Top PSU Stocks Under ₹100 in November 2024

As the stock market continues to evolve, public sector undertakings (PSUs) remain a popular choice for investors seeking stability, steady growth, and attractive dividend yields. PSUs have long been a reliable investment option for those looking for stability and long-term growth potential. These government-backed companies offer investors an opportunity to tap into essential sectors such as energy, banking, transportation, and infrastructure, often providing steady returns and attractive dividends.

As of November 2024, there are several PSU stocks priced under ₹100. We will explore some of the top PSU stocks to consider this month, highlighting their financial health, market performance, and potential for future growth. 

Best PSU Stocks In India Under ₹100 In November 2024

Note: The list of the top 8 PSU stocks in India for November 2024, is selected based on 5-yr CAGR. The data is as of November 13, 2024.

Overview of Top 5 PSU Stocks in India in November 2024

• Indian Overseas Bank

Indian Overseas Bank (IOB) is a major public sector bank in India, founded on February 10, 1937, by Shri M. Ct. M. Chidambaram Chettyar. IOB was created to extend its reach globally and cater to the growing needs of foreign trade and exchange services. Indian Overseas Bank has a solid reputation for its expertise in international banking and trade-related services. It provides specialised financial products, including foreign currency accounts, remittances, and trade finance. Indian Overseas Bank share price closed 4.12% lower at ₹49.36 on NSE.

In the quarter ending September 2024, the PSU bank’s net profit increased to ₹777 crore as against ₹625 crore in the same quarter a year ago.

Key metrics: 

• Return on equity (ROE): 10.16%
• Net Income: ₹2,665.660
• Bank of Maharashtra Ltd

Bank of Maharashtra, established in 1935 and headquartered in Pune, India, is one of the leading public sector banks in the country. It offers a wide range of banking products and services, including retail banking, corporate banking, and treasury operations. The bank’s services cater to both individual customers and businesses, providing products like savings accounts, loans, deposits, and insurance. Bank of Maharashtra share price closed 4.06% lower at ₹50.38 on NSE.

For the quarter ended September 2024, the PSU bank’s net profit rose to ₹1,327 crore from ₹920 crore in the year-ago period.

Key metrics: 

• Return on equity (ROE): 22.84%
• Net Income: ₹4,071.78 
• Dividend Yield: 2.45%
• MMTC Ltd

MMTC Limited (Metals and Minerals Trading Corporation of India) is a prominent public sector undertaking in India, established in 1963. The company specialises in the import and export of a wide range of commodities, including metals, minerals, and various industrial products. MMTC plays a vital role in India’s foreign trade, with a significant presence in trading precious metals like gold and silver, as well as other non-ferrous metals. In addition to its core business of trading metals, MMTC is also involved in importing essential commodities such as coal, edible oils, and fertilizers, which are crucial for the country’s industrial needs.MMTC share price closed 4.31% lower at ₹76 on NSE.

For the quarter ended September 2024, the company’s net profit stood at ₹48.05 crore as against ₹52.04 crore in the preceding quarter. 

Key metrics: 

• Return on equity (ROE): 12.65%
• Net Income: ₹192.18
• NHPC Ltd

NHPC Limited (National Hydroelectric Power Corporation) is a leading public sector enterprise in India, specialising in the generation of hydroelectric power. Established in 1975, NHPC’s primary focus is the development, operation, and maintenance of hydroelectric power projects, although it has also diversified into other forms of renewable energy, including solar and wind power. With a robust portfolio of power plants across India, NHPC contributes significantly to the national grid, helping to meet the country’s growing energy demands. NHPC share price closed 3.58% lower at ₹77.90 on NSE.

For the quarter ended September 2024, the company’s consolidated net profit stood at ₹909 crore ₹1546 crore in the preceding quarter. 

Key metrics: 

• Return on equity (ROE): 8.46%
• Net Income: ₹3,624.420
• Dividend Yield: 2.35%
• NBCC (India) Ltd

NBCC (India) Ltd. founded in 1960, the company specialises in construction, project management, and real estate development. NBCC is recognised for its range of services, including civil engineering, building construction, and infrastructure development. NBCC is also involved in redevelopment projects, urban infrastructure, and the management of projects in sectors such as health, education, and transport. NBCC share price closed 4.24% lower at ₹89.50 on NSE.

For the quarter ended September 2024, the company registered a net profit of ₹125.1 crore from ₹81.9 crore in the preceding quarter. 

Key metrics: 

• Return on equity (ROE): 17.07%
• Net Income: ₹401.57
• Dividend Yield: 0.4%

Conclusion

Investing in Public Sector Undertaking (PSU) stocks presents a unique set of opportunities, along with its share of risks. Investors need to evaluate their risk tolerance, financial objectives, and investment horizon before committing to PSU stocks. Seeking advice from a financial advisor can be a smart step in developing a strategy that is tailored to individual goals, ensuring a well-balanced and informed approach to investing in the PSU sector.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.