Fundamentally Strong Navratna Stocks

The table below highlights fundamentally strong Navratna stocks, ranked by market capitalization and 1-year returns. Top performers include Rail Vikas Nigam Ltd, with a remarkable 161.29% 1-year return, and National Aluminium Co Ltd, delivering 134.28%. Other notable stocks are Bharat Electronics Ltd at 96.40% and Mazagon Dock Shipbuilders Ltd at 96.43%, showcasing consistent performance across key sectors.

The table below shows the fundamentally strong Navratna stocks based on the highest market capitalisation and 1-year return.

Introduction To Navratna Stocks With Strong Fundamentals

Bharat Electronics Ltd

Bharat Electronics Limited, headquartered in India, specializes in manufacturing and supplying electronic equipment and systems for both defense and non-defense markets. The company’s defense product range includes navigation systems, communication products, radars, naval systems, electronic warfare systems, avionics, electro-optics, tank and armored fighting vehicle electronic systems, weapon systems, simulators, and more. 

In the non-defense sector, the company offers products and services such as cyber security, e-mobility, railway systems, e-governance systems, homeland security, civilian radars, turnkey projects, components/devices, and telecom and broadcast systems.  

• Close Price ( ₹ ): 280.95
• Market Cap ( Cr ): 205368.24
• 1Y Return %: 96.40
• 6M Return %: 20.66
• 1M Return %: -2.06
• 5Y CAGR %: 50.45
• % Away From 52W High: 21.20
• 5Y Avg Net Profit Margin %: 15.94

Rail Vikas Nigam Ltd

Rail Vikas Nigam Limited (RVNL) is an Indian company dedicated to advancing rail infrastructure. RVNL specializes in carrying out a wide range of projects such as new lines, gauge conversion, railway electrification, bridges, workshops, and production units. 

The company is involved in every aspect of project development, from conceptualization to completion, working on a turnkey basis and overseeing design, cost estimation, contract procurement, project management, and commissioning.  

• Close Price ( ₹ ): 419.50
• Market Cap ( Cr ): 87466.59
• 1Y Return %: 161.29
• 6M Return %: 52.21
• 1M Return %: -11.22
• 5Y CAGR %: 77.14
• % Away From 52W High: 54.23
• 5Y Avg Net Profit Margin %: 5.96

Mazagon Dock Shipbuilders Ltd

Mazagon Dock Shipbuilders Limited specializes in the construction and repair of a wide range of vessels, including ships, submarines, and engineering products. The company focuses on the building of warships, submarines, and defense equipment. 

Its shipbuilding division is involved in constructing and refurbishing commercial vessels and naval ships, while its submarine and heavy engineering division handles the building, repair, and refitting of diesel and electric submarines. The company’s product offerings include shipbuilding and submarine construction. It manufactures cargo ships, passenger ships, supply vessels, support vessels, tankers, tugs, dredgers, fishing trawlers, barges, and border outposts. 

• Close Price ( ₹ ): 3926.10
• Market Cap ( Cr ): 79185.51
• 1Y Return %: 96.43
• 6M Return %: 64.13
• 1M Return %: -8.35 
• % Away From 52W High: 49.26
• 5Y Avg Net Profit Margin %: 12.23

NMDC Ltd

NMDC Steel Limited, an Indian company, is involved in the production of iron ore. The company operates mechanized iron ore mines in Chhattisgarh and Karnataka. It currently produces approximately 35 million tons per year from its facilities in the Bailadila Sector in Chhattisgarh and Donimalai in the Bellary-Hospet region of Karnataka. 

Additionally, NMDC Steel Limited is in the process of establishing a 3 million-ton integrated steel plant in Nagarnar, Chhattisgarh, which will specialize in manufacturing hot rolled coil, sheets, and plates.

• Close Price ( ₹ ): 218.80
• Market Cap ( Cr ): 64121.66
• 1Y Return %: 28.86
• 6M Return %: -18.14
• 1M Return %: -8.07
• 5Y CAGR %: 17.29
• % Away From 52W High: 30.87
• 5Y Avg Net Profit Margin %: 31.43

Container Corporation of India Ltd

Container Corporation of India Limited (CONCOR) is a holding company involved in logistics and transportation services. The company operates in two segments: EXIM and Domestic. Both divisions handle transportation and warehousing activities. 

CONCOR provides container transportation services by rail and road, as well as logistics facilities such as dry ports and container freight stations. Its international services include air cargo movements, bonded warehousing, and cold chain services, among others. Domestic services feature volume discounts, door delivery, and terminal handling charges.  

