PSU Stocks: Top Listed Public Sector Undertaking Stocks Based on 5-yr CAGR Returns

Last Updated on Oct 2, 2023 by Anjali Chourasiya

Public Sector Undertakings (PSUs) belong to the core sectors of the Indian economy like finance, capital goods, coal, infrastructure, power, oil, mining and metal. These have set a strong industrial base in India and aided economic development. In this article, let’s discuss what a PSU is and its types. Also, check out several lists of PSU stocks based on important parameters.

Listed PSU stocks in India – Updated 2023

Name	Sub-Sector	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio (%)	5Y CAGR (%)	1Y Return (%)	5Y Avg EBITDA Margin (%)	Dividend Yield (%)	Fundamental Score
Oil and Natural Gas Corporation Ltd	Oil & Gas – Exploration & Production	2,35,817.33	191.85	6.65	1.60	51.48	16.18	6.00	10.00
NTPC Ltd	Power Generation	2,29,859.47	245.55	13.59	12.05	53.90	30.49	3.06	5.11
Power Grid Corporation of India Ltd	Power Transmission & Distribution	1,86,709.62	199.75	12.11	13.52	28.04	84.65	5.51	5.76
Coal India Ltd	Mining – Coal	1,78,842.38	295.20	6.35	2.09	38.01	27.11	8.36	8.38
Indian Oil Corporation Ltd	Oil & Gas – Refining & Marketing	1,26,808.72	90.95	12.95	-2.32	38.01	6.81	3.26	5.57
Hindustan Aeronautics Ltd	Aerospace & Defense Equipments	1,26,341.63	1,928.15	21.68	37.67	66.59	25.47	1.46	6.70
Bharat Electronics Ltd	Electronic Equipments	98,718.56	138.30	33.08	38.90	39.70	23.38	1.33	6.00
Indian Railway Finance Corp Ltd	Specialized Finance	97,817.77	76.55	15.44		258.55	26.90	2.00	5.52
Power Finance Corporation Ltd	Specialized Finance	80,819.49	251.90	5.09	32.84	200.60	29.66	4.33	6.66
GAIL (India) Ltd	Gas Distribution	79,854.59	124.40	14.22	-0.31	44.82	14.86	4.12	4.25
Bharat Petroleum Corporation Ltd	Oil & Gas – Refining & Marketing	74,376.29	346.60	34.90	-1.52	14.30	6.23	1.15	5.65
REC Ltd	Specialized Finance	74,072.59	287.40	6.63	31.37	204.93	30.50	4.48	5.75
Indian Railway Catering and Tourism Corporation Ltd	Online Services	53,768.00	680.85	53.45		-3.70	35.97	0.82	6.30
NHPC Ltd	Renewable Energy	52,133.73	52.80	13.40	18.50	46.06	56.65	3.56	5.97
Bharat Heavy Electricals Ltd	Heavy Electrical Equipments	44,100.33	131.00	92.38	13.85	123.93	1.42	0.32	3.72
Mazagon Dock Shipbuilders Ltd	Shipbuilding	44,074.31	2,192.20	39.39		374.66	15.46	0.73	4.34
Container Corporation of India Ltd	Logistics	43,272.08	716.20	36.86	7.37	2.93	22.92	1.55	10.00
NMDC Ltd	Mining – Iron Ore	41,585.30	147.95	7.42	5.50	18.22	51.97		7.23
Steel Authority of India Ltd	Iron & Steel	37,918.22	93.85	17.42	6.58	26.74	16.44	1.63	5.68
Hindustan Petroleum Corp Ltd	Oil & Gas – Refining & Marketing	35,421.15	254.95	-5.07	0.28	17.79	3.68		5.21
