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India's Best PSUs Awards 2016 - Dalal Street Investment Journal

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 – Maha¬ratna/ Navratna/ Miniratna of the year, Most efficient Maha¬ratna/ 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 com¬pared 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.


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.


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

List of India's Best PSUs 2016 Winners

Sr No




Maharatna of the Year ( Non-Manufacturing)



Most Efficient & Fastest Growing Maharatna of the Year (Non-Manufacturing)

Coal India Limited


Maharatna of the Year (Manufacturing)

Indian Oil Corporation Limited


Most Efficient Maharatna of the year (Manufacturing)

Bharat Heavy Electricals Limited


Fastest Growing Maharatna of the year (Manufacturing)



Navratna of the year (Manufacturing)

Bharat Petroleum Corporation Ltd (BPCL)


Most Efficient Navratna of the year (Manufacturing)

Bharat Electronics Ltd


Fastest growing Navratna (Manufacturing)

Hindustan Petroleum Corporation Limited


Navratna of the year (Non-Manufacturing)

Power Finance Corporation


Most Efficient Navratna of the year (Non-Manufacturing)



Fastest growing Navratna (Non-Manufacturing)



Highest growth in villages electrified in FY16

Rural Electrification Corporation Ltd


Miniratna of the Year (Non-Manufacturing)

Mahanadi Coalfields Limited


Most efficient Miniratna of the Year (Non-Manufacturing)

Northern Coalfields Limited


Fastest growing Miniratna (Non-Manufacturing)

Ed.CIL (India) Limited


Miniratna of the year (Manufacturing)

Mangalore Refinery & Petrochemical Ltd


Most efficient Miniratna of the Year (Manufacturing)

Balmer Lawrie & Co. Limited


Fastest growing Miniratna (Manufacturing)

Ferro Scrap Nigam Limited


Best Bank

State Bank of India


Higher growth in Advances

IDBI Bank Ltd


Best Insurance Company

Oriental Insurance







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