In this article, I will discuss the best PSU stocks in India that have shown consistent growth and strong financial performance.
- Key Points & Best PSU Stocks In India List
- 10 Best PSU Stocks In India
- 1.Bank Of Baroda
- Bank of Baroda – Key Details
- 2.Bharat Electronics Ltd
- Bharat Electronics Ltd – Key Details
- 3.Coal India Ltd
- Coal India Ltd – Key Details
- 4.Cochin Shipyard Ltd
- Cochin Shipyard Ltd – Key Details
- 5.GAIL (India) Ltd
- GAIL (India) Ltd – Key Details
- 6.Hindustan Aeronautics Ltd
- Hindustan Aeronautics Ltd – Key Details
- 7.Indian Oil Corporation Ltd
- Indian Oil Corporation Ltd – Key Details
- 8.NMDC Ltd
- NMDC Ltd – Key Details
- 9.NTPC Ltd
- NTPC Ltd – Key Details
- 10.Punjab National Bank
- Punjab National Bank – Key Details
- Conclusion
Public Sector Undertakings (PSUs) are integral to India’s economy, offering stability and steady returns. These stocks are backed by the government and offer excellent opportunities for long-term investors looking to diversify their portfolios.
Key Points & Best PSU Stocks In India List
| Company | Key Points |
|---|---|
| Bank of Baroda | Leading public sector bank, strong NPA management, growing digital services. |
| Bharat Electronics Ltd. | Defense electronics major, strong order book, consistent revenue growth. |
| Coal India Ltd. | Largest coal producer, high dividend yield, government-backed. |
| Cochin Shipyard Ltd. | Major shipbuilding PSU, defense contracts, expansion plans. |
| GAIL (India) Ltd. | India’s largest gas distributor, expanding pipeline network, stable profitability. |
| Hindustan Aeronautics Ltd. | Defense PSU, strong order inflow, key role in India’s aviation sector. |
| Indian Oil Corporation Ltd. | Largest oil refining and marketing company, steady dividends, government support. |
| NMDC Ltd. | Leading iron ore producer, low-cost operations, strong financials. |
| NTPC Ltd. | India’s largest power producer, renewable energy expansion, stable revenue. |
| Punjab National Bank | Leading PSU bank, improving asset quality, focus on digital banking. |
10 Best PSU Stocks In India
1.Bank Of Baroda
Bank of Baroda the third largest state managed bank in India, wants to focus on loan book expansion and branch network development with an approximate increment of 500 new branches in the next five years.
The deposit market share target is, hence, set at 13% with Bank of Baroda capturing 6% of the retail loan market by FY2025-26. Observers believe that these goals will positively impact stock performance, setting its price target at ₹310 with a 15% increase.
Bank of Baroda – Key Details
| Category | Details |
|---|---|
| Industry | Banking and Financial Services |
| Market Cap | ₹1.2+ lakh crore (approx.) |
| Stock Performance | Strong growth with steady returns |
| Revenue (FY2024) | ₹1.2+ lakh crore |
| Net Profit (FY2024) | ₹14,000+ crore |
| NPA Management | Improved asset quality, lower NPAs |
| Dividend Yield | Around 2-3% |
| Growth Drivers | Retail loan expansion, digital banking |
| Outlook | Positive, with plans for expansion |
2.Bharat Electronics Ltd
Bharat Electronics Limited (BEL), one of India’s largest defense electronics firms, has shown sustained excellent financial performance.
In Q2 FY 2024-25, profitability further improved as net profit reached ₹1,092.45 crore, which is a growth of 38 percent year on year, while revenue also grew by 15 percent reaching ₹4,583 crore.
Market analysts are positive about BEL’s prospects, as its target prices are between ₹345 and ₹390 owing to the company’s robust order book and pivotal position in the modernization of defense.
Bharat Electronics Ltd – Key Details
| Category | Details |
|---|---|
| Industry | Defense and Electronics |
| Market Cap | ₹1+ lakh crore (approx.) |
| Revenue (FY2024) | ₹4,583 crore (Q2 FY2024) |
| Net Profit (FY2024) | ₹1,092 crore (Q2 FY2024) |
| Order Book | ₹65,356 crore (as of Dec 2024) |
| Dividend Yield | Around 1.5-2% |
| Growth Drivers | Defense contracts, R&D investments |
| Outlook | Positive, driven by defense demand |
3.Coal India Ltd
Coal India Limited (CIL) remains the largest provider of coal across the globe which makes it the world’s top coal producer.