Rail Vikas Nigam Ltd	Specialized Finance	34,632.18	169.45	24.38		414.26	9.41	1.28	6.71
Oil India Ltd	Oil & Gas – Exploration & Production	31,691.74	298.85	3.63	6.36	70.09	40.11	6.84	6.75
SJVN Ltd	Renewable Energy	28,451.72	73.15	20.93	21.70	131.12	76.89	2.44	6.66
KIOCL Ltd	Iron & Steel	19,232.28	303.05	-196.93	13.96	65.47	8.59		6.36
Bharat Dynamics Ltd	Aerospace & Defense Equipments	18,431.68	1,031.30	52.34	29.75	18.64	24.18	0.93	4.75
NLC India Ltd	Metals – Diversified	17,762.81	134.95	12.73	15.08	100.52	37.26	2.73
Housing and Urban Development Corporation Ltd	Specialized Finance	17,326.44	91.80	10.18	14.75	164.17	31.80	4.45	5.26
National Aluminium Co Ltd	Metals – Aluminium	17,108.23	97.20	11.92	9.91	43.47	21.62	4.83	7.54
Mangalore Refinery and Petrochemicals Ltd	Oil & Gas – Refining & Marketing	16,465.67	95.60	6.20	5.89	61.76	2.82		3.66
Hindustan Copper Ltd	Mining – Copper	15,114.59	162.40	51.16	26.07	57.59	19.22	0.59	3.33
Cochin Shipyard Ltd	Shipbuilding	13,913.03	1,085.25	45.66	22.71	150.72	25.50	0.95	7.29
Ircon International Ltd	Construction & Engineering	13,251.87	144.85	17.32	28.40	268.58	12.35	2.13	5.82
RITES Ltd	Business Support Services	11,749.56	492.50	21.68	20.12	52.05	32.47	4.19	5.25
NBCC (India) Ltd	Construction & Engineering	10,467.00	58.50	39.25	0.00	88.71	4.45	0.93	3.56
BEML Ltd	Rail	9,671.31	2,318.20	61.24	30.63	56.65	6.97	0.43	4.92
Garden Reach Shipbuilders & Engineers Ltd	Shipbuilding	9,491.78	841.10	41.61		149.55	15.16	0.75	5.35
MMTC Ltd	Commodities Trading	8,677.50	58.40	5.55	16.43	71.26	6.84
Engineers India Ltd	Construction & Engineering	8,236.73	147.45	23.79	4.40	132.39	16.67	2.05	5.47
Mishra Dhatu Nigam Ltd	Metals – Diversified	7,642.54	408.70	48.91	28.52	100.34	31.69	0.82	4.77
Chennai Petroleum Corporation Ltd	Oil & Gas – Refining & Marketing	7,636.92	510.20	2.16	12.88	121.01	3.79	5.26	4.65
Railtel Corporation of India Ltd	Communication & Networking	7,070.27	223.90	37.40		118.23	26.79	1.16	10.00
Rashtriya Chemicals and Fertilizers Ltd	Fertilizers & Agro Chemicals	6,901.62	126.45	7.14	16.20	37.00	8.05	4.24	4.38
shipping corporation of India Ltd	Logistics	6,765.73	146.00	7.78	35.17	67.21	30.26	0.30	6.56
Moil Ltd	Mining – Manganese	4,356.62	222.10	17.39	6.67	49.26	36.66	1.72	5.22
National Fertilizers Ltd	Fertilizers & Agro Chemicals	3,529.71	72.90	7.70	13.83	56.61	5.44	3.88	2.48
India Tourism Development Corp Ltd	Tour & Travel Services	3,194.91	376.00	54.01	3.09	8.64	7.48	0.59
MSTC Ltd	Commodities Trading	2,825.15	430.85	11.68		70.74	18.17	3.74	3.38
Balmer Lawrie and Company Ltd	Conglomerates	2,637.73	153.80	15.35	4.23	38.81	12.54	4.86	5.28
Mahanagar Telephone Nigam Ltd	Telecom Services	2,038.05	31.90	-0.70	18.77	53.00	0.24		3.50

