Last Updated on Nov 22, 2022 by Aradhana Gotur
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 is a PSU and its types. Also, check out several lists of PSU stocks based on important parameters.
Table of Contents
Listed PSU stocks in India
|Name||Sub-Sector||Market Cap (Rs. in cr.)||Close Price (Rs.)||5Y CAGR (%)|
|Oil and Natural Gas Corporation Ltd||Oil & Gas – Exploration & Production||1,70,399.88||135.45||-5.62|
|NTPC Ltd||Power Generation||1,59,413.19||164.4||1.51|
|Power Grid Corporation of India Ltd||Power Transmission & Distribution||1,52,797.29||219.05||7.16|
|Coal India Ltd||Mining – Coal||1,41,403.80||229.45||-3.47|
|Indian Oil Corporation Ltd||Oil & Gas – Refining & Marketing||98,919.27||70.05||-11.90|
|Hindustan Aeronautics Ltd||Aerospace & Defense Equipments||88,759.81||2,654.4||–|
|Bharat Electronics Ltd||Electronic Equipments||77,337.46||105.8||12.33|
|Bharat Petroleum Corporation Ltd||Oil & Gas – Refining & Marketing||67,311.91||310.3||-9.51|
|GAIL (India) Ltd||Gas Distribution||58,945.76||89.65||-4.85|
|Indian Railway Catering and Tourism Corporation Ltd||Online Services||57,244||715.55|
|Container Corporation of India Ltd||Logistics||44,679.55||733.3||6.20|
|NHPC Ltd||Renewable Energy||41,887.79||41.7||8.80|
|Indian Railway Finance Corp Ltd||Specialized Finance||36,722.50||28.1||–|
|NMDC Ltd||Mining – Iron Ore||33,775.23||115.25||5.26|
|Steel Authority of India Ltd||Iron & Steel||33,746.39||81.7||-0.30|
|Power Finance Corporation Ltd||Specialized Finance||33,014.21||125.05||-0.48|
|Hindustan Petroleum Corp Ltd||Oil & Gas – Refining & Marketing||30,541.34||215.3||-12.45|
|REC Limited||Specialized Finance||26,240.07||99.65||-3.95|
|Bharat Heavy Electricals Ltd||Heavy Electrical Equipments||25,088.26||72.05||-3.80|
|Oil India Ltd||Oil & Gas – Exploration & Production||21,639.30||199.55||-3.32|
|Bharat Dynamics Ltd||Aerospace & Defense Equipments||17,118.46875||934||–|
|Mazagon Dock Shipbuilders Ltd||Shipbuilding||15,606.77||773.8||–|
|SJVN Ltd||Renewable Energy||14,520.59||36.95||1.14|
|National Aluminium Co Ltd||Metals – Aluminium||13,554.34||73.8||-2.29|
|Rail Vikas Nigam Ltd||Specialized Finance||12,885.42||61.8||40.97|
|KIOCL Ltd||Iron & Steel||11,422.68||187.95||-15.52|
|NLC India Ltd||Metals – Diversified||10,725.63||77.35||-5.92|
|Hindustan Copper Ltd||Mining – Copper||10,559.90||109.2||2.10|
|Mangalore Refinery and Petrochemicals Ltd||Oil & Gas – Refining & Marketing||9,280.01||52.95||-15.94|
|Housing and Urban Development Corporation Ltd||Specialised Finance||9,258.78||46.25||-10.69|
|RITES Ltd||Business Support Services||9,132.67||380.05||–|
|Cochin Shipyard Ltd||Shipbuilding||8,046.98||611.75||1.29|
|NBCC (India) Ltd||Construction & Engineering||6,705||37.25||-22.75|
|Shipping Corporation of India Ltd||Logistics||6,032.09||129.5||6.79|
|Rashtriya Chemicals and Fertilizers Ltd||Fertilizers & Agro Chemicals||5,701.69||103.35||2.23|
|Ircon International Ltd||Construction & Engineering||5,633.68||59.9||–|
|Garden Reach Shipbuilders and Engineers Ltd||Shipbuilding||5,452.10||475.95||–|
|MMTC Ltd||Commodities Trading||5,362.5||35.75||-7.46|
|Engineers India Ltd||Construction & Engineering||4,327.72||77||-15.99|
|Railtel Corporation of India Ltd||Communication & Networking||4,276.50||133.25||–|
|Mishra Dhatu Nigam Ltd||Metals – Diversified||4,162.69||222.2||–|
|Moil Ltd||Mining – Manganese||3,161.14||155.35||-9.16|
|Chennai Petroleum Corporation Ltd||Oil & Gas – Refining & Marketing||2,887.39||193.9||-14.19|
|India Tourism Development Corp Ltd||Tour & Travel Services||2,832.96||330.3||-8.73|
|National Fertilizers Ltd||Fertilizers & Agro Chemicals||2,514.21||51.25||-3.76|
|Balmer Lawrie and Company Ltd||Conglomerates||2,022.97||118.3||-7.68|
|MSTC Ltd||Commodities Trading||2,003.93||284.65||–|
|Mahanagar Telephone Nigam Ltd||Telecom Services||1,341.9||21.3||-0.23|
What is PSU?
Public Sector Undertakings (PSUs) are companies where the government holds the majority of the stake.
Types of PSU companies
- 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.
- 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 (%)|
|State Bank of India||5,33,781.02||598.1||15.08||12.58|
|Bank of Maharashtra Ltd||19,383.82||28.8||16.80||1.640|
|Indian Overseas Bank||44,326.15||23.45||25.93||-0.58|
|Bank of Baroda Ltd||83,724.35||161.9||10.66||-2.13|
|IDBI Bank Ltd||53,600.72||49.85||21.15||-3.86|
|Canara Bank Ltd||56,954.61||313.95||9.29||-4.39|
|Union Bank of India Ltd||52,046.60||76.15||9.88||-14.65|
|Punjab & Sind Bank||14,368.90||21.2||13.82||-15.44|
|Bank of India Ltd||31,638.49||77.1||9.05||-17.48|
|Central Bank of India Ltd||22,353.41||25.75||20.77||-20.49|
|Punjab National Bank||52,412.43||47.6||13.57||-23.88|
Note: Information in the above PSU stocks list is dated 22nd November 2022.
- 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:
- 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
- Bharat Heavy Electricals Limited (BHEL)
- Bharat Petroleum Corporation Limited (BPCL)
- Coal India Limited (CIL)
- Gas Authority of India Limited (GAIL)
- Hindustan Petroleum Corporation Limited (HPCL)
- Indian Oil Corporation Limited (IOCL)
- NTPC Limited
- Oil and Natural Gas Corporation Limited (ONGC)
- Power Finance Corporation
- Power Grid Corporation of India Limited (PGCIL)
- Steel Authority of India Limited (SAIL)
- 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
- Bharat Electronics Limited (BEL)
- Container Corporation of India Limited (CCIL)
- Engineers India Limited (EIL)
- Hindustan Aeronautics Limited (HAL)
- Mahanagar Telephone Nigam Limited (MTNL)
- National Aluminium Company Limited (NACL)
- National Buildings Construction Corporation Limited (NBCC (India) Ltd)
- Neyveli Lignite Corporation Limited (NLC India Ltd)
- National Mineral Development Corporation (NMDC) Limited
- Oil India Limited (OIL)
- Rashtriya Ispat Nigam Limited
- Rural Electrification Corporation Limited (RECL)
- Shipping Corporation of India Limited (SCIL)
- 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?
Stocks of PSUs 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 banks stocks?
Step 1: Go to Tickertape Stock Screener
Step 2: Under ‘Sector’, select ‘Public banks’