• Close Price ( ₹ ): 785.65
• Market Cap ( Cr ): 47869.21
• 1Y Return %: 3.98
• 6M Return %: -23.52
• 1M Return %: -11.12
• 5Y CAGR %: 6.43
• % Away From 52W High: 50.19
• 5Y Avg Net Profit Margin %: 10.73

National Aluminium Co Ltd

National Aluminium Company Limited, based in India, primarily focuses on manufacturing and selling alumina and aluminum. The company consists of two main segments: Chemical and Aluminium. 

The Chemical segment produces calcined alumina, alumina hydrate, and related products, while the Aluminium segment manufactures aluminum ingots, wire rods, billets, strips, rolled products, and other related items. The company operates a 22.75 lakh tons per annum alumina refinery plant in Damanjodi, located in the Koraput district of Odisha, as well as a 4.60 TPA (Tons Per Annum) aluminum smelter in Angul, Odisha.  

• Close Price ( ₹ ): 219.87
• Market Cap ( Cr ): 40382.02
• 1Y Return %: 134.28
• 6M Return %: 16.03
• 1M Return %: -3.10
• 5Y CAGR %: 39.15
• % Away From 52W High: 12.79
• 5Y Avg Net Profit Margin %: 12.10

NLC India Ltd

NLC India Limited, an India-based company, is involved in lignite and coal mining, power generation using lignite and renewable energy sources, and consultancy. The company’s operations are divided into Mining and Power Generation segments. 

It has a lignite mining capacity of about 30.1 million metric tons per year and a coal mining capacity of 20 million metric tons per year. The company’s mining activities include one open-cast coal mine and four open-cast lignite mines. NLC operates five power stations – four in Neyveli, Tamil Nadu, and one in Barsingsar, Rajasthan – with a total capacity of approximately 3,640 megawatts.

• Close Price ( ₹ ): 232.30
• Market Cap ( Cr ): 32211.57
• 1Y Return %: 43.53
• 6M Return %: 1.20
• 1M Return %: -13.08
• 5Y CAGR %: 33.69
• % Away From 52W High: 34.22
• 5Y Avg Net Profit Margin %: 10.10

NBCC (India) Ltd

NBCC (India) Limited, headquartered in India, provides value-added services across three main segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering Procurement and Construction (EPC). Within the PMC segment, the company undertakes civil construction projects, infrastructure projects related to national security, projects for the civil sector, as well as implementation for initiatives like the Pradhan Mantri Gram Sadak Yojna (PMGSY) and developmental activities in the Northeastern Region. 

The Real Estate Development segment focuses on residential projects like apartments and townships, as well as commercial projects including corporate office buildings and shopping malls. The EPC segment provides a range of services such as project conceptualization, feasibility studies, detailed project reports, engineering, procurement, construction, commissioning, and testing. 

• Close Price ( ₹ ): 90.00
• Market Cap ( Cr ): 24300.0
• 1Y Return %: 98.09
• 6M Return %: -0.07
• 1M Return %: -19.56
• 5Y CAGR %: 29.34
• % Away From 52W High: 55.37
• 5Y Avg Net Profit Margin %: 2.73

Ircon International Ltd

Ircon International Limited, headquartered in India, is a fully integrated engineering and construction firm specializing in infrastructure development across various sectors. These sectors include railways, highways, bridges, tunnels, metro systems, electrification projects, high voltage sub-stations, as well as commercial and residential buildings, and railway production units. 

The company provides engineering procurement and construction (EPC) services for infrastructure projects on a lumpsum turnkey, EPC, and item-rate basis. Ircon collaborates with other central public sector enterprises (CPSEs) under the Ministry of Coal for coal connectivity projects, in addition to undertaking projects under build, operate, transfer (BOT) and hybrid annuity models. 

• Close Price ( ₹ ): 191.78
• Market Cap ( Cr ): 18037.21
• 1Y Return %: 21.26
• 6M Return %: -21.00
• 1M Return %: -14.35
• 5Y CAGR %: 36.28
• % Away From 52W High: 83.34
• 5Y Avg Net Profit Margin %: 7.56

RITES Ltd

RITES Limited is an Indian engineering and consulting firm that offers a wide range of services in transportation infrastructure and related technologies, from initial concept development to project completion. The company operates in four main segments: Consultancy Services, Leasing of railway rolling stock and equipment, Export of rolling stock, equipment, and spare parts, and Turnkey Construction Projects. 

Its areas of expertise cover a variety of sectors including Railways, Metros, Airports and Land Ports, Ports and Harbors, Highways, Ropeways, Tunnels and Bridges, Institutional Buildings, Renewable Energy, and Urban Planning and Infrastructure. 