Note: Information in the above PSU stocks list is dated 1st October 2023.

What is PSU?

Public Sector Undertakings (PSUs) are companies where the government holds the majority of the stake.

Types of PSU companies

1. Central Public-Sector Enterprises (CPSE)

These companies are where the central government holds a stake of more than 15%. Such companies are further classified into strategic CPSEs and non-strategic CPSEs. Companies engaged in strategic sectors like defence (arms and ammunition, military aircraft, military hardware, and other related commodities), railways, atomic energy, and others are strategic CPSEs.

2. Public-Sector Banks (PSB)

Financial institutions in which the government or another public-sector bank holds more than 51% of the voting shares are called PSBs. Nifty PSU Bank represents the performance of PSBs.

List of PSBs in India

Name	Market Cap (Rs. in cr.)	Close Price (Rs.)	PE Ratio (%)	5Y CAGR (%)	1Y Return (%)	5Y Avg EBITDA Margin (%)	Dividend Yield (%)	Fundamental Score
State Bank of India	5,26,507.48	598.55	9.46	17.65	10.24	1.92	5.49	14.72
Bank of Baroda Ltd	1,08,934.74	213.95	7.31	16.55	9.33	2.62	5.64	67.87
Punjab National Bank	87,702.74	80.20	26.19	6.08	-0.89	0.82	5.60	129.80
Indian Overseas Bank	87,612.68	46.75	41.64	28.97			4.74	171.01
Union Bank of India Ltd	75,977.59	106.30	8.93	10.08	2.17	2.70	5.25	143.53
IDBI Bank Ltd	75,320.58	70.75	20.32	7.10	-13.80	1.43	4.65	76.21
Canara Bank Ltd	67,948.25	376.25	6.04	11.24	4.98	3.20	5.60	74.68
Indian Bank	51,548.81	423.55	9.25	13.25	7.74	2.08	7.04	118.27
UCO Bank	51,410.62	43.55	27.61	20.99	-7.50		5.15	270.64
Central Bank of India Ltd	43,665.13	51.30	26.01	4.51	-2.06		5.98	159.75
Bank of India Ltd	43,107.96	109.40	11.23	7.30	1.11	1.90	5.12	126.97
Bank of Maharashtra Ltd	33,282.46	47.65	12.78	33.83	-0.34	2.63	6.26	173.07
Punjab & Sind Bank	30,974.48	46.40	23.59	12.37	-6.33	1.05	4.00	195.54

Note: Information in the above PSU stocks list is dated 1st October 2023.

3. State-Level Public Entities (SLPE)

Companies where the state government or another SLPE holds more than 51% stake are called state-level public entities.

Types of CPSEs

Based on their financial autonomy, CPSEs are further classified into three types:

1. Maharatna stocks

There are 11 Maharatna companies in India. In the past, these entities have been Navratna companies. Maharatna companies enjoy the greatest financial and authoritative autonomy of the lot. They don’t have to seek the government’s approval for every decision. This reduces their dependency and hastens the decision-making process. It also aids their growth and helps them compete at a global level.

Maharatna companies enjoy the liberty of choosing their investments; they can invest 15% of their net worth. Since these companies operate on a larger scale, they have an investment ceiling of Rs. 5,000 cr.

List of Maharatna companies in India

1. Bharat Heavy Electricals Limited (BHEL)
2. Bharat Petroleum Corporation Limited (BPCL)
3. Coal India Limited (CIL)
4. Gas Authority of India Limited (GAIL)
5. Hindustan Petroleum Corporation Limited (HPCL)
6. Indian Oil Corporation Limited (IOCL)
7. NTPC Limited
8. Oil and Natural Gas Corporation Limited (ONGC)
9. Power Finance Corporation
10. Power Grid Corporation of India Limited (PGCIL)
11. Steel Authority of India Limited (SAIL)

2. Navratna stocks

Navratna companies have more operational flexibility and freedom compared to Miniratna companies. These companies will have enjoyed the status of a Miniratna company having four independent board members. This status gives companies complete autonomy.

Although Navratna companies can invest without the government’s approval, there are certain restrictions on the amount that can be invested. Such companies can invest up to Rs. 1,000 cr., or 15% of their net worth on a single project, or 30% of their net worth in the entire year, whichever is less. Together, these benefits have given Navratna companies financial freedom and have increased their efficiency and growth prospects.

List of Navratna companies

1. Bharat Electronics Limited (BEL)
2. Container Corporation of India Limited (CCIL)
3. Engineers India Limited (EIL)
4. Hindustan Aeronautics Limited (HAL)
5. Mahanagar Telephone Nigam Limited (MTNL)
6. National Aluminium Company Limited (NACL)
7. National Buildings Construction Corporation Limited (NBCC (India) Ltd)
8. Neyveli Lignite Corporation Limited (NLC India Ltd)
9. National Mineral Development Corporation (NMDC) Limited
10. Oil India Limited (OIL)
11. Rashtriya Ispat Nigam Limited
12. Rural Electrification Corporation Limited (RECL)
13. Shipping Corporation of India Limited (SCIL)

3. Miniratna stocks

There are 78 Miniratna companies in India. These companies are further divided into two categories – categories I and II. Miniratna status is given to companies that improve efficiency and competitiveness. Such companies are free to use funds based on predetermined limits. Miniratna category I companies can invest up to Rs. 500 cr. or a sum equal to their net worth, whichever is less.

On the other hand, Miniratna category II companies can invest Rs. 300 cr. or 50% of their net worth, whichever is lower. They don’t require prior approval from the government to make investments. This has opened up many opportunities for organisations, making way for expansion.

