status, a CPSE must already be a Miniratna Category I company, have an excellent financial and operational track record, and meet specific performance criteria set by the government. This ensures that only the top-performing public sector enterprises are granted the prestigious Navratna designation.<\/p>\n\n\n\n<p>Based on the search results, here are the key points about the eligibility criteria for Navratna companies in India:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"General_Eligibility_Criteria_of_Navratna_Companies\"><\/span>General Eligibility Criteria of Navratna Companies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>All navratna companies falls under the general category of criteria:<\/p>\n\n\n\n<p><strong>Miniratna Category I Status<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The company must have already attained Miniratna Category I status.<\/li><li>Miniratna Category I companies are those that have consistently made profits for the past 3 years.<\/li><\/ul>\n\n\n\n<p><strong>Schedule A Listing<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The company must be listed under the Schedule A category of Central Public Sector Enterprises (CPSEs).<\/li><\/ul>\n\n\n\n<p><strong>Memorandum of Understanding (MoU) Rating<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The company must have received an &#8220;Excellent&#8221; or &#8220;Very Good&#8221; rating under the MoU system for at least 3 out of the last 5 years.<\/li><\/ul>\n\n\n\n<p><strong>Composite Performance Score<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The company must achieve a minimum composite score of 60 or higher based on the following 6 performance parameters:<\/li><\/ul>\n\n\n\n<p><strong>Net Profit to Net Worth<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>Profit Before Depreciation, Interest and Taxes (PBDIT) to Capital Employed<\/li><li>Manpower Cost to Cost of Production\/Services<\/li><li>Gross Margin as a Percentage of Capital Employed<\/li><li>Gross Profit as a Percentage of Turnover<\/li><li><a href=\"https:\/\/uat1.gettogetherfinance.com\/blog\/understanding-earning-per-share\/\" target=\"_blank\" rel=\"noreferrer noopener\">Earnings Per Share<\/a><\/li><\/ul>\n\n\n\n<p><strong>Board Composition<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The company must have at least 4 independent directors on its Board of Directors.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Miniratna_Category_I_Companies\"><\/span>Eligibility Criteria for Miniratna Category I Companies&nbsp;<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To be eligible for Miniratna Category I status, a Central Public Sector Enterprise (CPSE) must fulfill the following criteria:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The company must have made profits continuously for the past 3 years.<\/li><li>It should have a pre-tax profit of at least \u20b930 crore in one of the 3 preceding years.<\/li><li>Alternatively, the company must have an average annual turnover of at least \u20b9120 crore during the last 3 years.<\/li><li>The company should have a positive net worth.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Eligibility_Criteria_for_Miniratna_Category_II_Companies\"><\/span>Eligibility Criteria for Miniratna Category II Companies<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>To be eligible for Miniratna Category II status, a Central Public Sector Enterprise (CPSE) must fulfill the following criteria:<\/p>\n\n\n\n<ul class=\"wp-block-list\"><li>The company must have made profits continuously for the past three years.<\/li><li>It should have a pre-tax profit of at least \u20b920 crore in one of the three preceding years.<\/li><li>Alternatively, the company must have an average annual turnover of at least \u20b980 crore during the last three years.<\/li><li>The company should have a positive net worth.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"List_of_Navratna_Stocks_in_India_2024\"><\/span>List of Navratna Stocks in India 2024<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/List-of-Navratna-Stocks-in-India-2024-1024x276.webp\" alt=\"List of Navratna Stocks in India 2024\" class=\"wp-image-5664\"\/><\/figure>\n\n\n\n<p>In 1997, the Government of India approved the Navratna status of 9 companies, and later 14 new companies were added to the list by CPSEs. Earlier, 16 companies were listed in the category of Navratna, which now is updated as Power Grid Corporation and HPCL are added to the Maharatna category. Here is a brief list of Navratna companies in India:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><tbody><tr><td><strong>Sr. No.