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.

Listed PSU stocks in India

NameSub-SectorMarket Cap (Rs. in cr.)Close Price (Rs.)5Y CAGR (%)
Oil and Natural Gas Corporation LtdOil & Gas – Exploration & Production1,70,399.88135.45-5.62
NTPC LtdPower Generation1,59,413.19164.41.51
Power Grid Corporation of India LtdPower Transmission & Distribution1,52,797.29219.057.16
Coal India LtdMining – Coal1,41,403.80229.45-3.47
Indian Oil Corporation LtdOil & Gas – Refining & Marketing98,919.2770.05-11.90
Hindustan Aeronautics LtdAerospace & Defense Equipments88,759.812,654.4
Bharat Electronics LtdElectronic Equipments77,337.46105.812.33
Bharat Petroleum Corporation LtdOil & Gas – Refining & Marketing67,311.91310.3-9.51
GAIL (India) LtdGas Distribution58,945.7689.65-4.85
Indian Railway Catering and Tourism Corporation LtdOnline Services57,244715.55
Container Corporation of India LtdLogistics44,679.55733.36.20
NHPC LtdRenewable Energy41,887.7941.78.80
Indian Railway Finance Corp LtdSpecialized Finance36,722.5028.1
NMDC LtdMining – Iron Ore33,775.23115.255.26
Steel Authority of India LtdIron & Steel33,746.3981.7-0.30
Power Finance Corporation LtdSpecialized Finance33,014.21125.05-0.48
Hindustan Petroleum Corp LtdOil & Gas – Refining & Marketing30,541.34215.3-12.45
REC LimitedSpecialized Finance26,240.0799.65-3.95
Bharat Heavy Electricals LtdHeavy Electrical Equipments25,088.2672.05-3.80
Oil India LtdOil & Gas – Exploration & Production21,639.30199.55-3.32
Bharat Dynamics LtdAerospace & Defense Equipments17,118.46875934
Mazagon Dock Shipbuilders LtdShipbuilding15,606.77773.8
SJVN LtdRenewable Energy14,520.5936.951.14
National Aluminium Co LtdMetals – Aluminium13,554.3473.8-2.29
Rail Vikas Nigam LtdSpecialized Finance12,885.4261.840.97
KIOCL LtdIron & Steel11,422.68187.95-15.52
NLC India LtdMetals – Diversified10,725.6377.35-5.92
Hindustan Copper LtdMining – Copper10,559.90109.22.10
Mangalore Refinery and Petrochemicals LtdOil & Gas – Refining & Marketing9,280.0152.95-15.94
Housing and Urban Development Corporation LtdSpecialised Finance9,258.7846.25-10.69
RITES LtdBusiness Support Services9,132.67380.05
Cochin Shipyard LtdShipbuilding8,046.98611.751.29
NBCC (India) LtdConstruction & Engineering6,70537.25-22.75
BEML LtdRail6,198.781488.52.73
Shipping Corporation of India LtdLogistics6,032.09129.56.79
Rashtriya Chemicals and Fertilizers LtdFertilizers & Agro Chemicals5,701.69103.352.23
Ircon International LtdConstruction & Engineering5,633.6859.9
Garden Reach Shipbuilders and Engineers LtdShipbuilding5,452.10475.95
MMTC LtdCommodities Trading5,362.535.75-7.46
Engineers India LtdConstruction & Engineering4,327.7277-15.99
Railtel Corporation of India LtdCommunication & Networking4,276.50133.25
Mishra Dhatu Nigam LtdMetals – Diversified4,162.69222.2
Moil LtdMining – Manganese3,161.14155.35-9.16
Chennai Petroleum Corporation LtdOil & Gas – Refining & Marketing2,887.39193.9-14.19
India Tourism Development Corp LtdTour & Travel Services2,832.96330.3-8.73
National Fertilizers LtdFertilizers & Agro Chemicals2,514.2151.25-3.76
Balmer Lawrie and Company LtdConglomerates2,022.97118.3-7.68
MSTC LtdCommodities Trading2,003.93284.65
Mahanagar Telephone Nigam LtdTelecom Services1,341.921.3-0.23

What is PSU?

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

Types of PSU companies

  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.

  1. 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

NameMarket Cap (Rs. in cr.)Close Price (Rs.)PE Ratio (%)5Y CAGR (%)
State Bank of India5,33,781.02598.115.0812.58
Bank of Maharashtra Ltd19,383.8228.816.801.640
Indian Overseas Bank44,326.1523.4525.93-0.58
Bank of Baroda Ltd83,724.35161.910.66-2.13
IDBI Bank Ltd53,600.7249.8521.15-3.86
Canara Bank Ltd56,954.61313.959.29-4.39
Indian Bank33,452.54268.68.07-8.10
UCO Bank22,297.8618.6523.11-10.29
Union Bank of India Ltd52,046.6076.159.88-14.65
Punjab & Sind Bank14,368.9021.213.82-15.44
Bank of India Ltd31,638.4977.19.05-17.48
Central Bank of India Ltd22,353.4125.7520.77-20.49
Punjab National Bank52,412.4347.613.57-23.88

Note: Information in the above PSU stocks list is dated 22nd November 2022.

  1. 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)
  1. 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)
  1. 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’

Aradhana Gotur
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