List of Miniratna category I companies

1. Airports Authority of India (AAI)

2. Antrix Corporation Limited

3. Balmer Lawrie and Co. Limited

4. Bharat Coking Coal Limited

5. Bharat Dynamics Limited

6. BEML Limited

7. Bharat Sanchar Nigam Limited (BSNL)

8. Braithwaite and Company Limited

9. Bridge and Roof Company (India) Limited

10. Central Warehousing Corporation

11. Central Coalfields Limited (CCL)

12. Central Mine Planning and Design Institute Limited (CMPDI)

13. Chennai Petroleum Corporation Limited (CPCL)

14. Cochin Shipyard Limited (CSL)

15. Cotton Corporation of India Ltd

16. EdCIL (India) Limited

17. Garden Reach Shipbuilders and Engineers Limited (GRSE)

18. Goa Shipyard Limited

19. Hindustan Copper Limited

20. HLL Lifecare Limited

21. Hindustan Newsprint Limited

22. Hindustan Paper Corporation Limited

23. Housing and Urban Development Corporation Limited

24. HSCC (India) Limited

25. India Tourism Development Corporation Limited

26. Indian Rare Earths Limited

27. Indian Railway Catering and Tourism Corporation Limited (IRCTC)

28. Indian Railway Finance Corporation Limited (IRFC)

29. Indian Renewable Energy Development Agency Limited

30. India Trade Promotion Organization 

31. IRCON International Limited

32. KIOCL Limited

33. Mazagon Dock Shipbuilders Limited

34. Mahanadi Coalfields Limited

35. MOIL Limited

36. Mangalore Refinery and Petrochemical Limited (MRPL)

37. Mineral Exploration Corporation Limited

38. Mishra Dhatu Nigam Limited

39. MMTC Limited

40. MSTC Limited

41. National Fertilizers Limited

42. National Projects Construction Corporation Limited

43. National Small Industries Corporation Limited

44. National Seeds Corporation

45. NHPC Limited

46. Northern Coalfields Limited

47. North Eastern Electric Power Corporation Limited

48. Numaligarh Refinery Limited

49. ONGC Videsh Limited

50. Pawan Hans Helicopters Limited

51. Projects and Development India Limited

52. Railtel Corporation of India Limited

53. Rail Vikas Nigam Limited

54. Rashtriya Chemicals and Fertilizers Limited

55. RITES Limited

56. SJVN Limited

57. Security Printing and Minting Corporation of India Limited

58. South Eastern Coalfields Limited

59. Telecommunications Consultants India Limited

60. THDC India Limited

61. Western Coalfields Limited

62. WAPCOS Limited

Miniratna category II companies

63. Artificial Limbs Manufacturing Corporation of India

64. Bharat Pumps and Compressors Limited

65. Broadcast Engineering Consultants India Limited

66. Central Railside Warehouse Company Limited

67. Engineering Projects (India) Limited

68. FCI Aravali Gypsum and Minerals India Limited

69. Ferro Scrap Nigam Limited

70. HMT (International) Limited

71. Indian Medicines and Pharmaceuticals Corporation Limited

72. MECON Limited

73. National Film Development Corporation Limited

74. Rajasthan Electronics and Instruments Limited

Things to know before investing in PSU stocks

• The government has set disinvestment targets to reduce their stake in PSUs and encourage private participation.
• Since PSU stocks are closely related to the core sectors of the economy, in addition to the regular key metrics, tracking economic indicators such as the GDP, employment generation, and others can help measure the performance of PSU stocks in a better way.
• PSU stocks in India are relatively stable compared to private-sector peers. As these are government-backed, they are not allowed to fail in most cases.
• These stocks are known to offer attractive dividends. However, they are slow movers when it comes to capital appreciation.

As in any case, you should only invest in PSU stocks after analysing them thoroughly. Use Tickertape’s Stock Pages to access a wealth of information about PSU companies. You can access details on financials, holdings, and corporate actions to make data-backed investment decisions.

Frequently Asked Questions (FAQs)

What is PSU stock?

Public Sector Undertakings (PSUs) are companies where the government holds most of the stake. Stocks of such companies are called PSU stocks.

Do PSU stocks have a long-term future?

Yes, PSU stocks have a long-term future as they are government-backed. Most of the time, these companies are not allowed to fail.

Is investing in PSUs a wise idea?

It depends on personal factors such as investment objective, risk tolerance, and return expectation. PSUs are known to be slow-growing but stable. They are known to offer attractive dividends; however, the capital appreciation is typically lesser than growth stocks. If these align with your preferences, you can invest in PSUs after thoroughly analysing them.

How to check PSU share price?

Checking PSU share price is no different than the usual stocks. One of the ways to do this is by visiting the respective Stock Page on Tickertape. In addition to a live price chart, the Stock Pages have a wealth of information on the PSU’s financials, price forecast, corporate actions, and so on.   

How to find PSU bank stocks?

Step 1: Go to Tickertape Stock Screener
Step 2: Under ‘Sector’, select ‘Public banks’