• Close Price ( ₹ ): 272.90
• Market Cap ( Cr ): 13115.68
• 1Y Return %: 21.03
• 6M Return %: -17.81
• 1M Return %: -11.38
• 5Y CAGR %: 13.35
• % Away From 52W High: 51.33
• 5Y Avg Net Profit Margin %: 20.11

Engineers India Ltd

Engineers India Limited is an engineering consultancy and engineering, procurement, and construction (EPC) company. The company operates in various business segments such as Consultancy & Engineering Projects and Turnkey Projects. Its business activities cover hydrocarbon, chemicals and fertilizers, mining and metallurgy, power, and infrastructure sectors. 

In hydrocarbon operations, the company is involved in petroleum refining, onshore and offshore oil and gas, pipelines, strategic storage, as well as port & terminal services. The Chemicals & Fertilizers division includes petrochemicals and fertilizers. Services provided by the company encompass technologies, pre-Front End Engineering Design (FEED) and FEED, project management, supply chain management, construction, and specialized services.

• Close Price ( ₹ ): 180.36
• Market Cap ( Cr ): 10137.0
• 1Y Return %: 22.53
• 6M Return %: -27.17
• 1M Return %: -8.34
• 5Y CAGR %: 11.61
• % Away From 52W High: 68.50
• 5Y Avg Net Profit Margin %: 9.36

What are Navratna Stocks?

Navratna Stocks refers to a select group of public sector companies in India that have been granted higher operational and financial autonomy by the government. These firms are recognized for their significant contributions to the economy, strong performance, and potential for growth, making them attractive investment options.  

The term “Navratna” implies that these companies possess nine jewels, symbolizing their status and capabilities. Investors often seek out these stocks due to their solid fundamentals, the backing of the government, and their ability to operate competitively in the market while pursuing expansion opportunities.

Features Of Fundamentally Strong Navratna Stocks In India

The key features of fundamentally strong Navratna stocks lie in their robust financial health, consistent returns, and significant contributions to the nation’s economy. These stocks are ideal for investors seeking stability and growth opportunities.

1. Strong Financial Fundamentals
   Navratna stocks boast solid financial metrics, including high market capitalization, consistent profitability, and low debt, making them reliable investment options for both long-term stability and consistent returns.
2. Government Backing
   These companies benefit from government ownership and policy support, providing a safety net during economic fluctuations and boosting investor confidence in their performance.
3. Sectoral Leadership
   Navratna companies lead in critical industries like defense, energy, and infrastructure, ensuring sustainable demand and market dominance, which directly translates to steady financial growth.
4. Dividend Payouts
   Many Navratna stocks are known for regular and attractive dividend payouts, providing investors with a steady income stream alongside capital appreciation.
5. Economic Contributions
   These stocks play a crucial role in nation-building through significant contributions to GDP, employment, and infrastructure development, reinforcing their relevance in India’s economic landscape.

List of Fundamentally Strong Navratna Stocks Based on 6 Month Return

The table below shows the list of fundamentally strong Navratna stocks based on a 6-month return.

Best Fundamentally Strong Navratna Stocks 2024 Based on 5 Year Net Profit Margin

The table below shows the best fundamentally strong Navratna stocks in 2024 based on a 5-year net profit margin.

Fundamentally Strong Navratna Stocks NSE Based on 1M Return

The table below shows the fundamentally strong Navratna stocks NSE based on a 1-month return.

High Dividend Yield Fundamentally Strong Navratna Stocks

The table below shows the high dividend yield fundamentally strong Navratna stocks.

Historical Performance of Fundamentally Strong Navratna Stocks

The table below shows the historical performance of fundamentally strong Navratna stocks.

How To Invest In Fundamentally Strong Navratna Stocks?

Investing in fundamentally strong Navratna stocks requires understanding their financial health and sectoral impact. These stocks, backed by government ownership, provide stable returns. Use a reliable stockbroker like Alice Blue to streamline your investment process.

1. Open a Demat and Trading Account
   Start by opening a Demat and trading account with a trusted broker such as Alice Blue, offering user-friendly platforms and low-cost services for seamless trading in Navratna stocks.
2. Research Stock Fundamentals
   Analyze key financial indicators such as market capitalization, dividend history, and debt levels. Choose stocks with strong fundamentals and consistent performance over time for a stable investment portfolio.
3. Focus on Sectoral Strength
   Navratna stocks operate in critical sectors like energy, infrastructure, and defense. Identify sectors with growth potential or policy support to maximize long-term returns.
4. Diversify Your Portfolio
   Invest across multiple Navratna companies to balance risk. Diversification ensures that underperformance in one sector doesn’t overly impact your overall returns.

