Navratna stocks in India represent a prestigious category of public sector enterprises (PSEs) that have been granted enhanced financial autonomy by the Government of India.
The benefits of having a Navratna Status for Public Sector Undertakings are that they can invest up to Rs. 1,000 crores or 15 percent of their net worth in a single project without needing government approval.
Further, it has the liberty to invest up to 30 percent of its net worth within a year as long as it stays below Rs. 1,000 crores. Additionally, these companies can engage in joint ventures, form alliances, and establish subsidiaries overseas.
Piotroski score, named after Stanford accounting professor Joseph Piotroski, is a number between ‘0’ and ‘9’ used to assess the strength of a company’s financial position. Financial investors use the score to find the best-value stocks.
Listed below are such Navratna Stocks with high Piotroski score upto 9:
Railtel Corporation of India Ltd
With a market capitalization of Rs. 15,983 crores, the shares of the Telecommunications company started Tuesday’s trading session on a flatter note at Rs. 498.90.
During the trading session, the shares hit a low of Rs. 495.70, losing around 1 percent and are currently trading at Rs. 496 apiece. The company has a Piotroski score of ‘7’.
RailTel Corporation of India was granted Navratna status on August 30, 2024. RailTel is the 22nd CPSE to achieve this status, which allows for greater operational autonomy and the ability to make significant investments without prior government approval.
Looking at the company’s financial performance, the revenue decreased by around 33 percent from Rs. 833 crores during Q4FY24 to Rs. 558 in Q1FY25. On the other hand, the net profits declined by 37 percent from Rs. 78 crores to Rs. 49 crores during the same timeframe.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 11.46 percent and a return on capital employed (RoCE) of 14.38 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 9.62 percent.
Also read: Drone stocks with debt to equity ratio of less than 1 to add to your watchlist
NBCC (India) Ltd
With a market capitalization of Rs. 33,633 crores, the shares infrastructure company started Tuesday’s trading session on a flatter note at Rs. 188.38 compared to its previous close of Rs. 187.59.
During the trading session, the shares hit a low of Rs. 185.86, losing around 1 percent and are currently trading at Rs. 186 apiece. The company has a Piotroski score of ‘8’.
Looking at the company’s financial statements, the revenue decreased by 46 percent from Rs. 3,936.98 crores during the March quarter to Rs. 2,118.68 crores in the June quarter. On the other hand, the net profits declined by 24 percent from Rs. 141.5 crores to Rs. 107.19 crores during the same period.
As per the latest data, the company’s current standalone order book is about Rs. 70,000 crores, while the consolidated order book totals Rs. 81,000 crores. The company expects this to grow to Rs. 1,00,000 crores by the end of the year, fueled by ongoing projects and new orders.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 18.04 percent and a return on capital employed (RoCE) of 27.57 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 3.97 percent.
Mazagon Dock Shipbuilders Ltd
With a market capitalization of Rs. 87,994 crores, the shares of the shipbuilding company started Tuesday’s trading session on a higher note at Rs. 4,322.90 compared to its previous close of Rs. 4,199.80.
During the trading session, the shares hit a high of Rs. 4,468, gaining around 4 percent and are currently trading at Rs. 4,349 apiece. The company has a Piotroski score of ‘8’.
Looking at the company’s performance, the revenue decreased by 24 percent from Rs. 3,104 crores during the March quarter to Rs. 2,357 crores in the June quarter. On the other hand, the net profits jumped by around 5 percent from Rs. 663 crores to Rs. 696 crores during the same period.
As of June 30, 2024, Mazagon Dock Shipbuilders Ltd. reported an order book valued at Rs. 36,839 crores. The order book indicates a robust pipeline for the company, primarily focused on defence-related projects, which aligns with the Indian government’s increased spending in this sector.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 31.02 percent and a return on capital employed (RoCE) of 35.65 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 19.10 percent.
Hindustan Aeronautics Ltd
With a market capitalization of Rs. 3,22,353 crores, the shares of the defence company started Tuesday’s trading session on a higher note at Rs. 4,922.65 compared to its previous close of Rs. 4,688.
During the trading session, the shares hit a high of Rs. 4,925, gaining around 4 percent and are currently trading at Rs. 4,811 apiece. The company has a Piotroski score of ‘9’.
Looking at the company’s financial statements, the revenue declined by around 71 percent from Rs. 14,769 crores during the March quarter to Rs. 4,348 crores in the June quarter. On the other hand, the net profits decreased by 66 percent from Rs. 4,309 crores to Rs. 1,437 crores during the same timeframe.
Also read: Financially strong stocks to buy now for an upside of 15%; Are you holding any?
The company’s order book totals Rs. 94,000 crores, with an anticipated increase to Rs. 1,20,000 crores by the end of the fiscal year. Additionally, the company expects to secure orders ranging from Rs. 1,60,000 to Rs. 1,70,000 crores over the next 18 months to 3 years.
In terms of key financial metrics, the company reported a Return on Equity (RoE) of 26.15 percent and a return on capital employed (RoCE) of 24.49 percent for the period spanning FY23-24. Further, the net profit margin during FY23-24 was 24.99 percent.
Written By Vaibhav Patil
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