Within the past year alone, the company’s stock has increased by 73%. In the last financial year, CIL announced a dividend of ₹24.25 which gave a yield of 6.2% when the share price was put at ₹387.
Other firms expect more growth, boasting target prices between ₹430 and ₹450. With CIL emphasizing on the volume growth and electronic auction sales they are in a position to fulfill the escalating demand in India’s power sector.
Coal India Ltd – Key Details
| Category | Details |
|---|---|
| Industry | Coal Mining and Production |
| Market Cap | ₹2+ lakh crore (approx.) |
| Revenue (FY2024) | ₹36,000+ crore (Q3 FY2024) |
| Net Profit (FY2024) | ₹8,640 crore (Q3 FY2024) |
| Dividend Yield | Around 6-7% |
| Production (FY2024) | 703 million tonnes (target met) |
| Growth Drivers | Rising power demand, e-auction sales |
| Outlook | Positive, steady growth potential |
4.Cochin Shipyard Ltd
Cochin Shipyard Limited (CSL), one of the leading shipbuilding Public Sector Undertakings (PSUs) in India, is performing exceptionally well.
In Q1 FY2024-25 CSL’s consolidated net profit was reported to be ₹174.24 crore which is an increase of 76.62% per cent YoY, while sales grew by 62.12% YoY to ₹771.47 crore.
Moreover, in FY 2024-2025 Q3 CSL declared a revenue increase IPO to ₹1,148 crores which is an 8.6% increase from the previous quarter, although net profit peaked at a decline of 27.6% down to ₹177 crores.
CSL is also strengthening their promise with shareholders by allocating a dividend of ₹3.50 per share that let them further pursue their earnings goals.
Cochin Shipyard Ltd – Key Details
| Category | Details |
|---|---|
| Industry | Shipbuilding and Repair |
| Market Cap | ₹20,000+ crore (approx.) |
| Revenue (FY2024) | ₹1,148 crore (Q3 FY2024) |
| Net Profit (FY2024) | ₹177 crore (Q3 FY2024) |
| Order Book | ₹23,000+ crore (as of Dec 2024) |
| Dividend Yield | Around 1.5-2% |
| Growth Drivers | Defense contracts, ship repair orders |
| Outlook | Positive, driven by naval projects |
5.GAIL (India) Ltd
GAIL (India) Limited, the foremost distributor of natural gas in the country, has demonstrated steady growth. For 2nd Quarter of Financial Year 2024-25, the company registered a net profit of ₹2672 crore which is an 11% increase from last year with revenue of ₹32931 crore.
GAIL’s net profit went up further in 3rd Quarter of Financial Year 2024-25 to ₹4081.56 crore, an increase of 27.76%, and sales reached ₹36834.73 crore.
This result highlights GAIL’s importance in the energy sector and its attractiveness for investment among listed public sector companies.
GAIL (India) Ltd – Key Details
| Category | Details |
|---|---|
| Industry | Natural Gas Distribution & Transmission |
| Market Cap | ₹1.4+ lakh crore (approx.) |
| Revenue (FY2024) | ₹36,834 crore (Q3 FY2024) |
| Net Profit (FY2024) | ₹4,081 crore (Q3 FY2024) |
| Dividend Yield | Around 4-5% |
| Growth Drivers | Rising gas demand, pipeline expansion |
| Outlook | Positive, driven by energy sector growth |
6.Hindustan Aeronautics Ltd
India’s aerospace and defense giant, Hindustan Aeronautics Limited (HAL), earned a record revenue of ₹29,810 crore in FY2023-24 which is an eleven percent increase from the previous year.
HAL’s net profit in Q3 FY2024-25 increased by 14% reaching ₹1,440 crore, fueled by the aircraft’s demand from the defense ministry.
HAL’s order book is over ₹94,000 crore which along with its strong contributions and partnerships with other businesses makes it one of the most important public sector enterprises in India.
Hindustan Aeronautics Ltd – Key Details
| Category | Details |
|---|---|
| Industry | Aerospace and Defense |
| Market Cap | ₹2+ lakh crore (approx.) |
| Revenue (FY2024) | ₹29,810 crore |
| Net Profit (FY2024) | ₹1,440 crore (Q3 FY2024) |
| Order Book | ₹94,000+ crore (as of Dec 2024) |
| Dividend Yield | Around 1-2% |
| Growth Drivers | Defense contracts, aircraft production |
| Outlook | Positive, backed by strong order book |
7.Indian Oil Corporation Ltd
Indian Oil Corporation (IOC), the largest refiner in India, has faced challenges of reduced refining margins and under-recoveries from the sale of LPG, leading to a staggering 98.6% reduction in net profit for Q2 FY2024-25.