Impact of Government Policies on Fundamentally Strong Navratna Stocks

Government policies play a crucial role in shaping the performance of fundamentally strong Navratna stocks. Policies promoting infrastructure development, defense modernization, and renewable energy significantly benefit Navratna companies operating in these sectors, boosting their revenue and market value. Tax incentives and favorable trade policies further enhance their profitability and investor appeal.

Conversely, regulatory changes or increased compliance costs can impact short-term performance. However, government-backed Navratna companies often receive strategic support during economic fluctuations, ensuring stability. This symbiotic relationship underscores their resilience and critical role in India’s economic and industrial growth.

How Navratna Stocks Perform In Economic Downturns?

Navratna stocks generally demonstrate resilience during economic downturns due to their strong financial fundamentals and strategic importance to India’s economy. Backed by government ownership, these companies benefit from consistent policy support and operate in essential sectors like energy, infrastructure, and defense, ensuring sustained demand and stable revenues.

However, like all investments, Navratna stocks are not immune to challenges. Industries reliant on global trade or commodity prices may face temporary slowdowns. Despite this, their long-term stability and critical role in the economy make them a preferred choice for risk-averse investors.

Advantages Of Investing In Fundamentally Strong Navratna Stocks?

The primary advantage of investing in Navratna stocks lies in their government backing, strong financial fundamentals, and strategic importance in critical sectors, offering investors stability, consistent returns, and opportunities for long-term growth.

1. Government Ownership
   Navratna stocks benefit from government ownership, ensuring policy support and operational stability. This backing reduces risks during market volatility and provides investors with confidence in their long-term performance.
2. Consistent Dividend Payouts
   Many Navratna companies regularly pay dividends, offering a steady income stream for investors while also contributing to capital appreciation, making them attractive for income-focused portfolios.
3. Sectoral Leadership
   These companies lead in sectors like energy, defense, and infrastructure, ensuring sustained demand and reliable revenue generation, which contributes to their consistent financial performance.
4. Resilience During Downturns
   Navratna stocks demonstrate resilience during economic slowdowns due to their essential services and robust fundamentals, making them a stable choice for risk-averse investors.
5. Diversified Growth Opportunities
   Navratna companies operate across various sectors, providing investors with exposure to multiple industries, which helps in portfolio diversification and reduces sector-specific risks.

Risks Of Investing In The Fundamentally Strong Navratna Stocks?

The main risk of investing in fundamentally strong Navratna stocks stems from their dependence on government policies and sector-specific dynamics, which can lead to unpredictable fluctuations and challenges during economic or regulatory changes.

1. Policy Dependency
   Navratna companies are significantly influenced by government policies. Changes in regulations or delays in policy implementation can impact their operations, leading to fluctuations in profitability and stock performance.
2. Sector-Specific Challenges
   Many Navratna stocks operate in sectors like energy and infrastructure, which are prone to global commodity price fluctuations and cyclical demand patterns, potentially affecting their revenue and margins.
3. Bureaucratic Delays
   Being government-backed, these companies may face operational inefficiencies or delays in decision-making, which could hinder their ability to adapt swiftly to market changes.
4. Limited Growth Potential
   Due to their public sector nature, Navratna companies might prioritize national objectives over aggressive business expansion, potentially limiting their growth prospects compared to private sector counterparts.
5. Market Volatility
   Despite strong fundamentals, Navratna stocks can experience short-term price volatility due to broader market trends or sectoral underperformance, impacting investor sentiment.

Navratna Stocks GDP Contribution

Navratna stocks significantly contribute to India’s GDP by driving key sectors such as energy, infrastructure, and manufacturing. Their operations enhance industrial output, create employment, and generate tax revenue, playing a vital role in the nation’s economic development. Additionally, their global presence boosts foreign exchange earnings, reinforcing their impact on India’s overall economic growth and stability.

Who Should Invest In Fundamentally Strong Navratna Stocks?

Investing in fundamentally strong Navratna stocks is ideal for individuals seeking stability and long-term returns. These stocks suit investors with a low-to-moderate risk appetite, aiming to benefit from government-backed enterprises in critical sectors.

1. Long-Term Investors
   Investors with a long-term horizon can benefit from the consistent growth of Navratna stocks, supported by their robust fundamentals and significant contributions to the nation’s infrastructure and economic development.
2. Risk-Averse Individuals
   Navratna stocks are government-backed, providing stability during market volatility. They are ideal for individuals looking for safer investments compared to private-sector alternatives.
3. Dividend Seekers
   These stocks offer regular and attractive dividend payouts, making them suitable for investors seeking a steady income stream alongside potential capital appreciation.
4. Sector-Specific Enthusiasts
   Those interested in sectors like energy, defense, and infrastructure can invest in Navratna stocks to leverage growth opportunities in these strategically important industries.

Navratna Stocks With Strong Fundamentals – FAQs

Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.