<\/strong><\/td><td><strong>Company Name<\/strong><\/td><td><strong>Established Year<\/strong><\/td><\/tr><tr><td>1<\/td><td>Bharat Electronics Limited (BEL)<\/td><td>1954<\/td><\/tr><tr><td>2<\/td><td>Container Corporation of India Limited (CONCOR)<\/td><td>1988<\/td><\/tr><tr><td>3<\/td><td>Engineers India Limited (EIL)<\/td><td>1965<\/td><\/tr><tr><td>4<\/td><td>Hindustan Aeronautics Limited (HAL)<\/td><td>1940<\/td><\/tr><tr><td>5<\/td><td>Mahanagar Telephone Nigam Limited (MTNL)<\/td><td>1986<\/td><\/tr><tr><td>6<\/td><td>National Aluminium Company Limited (NALCO)<\/td><td>1981<\/td><\/tr><tr><td>7<\/td><td>National Buildings Construction Corporation Limited (NBCC)<\/td><td>1960<\/td><\/tr><tr><td>8<\/td><td>Neyveli Lignite Corporation Limited (NLC India)<\/td><td>1956<\/td><\/tr><tr><td>9<\/td><td>National Mineral Development Corporation Limited (NMDC)<\/td><td>1958<\/td><\/tr><tr><td>10<\/td><td>Rashtriya Ispat Nigam Limited (RINL)<\/td><td>1971<\/td><\/tr><tr><td>11<\/td><td>Shipping Corporation of India Limited (SCI)<\/td><td>1961<\/td><\/tr><tr><td>12<\/td><td>Rail Vikas Nigam Limited (RVNL)<\/td><td>2003<\/td><\/tr><tr><td>13<\/td><td>ONGC Videsh Ltd (OVL)<\/td><td>1965<\/td><\/tr><tr><td>14<\/td><td>Rashtriya Chemicals &amp; Fertilizers Limited (RCF)<\/td><td>1978<\/td><\/tr><tr><td>15<\/td><td>IRCON International Limited<\/td><td>1976<\/td><\/tr><tr><td>16<\/td><td>RITES Limited<\/td><td>1974<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Benefits_of_Navratna_Stocks\"><\/span>Benefits of Navratna Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/Benefits-of-Navratna-Stocks-1024x276.webp\" alt=\"Benefits of Navratna Stocks\" class=\"wp-image-5665\"\/><\/figure>\n\n\n\n<p>Among the various benefits of growing hand-in-hand with the government of India, there are several benefits to listing oneself under the Navratna companies. Some of them are :<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"More_Freedom_with_Money\"><\/span>More Freedom with Money<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Navratna companies have more control over how they spend their money compared to other government-owned companies.<\/li><li>They can invest up to \u20b91,000 crore (or 15% of their total wealth) in a single project without needing the government&#8217;s approval.<\/li><li>Navratna companies can also invest up to 30% of their total wealth in a year, as long as it stays under the \u20b91,000 crore limit.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Easier_to_Expand_and_Grow\"><\/span>Easier to Expand and Grow<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Navratna companies have more freedom to form partnerships, create new companies, and open offices in India and other countries.<\/li><li>This gives them more opportunities to grow their business and try new things.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Become_More_Efficient\"><\/span>Become More Efficient:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The extra freedom and flexibility help Navratna companies work more efficiently and become more competitive.<\/li><li>This can lead to better financial performance, new innovations, and better ability to meet customer needs.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Respected_and_Recognized\"><\/span>Respected and Recognized:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>Being a Navratna company is seen as a mark of excellence and financial strength.<\/li><li>This can improve the company&#8217;s reputation and make it more trusted by people.<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Attract_Top_Talent\"><\/span>Attract Top Talent:<span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\"><li>The extra benefits and growth opportunities at Navratna companies can make them more attractive places to work.<\/li><li>This helps them hire and keep the best employees.<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Criticism_Consideration_of_Navratna_Stocks\"><\/span>Criticism &amp; Consideration of Navratna Stocks<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<figure class=\"wp-block-image size-large\"><img decoding=\"async\" src=\"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-content\/uploads\/2024\/07\/Criticism-Consideration-of-Navratna-Stocks-1024x276.webp\" alt=\"Criticism &amp; Consideration of Navratna Stocks\" class=\"wp-image-5666\"\/><\/figure>\n\n\n\n<p>One of the main concerns is that the Navratna companies might not be accountable enough to the government and the public. With more freedom to make their own decisions, there&#8217;s a worry that they might not always do what&#8217;s best for everyone, and instead focus on their own interests. This could lead to problems like mismanagement, corruption, or decisions that don&#8217;t really help the public.<\/p>\n\n\n\n<p>Another issue is that the Navratna companies might have an unfair advantage over private companies. They get easier access to things like money, resources, and other benefits, which can make it harder for private companies to compete. This could slow down innovation and growth in the private sector. There are also questions about the criteria used to decide which companies become Navratna &#8211; some people think it might not be the best way to judge a company&#8217;s potential or how well it serves the public.