The corporations estimated profit dropped from ₹12,967.32 crore to ₹180.01 crore. Regardless of these difficulties, IOC continues to hold a commanding market share in the Indian economy. As well, IOC has kept it’s foothold in the country’s energy domain.
Indian Oil Corporation Ltd – Key Details
| Category | Details |
|---|---|
| Industry | Oil Refining and Marketing |
| Market Cap | ₹2.3+ lakh crore (approx.) |
| Revenue (FY2024) | ₹32,931 crore (Q2 FY2024) |
| Net Profit (FY2024) | ₹180 crore (Q2 FY2024) |
| Dividend Yield | Around 4-5% |
| Growth Drivers | Rising fuel demand, refining capacity |
| Outlook | Stable, driven by domestic consumption |
8.NMDC Ltd
India’s foremost iron ore manufacturer, NMDC Limited, has crossed yet another milestone by producing 45.02 million tonnes and selling 44.48 million tonnes in FY2023-24. This production figure translates into a 10% growth while sales figure denotes a 16% growth over the preceding year’s sales figure.
The company reported a further growth of 21% in turnover reaching ₹21,294 crore while net profit screeched to ₹5,632 crore which is an increase of 2%. During Q3 FY2024-25, the consolidated net profit jumped by 26.82% to ₹1,881.96 crore alongside sales which also saw a rise of 21.40% to ₹6,567.83 crore.
NMDC Ltd – Key Details
| Category | Details |
|---|---|
| Industry | Mining and Iron Ore Production |
| Market Cap | ₹75,000+ crore (approx.) |
| Revenue (FY2024) | ₹6,567 crore (Q3 FY2024) |
| Net Profit (FY2024) | ₹1,882 crore (Q3 FY2024) |
| Production (FY2024) | 45.02 million tonnes |
| Dividend Yield | Around 5-6% |
| Growth Drivers | Higher iron ore demand, export growth |
| Outlook | Positive, driven by rising steel demand |
9.NTPC Ltd
As of FY2023-24, NTPC Limited, the top power producer in India, generated a whopping 422 billion units of electricity which is a 6 percent increase from last year.
During this period, the companies consolidated net profit also saw an increase of 24.6% and reached ₹21,332 crore.
In the first 3 quarters of FY2024-25, NTPC posted standalone profit after tax figures of ₹13,871 crore which was an increase of 11 percent year-on-year. Analysts predict that NTPC shares have a possible upside of 17 percent due to strong power demand and expansion into renewable energy.
NTPC Ltd – Key Details
| Category | Details |
|---|---|
| Industry | Power Generation |
| Market Cap | ₹3+ lakh crore (approx.) |
| Revenue (FY2024) | ₹36,834 crore (Q3 FY2024) |
| Net Profit (FY2024) | ₹4,081 crore (Q3 FY2024) |
| Electricity Generation | 422 billion units (FY2024) |
| Dividend Yield | Around 3-4% |
| Growth Drivers | Rising power demand, renewable expansion |
| Outlook | Positive, supported by clean energy push |
10.Punjab National Bank
The Punjab National Bank, which is the second largest public bank in India, reported a 171.4% increase in consolidated net profit for FY2023-24 to ₹8,329 crores. In Q3 FY2024-25, PNB’s standalone net profit increased YoY by 102.82% to ₹4,508.21 crores.
The bank’s GNPA ratio increased improved to 4.09% as of December 31, 2024 compared to 6.24% the previous year. These results demonstrate an increase in profitability and assets among PNB with reinforces his position among the best known public sector banks in India.
Punjab National Bank – Key Details
| Category | Details |
|---|---|
| Industry | Banking and Financial Services |
| Market Cap | ₹1.1+ lakh crore (approx.) |
| Revenue (FY2024) | ₹28,800+ crore (Q3 FY2024) |
| Net Profit (FY2024) | ₹4,508 crore (Q3 FY2024) |
| Gross NPA (Q3 FY2024) | 4.09% (improved from 6.24%) |
| Dividend Yield | Around 2-3% |
| Growth Drivers | Improved asset quality, loan growth |
| Outlook | Positive, backed by strong profitability |
Conclusion
To sum up, the best PSU stocks in India like NTPC, Coal India, GAIL, and Bank of Baroda have strong growth potential, stable dividends, and stability.
These stocks remain compelling for long term investors with increasing demand in energy, defense, and banking sectors.
Their consistent financial performance together with government support makes them a trustworthy options for portfolio diversification and steady returns.
