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India's Best PSUs Awards 2017- Dalal Street Investment Journal

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PSU Ranking Methodology

We follow a ranking methodology for PSUs based on comprehensive financial parameters. We have evaluated data only of Maharatnas, Navratnas and Miniratnas, among CPSEs. Again, these companies are divided into manufacturing and non-manufacturing, depending on their areas of operation. 

We ranked and awarded companies in three categories – Maharatna/ Navratna/ Miniratna of the year, Most efficient Maharatna/ Navratna/ Miniratna and Fastest growing Maharatna/ Navratna/ Miniratna. 

For the first category of award, the main criteria was the size of the company relative to its peers in the category. The basic parameters to assess the winner companies are in terms of Balance Sheet size, net sales and profitablilty. These parameters are used to evaluate the companies in terms of size. To calculate the final rank, major weightage (30%) is given to Operating Profit and Net Sales each and then the remaining weightage (20%) is given towards Balance Sheet size and Net profit. The composite ranking provides the basis of deciding the winner. 

For selection of the most efficient companies, we evaluated the operational efficiency of the company. Hence, we have considered parameters like profitability per employee, cost of employee as against sales, working capital efficiency and leverage ratio. These parameters reflect the level of efficiency the companies are delivering. Equal weightage has been given to all the four parameters to arrive at the final ranking. 

For selection of the fastest growing companies, the emphasis is on the growth achieved during the last three years, as compared compared to the peers. For this, we consider the growth in sales, net profit and operating profit. To weave in the operational performance compared to the capital invested, we also evaluate return on net worth and return on capital employed. The compounded annual growth for last 3 years relatively depicts a true picture of the company in terms of its overall growth. All individual parameters are given appropriate equal weightage to calculate the final rank. 

Banks 

We evaluate banks and assign ranks using operating profit per employee, growth in operating profit and balance sheet size. Operating profit per employee shows efficiency of banks, growth in operating profit shows growth and balance sheet size shows the size of the banks. For the calculation, higher weightage (60%) is given to operating profit per employee and the remaining weightage is equally distributed between growth in operating profit and balance sheet size. 

Insurance 

In insurance, we are keen to see that the growth in premium is balanced with the growth in claims. Also, we rank the companies to reassure that the best Balance Sheet is rewarded so that the liabilities are sufficiently provided by the reserves and balances.

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List of India's Best PSUs 2017 Winners

Category

Winners

Maharatna - Non Manufacturing  
Maharatna of the Year ( Non-Manufacturing) Oil & Natural Gas Corporation Limited
Most Efficient & Fastest Growing Maharatna of the year ( Non Manufacturing) Coal India Limited

Maharatna - Manufacturing  
Maharatna & Most Efficient Maharatna of the Year (Manufacturing) Indian Oil Corporation Limited
Fastest Growing Maharatna of the year (Manufacturing) NTPC Limited
Turnaround shoots (Maharatna - Manufacturing) SAIL

Navratna - Non Manufacturing
Navratna Fastest growing Navratna of the year (non -manuf.) Power Grid Corporation of India Limited
Most Efficient Navratna of the year (non -Manufacturing) NMDC Limited
Highest employee efficiency (Navratna - Non manufacturing ) REC
Highest wealth creator - Market returns ( Navratna - Non manufacturing) Container corp (Concor)
Highest order book (Navratna - Non manufacturing) NBCC

Navratna - Manufacturing
Navratna & Fastest Growing Navratna of the year (manuf.) Hindustan Petroleum Corporation Limited
Most Efficient Navratna of the year (Manufacturing) Bharat Electronics Limited

Maharatna - Manufacturing
Minratna of the year (Non Manufacturing) Mahanadi Coalfields Limited
Most efficient miniratna of the year (Non Manufacturing) FCI Aravali Gypsum & Minerals India Limited
Fastest growing miniratna (Non Manufacturing) Ed.CIL (India) Limited

Miniratna - Manufacturing
Minratna of the year (Manufacturing) Mangalore Refinery & Petrochemical Limited
Most efficient& Fastest growing miniratna of the year (Manufacturing) Numaligarh Refinery Limited
Highest wealth creator - market returns (Miniratna - Manufacturing) MOIL
Highest dividend yield (Miniratna - Manufacturing) SJVN 
Turnaround in profits (Miniratna - Manufacturing) Chennai Petroleum

Banks
Most efficient Bank SBI
Fastest Growing Bank Vijaya Bank

Insurance
Insurer of the year GIC
Highest Market Share in Gross Premium for 5 Years New India Assurance

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