Public Sector Undertakings (PSUs) are an integral part of the Indian economy, representing government ownership in various industries ranging from oil and gas to banking and telecommunications. For investors looking to diversify their portfolios, PSU stocks can offer unique opportunities and benefits. In this article, we will explore the best PSU stocks in India in October 2024.
| Name | Market Cap (₹ in crore) | 5Y CAGR (%) | Net Margin (%) |
| Power Grid Corporation of India Ltd | 3,28,171.81 | 25.80 | 33.13 |
| NHPC Ltd | 95,377.61 | 33.61 | 30.97 |
| REC Limited | 1,46,012.27 | 43.12 | 29.74 |
| Indian Renewable Energy Development Agency Limited | 63,130.22 | – | 25.22 |
| Coal India Ltd | 3,14,391.59 | 20.61 | 24.82 |
Note: The best PSU stocks list given here has been sorted on the basis of 5Y CAGR as of October 01, 2024.
Power Grid Corporation of India Limited is a Maharatna CPSU and India’s largest electric power transmission company. The company moves large blocks of power from the central generating agencies and areas that have surplus power to load centres within and across regions. During Q1FY25, the company has emerged as the L1 bidder in three ISTS TBCB projects up to June with a levelised tariff of ₹4,172 crore.
Key metrics:
NHPC, a Mini Ratna category I public sector utility, is the Government of India’s flagship hydroelectric generation company. The company is primarily involved in the generation and sale of bulk power to various Power Utilities. During Q1 FY25, NHPC signed a Memorandum of Understanding (MOU) with M/s Ocean Sun, a Norwegian company specialising in Floating Solar technology. This MOU marks a crucial step towards fostering technological collaboration.
Key metrics:
REC is a Central Public Sector Undertaking under the Ministry of Power involved in financing projects in the complete power sector value chain from generation to distribution. The company’s
total portfolio of infrastructure logistics is about 12% of its total assets under management. Going
forward, the company believes that it may go up to 20% by the end of 2030.
Key metrics:
Indian Renewable Energy Development Agency Ltd was incorporated as a fully owned Govt. of India enterprise under the administrative control of the MNRE. The company was established for the promotion, development and commercialisation of new and renewable sources of energy and provides financial assistance to energy efficiency and conservation projects. The loan disbursed in FY 24 reached ~₹25,089.04 Crore, representing a 15.94% increase over the loan disbursed in FY 21 (~₹21,639.21 Crore), which is the largest sum ever.
Key metrics:
Coal India Ltd is mainly engaged in the mining and production of Coal and also operates Coal washeries. As of Q1 FY25, CIL operates 131 underground mines and employs around 36.73 % of the workforce with a 3.24% share in total production. Production from 19 Underground Mines has been suspended in a Phased manner (from 2020-21 to 2023-24).
Key metrics:
Investing in PSU stocks in India can be a rewarding venture, especially for those seeking stability and reliable returns. While there are risks involved, careful research and a diversified approach can help investors tap into the potential of these government-backed entities. Also, there are PSU stocks apart from the list mentioned above. It is necessary to do research before investing in PSU stocks.
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.
Author:
...Know More
We're Live on WhatsApp! Join our channel for market insights & updates
Get the link to download the App
