Miniratna Companies in India 2024

Miniratna companies are a group of public sector enterprises in India that are considered relatively small but still important in terms of their operations and contributions to the economy. The Government of India categorizes these companies under the “Miniratna” status to recognize their performance and to provide them with certain financial and operational autonomy.

In this blog, we will discuss the significance of “Miniratna” status, the criteria for earning it, and an overview of the top Miniratna companies. 

Overview of Miniratna Companies

The Indian government grants Miniratna status to a group of public sector companies based on their historical revenue and profit figures. These businesses are given the ability to make decisions by the government, which helps them operate more effectively in their respective industries. These enterprises work under the jurisdiction of the Government of India yet enjoy a great degree of decision-making power in terms of everyday operations, which includes investments, joint ventures, and other commercial decisions. 

The Miniratna companies are divided into two different categories based on the financial position of the companies –

• Miniratna Category I  

The company must satisfy the following conditions to earn a Miniratna Category-I status:

• A company must have continuously made a profit for the last three years.
• A pre-tax profit of at least 30 crores in one of the previous three years.
• The company must have a positive net worth. 

• Miniratna Category II 

The company must satisfy the following conditions to earn a Miniratna Category-II status:

• A company must have continuously made a profit for the last three years.
• The company must have a positive net worth. 

Moreover, to become a Miniratna company, the company should not have defaulted in the repayment of loans or interest payments and shall not depend upon budgetary support or Government guarantees.

Top Miniratna Companies in India Based on Market Capitalization

The top Miniratna stocks in 2024 are:

Overview of the Miniratna Companies

A brief overview of Miniratna companies is given below:

1. Indian Railway Finance Corporation Ltd.

Indian Railway Finance Corporation Ltd. was established in 1986 as the financial arm of the Indian Railway. The IRFC is governed by the Ministry of Railways. The company’s main goal is to raise capital through various means, such as issuing bonds, etc. The international capital market is another source of funding for the company. In 2021, the company launched its initial public offering (IPO) and was listed on the Indian stock exchanges. The company’s main office is located in New Delhi. 

2. Indian Railways Catering and Tourism Corporation Ltd.

The Ministry of Railways formed the Indian Railway Catering and Tourism Corporation of India (IRCTC), a public sector organization. To modernize Indian Railways’ tourist and online ticketing operations, IRCTC was founded in 1999.

In 2002, they introduced irctc.co.in, an online ticketing platform. With this website, customers may make online reservations for tickets. Subsequently, they began providing more services, such as catering services for Indian Railways. The IRCTC mobile application was introduced in response to the growth in smartphone usage and technical advancements. It provides users with a quick way to order tickets, check train schedules, and access other services. 

3. Cochin Shipyard Ltd.

Cochin Shipyard was established by the Indian government in 1972, and the company’s shipyard is located in Kochi, Kerala. The business delivered the MV Rani Padmini, a bulk carrier, as its maiden vessel in 1981. The business constructed the INS Vikrant, India’s first aircraft carrier. The company went public in 2017 to raise funds to modernize its infrastructure. Its main office is located in Kochi, Kerala. 

4. Bharat Dynamics Ltd.

The Indian government formed Bharat Dynamics Ltd. in 1970 as a public-sector undertaking under the Ministry of Defence. The business was founded with the primary goal of producing guided weaponry. The company has created the Prithvi, Akash, and Nag Missiles in partnership with the Defence Research and Development Organization (DRDO). 2018 saw the company’s listing on the Indian Stock Exchange. The company’s headquarters is in Hyderabad. 

5. Hindustan Copper Ltd.

Hindustan Copper was established by the Indian government in 1967 as a central public sector undertaking under the Ministry of Mines. The company’s primary goal is to explore the nation’s copper mining potential. The business took over the mines from NMDC Limited in 1967. The corporation is currently engaged in exploring new mines to boost production. The company’s main office is located in Kolkata. 

6. KIOCL Ltd.

The Indian government established KIOCL, formerly known as Kudremukh Iron Ore Company Limited, in 1976. It is a department of the Ministry of Steel. According to a Supreme Court ruling, the company’s mines were shut down in 2005. Following this, the company began importing iron ore from various suppliers, including Brazil. The company is searching for a new mining lease to guarantee a steady supply of iron ore. The organization’s headquarters is in Bangalore.  

Performance of the Miniratna Companies

Key Performance Indicators (KPIs)

Conclusion

In conclusion, Miniratna Companies of India significantly contribute to the nation’s economic growth. These businesses demonstrate consistent financial performance, effective operational efficiency, and the ability to strike a balance between profitability and social welfare. These businesses are regarded as excellent investment options, but before making investment decisions, it’s wise to consider your risk tolerance and speak with an investing professional.  

Frequently Asked Questions (FAQs)