<\/p>\n\n\n\n<p>When it comes to considering the Navratna program, the government has to be careful to balance giving the top public sector companies enough freedom to be successful, while also making sure they are still accountable and don&#8217;t misuse their power. It&#8217;s a tricky balance to strike, and there are debates about how to do it in the best way.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span>Conclusion<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>In a nutshell, Navratna stocks were introduced in 1997 by the government by giving Navratna status to 9 companies. All these companies are recognized by the government and have shown massive brand value and performance in the past. As India&#8217;s public sector enterprises continue to evolve and adapt to the changing economic dynamics, the Navratna stocks are poised to play an increasingly vital role in driving the country&#8217;s industrial and economic progress. However, if investors are looking to invest in them, it\u2019s also important to look into the future potential and growth aspects.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"FAQs\"><\/span>FAQs<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n<div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-question-1721456335905\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eAre_Navratna_stocks_risk-freeu003cstrongu003e\"><\/span>u003cstrongu003eAre Navratna stocks risk-free?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>No investment is entirely risk-free. These companies are still subject to market fluctuations and economic factors.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1721456349336\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eWhat_are_some_alternatives_to_Navratna_stocksu003cstrongu003e\"><\/span>u003cstrongu003eWhat are some alternatives to Navratna stocks?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Private companies, u003ca href=u0022https:\/\/uat1.gettogetherfinance.com\/blog\/category\/mutual-funds\/u0022 target=u0022_blanku0022 data-type=u0022URLu0022 data-id=u0022https:\/\/uat1.gettogetherfinance.com\/blog\/category\/mutual-funds\/u0022 rel=u0022noreferrer noopeneru0022u003emutual fundsu003c\/au003e, and exchange-traded funds (ETFs) offer diversification options.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1721456361208\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eHow_are_Navratna_companies_different_from_Maharatna_companiesu003cstrongu003e\"><\/span>u003cstrongu003eHow are Navratna companies different from Maharatna companies?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Maharatna companies have an even higher status with greater financial autonomy and investment limits.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1721456369327\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eIs_it_wise_to_invest_all_my_savings_in_Navratna_stocksu003cstrongu003e\"><\/span>u003cstrongu003eIs it wise to invest all my savings in Navratna stocks?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Diversification is key. Consider spreading your investments across different asset classes to manage risk.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-question-1721456378567\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \"><span class=\"ez-toc-section\" id=\"u003cstrongu003eHow_are_dividends_paid_on_Navratna_stocksu003cstrongu003e\"><\/span>u003cstrongu003eHow are dividends paid on Navratna stocks?u003c\/strongu003e<span class=\"ez-toc-section-end\"><\/span><\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Dividends are declared by the company and credited to your Demat account if you hold the stock on the record date.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Overview The multibagger public sector unit (PSU) has surged 10% in a single trading session after securing a \u20b936 crore-worth order. This significant order has led to a massive 375%&#8230;<\/p>\n","protected":false},"author":1,"featured_media":5661,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[62],"tags":[],"class_list":["post-5659","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-stock-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/5659","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/comments?post=5659"}],"version-history":[{"count":6,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/5659\/revisions"}],"predecessor-version":[{"id":7797,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/posts\/5659\/revisions\/7797"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/media\/5661"}],"wp:attachment":[{"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/media?parent=5659"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/categories?post=5659"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/uat1.gettogetherfinance.com\/blog\/wp-json\/wp\/v2\/tags?post=5659"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}