Mazagon Dock Shipbuilders shares jump 7.5% to touch new record high after receiving 'Navratna' status

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Mazagon Dock Shipbuilders, a leading defence public-sector shipyard under the Ministry of Defence (MoD) in India, surged nearly 7.5% to reach an all-time high of ₹4,271 per share.This jump followed the company's announcement via an exchange filing that the Department of Public Enterprises (DPE) has approved the proposal to grant Navratna status to Mazagon Dock Shipbuilders. This makes the company the 18th Navratna company among the public sector enterprises.

Navratna status is granted to public sector enterprises (PSEs) in India based on a combination of financial performance, operational efficiency, and autonomy. To qualify, a company must first be a Miniratna Category I PSE, demonstrating consistent profitability and meeting specific financial benchmarks.The company received Miniratna Category I status in 2006 from the Department of Public Enterprises.Navratna companies enjoy enhanced financial autonomy, allowing them to invest up to ₹1,000 crore, or 15% of their net worth, on a single project without needing government approval, which facilitates quicker decision-making and project implementation.According to recent data, 16 public sector enterprises in India have been granted Navratna status.

Companies including Bharat Electronics, Container Corporation of India, Engineers India, HAL, MTNL, NALCO, NBCC, NMDC, Oil India, PFC, RINL, REC, RITES, IREDA, IRCON International, and Shipping Corporation of India. Navratna companies can achieve ‘Maharatna’ status by meeting specific performance benchmarks and fulfilling certain eligibility criteria.

The company order book as of March 31, 2024, stood at ₹38,561 crore.Over the past three years, the company's shares have surged by 1541%. The shares are now trading 2774% above