Mazagon Dock Shipbuilders Earns Navratna Status from Government

Mazagon Dock Shipbuilders Limited (MDL), formerly called Mazagon Dock Limited, is a shipyard situated in Mazagaon, Mumbai. It manufactures warships and submarines for the Indian Navy and offshore platforms and associated support vessels for offshore oil drilling. It also builds tankers, cargo bulk carriers, passenger ships, and ferries.MDL is a public sector undertaking and is managed by the Ministry of Defence, the Government of India holds 84.83% stake in the company.

Mazgaon Dock granted Navratna status

Mazagon Dock Shipbuilders has been granted “Navratna” status by the Department of Public Enterprises, according to an exchange filing. This recognition makes Mazagon Dock the 18th Public Sector Undertaking (PSU) in India to receive this prestigious status. With this elevation, Mazagon Dock joins the ranks of distinguished companies such as Engineers India, CONCOR, Bharat Electronics, Hindustan Aeronautics, RVNL, NBCC, MTNL, SCI, RITES, IREDA and more.

As a Navratna company, Mazagon Dock now has the authority to undertake investments worth up to Rs. 1,000 crore without needing approval from the central government. Additionally, these companies can invest up to 30% of their net worth within a year, provided the total remains within Rs.1,000 crore.

Eligibility to become a Navratna

To achieve Navratna status, a Public Sector Undertaking (PSU) first must be classified as a Miniratna company. Additionally, the company needs to report a net profit of Rs. 5,000 crore for three consecutive years and must either maintain an average annual turnover exceeding Rs. 25,000 crore for three years or have an average annual net worth of over Rs. 15,000 crore for the same period. 

Conclusion: Mazagon Dock Shipbuilders’ achievement of Navratna status is a significant milestone, reflecting its robust financial health and operational excellence. With this news, the stock of Mazgaon Dock Shipbuilders Ltd. is up by over 5% and scaled a new 52-week high at Rs.4,271.00 a piece. The stock currently trades at Rs.4,185.50 a piece.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.