Buying the best PSU stocks can be a very profitable bet for anyone who invests in them. PSU stocks are doing well in India currently, and investors love it. But with the volatile stock market, you need to be smart about how you approach purchases.
PSU companies consistently and regularly pay returns to their shareholders. They constitute a great form of passive income and are intricately linked to the economy’s major industries.
There are many PSUs in India that offer good investment opportunities. However, picking the best one to invest in can be tricky. Here is an overview of the best PSU stocks to buy in India.
What are PSU Stocks?
Public Sector Undertakings (PSUs) are companies owned and operated by the government. These companies are typically large and essential to the economy and often monopolise particular industries or products.
PSU stocks are a type of stock that is available for purchase by the public, and they can be a good investment for those looking to diversify their portfolios. PSUs typically have solid financials and are less volatile than other stocks, making them a safe and reliable investment.
List of Top PSU Stocks in India
While many other PSUs offer good investment opportunities, these few are among the best in size, profitability, and growth potential. Here is a PSU stocks list that you can consider!
State Bank of India (SBI)
SBI, the largest bank in terms of assets and activity, is a bank of structural importance and holds a privileged status in the Indian banking industry. The bank runs as a reliable and well-established brand through its broad PAN India network of branches and global exposure. A sizable and diverse deposit base, underpinned by a significant component of reduced current accounts and savings account (CASA) deposits, gives the SBI group strong resource profile stability.
Want to Invest in SBI? Check out the Share Price of SBI on SMC
Oil & Natural Gas Corporation Ltd.(ONGC)
The Oil and Natural Gas Corporation (ONGC) is one of the largest PSUs in India and is also one of the most profitable. It is a leading player in the oil and gas industry and is well-positioned to benefit from India’s growing demand for energy. In addition to providing a growth-friendly environment, the firm offers a compensation package that, in terms of Cost-to-Company, is comparable to the top in the Indian industry, making it the finest PSU to work for.
The company today has operations worldwide and also engages in some downstream services (i.e., refinement, processing, and marketing) related to crude oil processing.
Want to Invest in ONGC? Check out the Share Price of ONGC on SMC
Steel Authority of India Limited (SAIL)
Located in New Delhi, India, Steel Authority of India Limited (SAIL) is a top PSU stock to buy in India for several reasons. First, the company has a strong history of profitability and has been consistently profitable for the last several years. Second, SAIL has a strong market position in the Indian steel industry and is one of the largest steel producers in the country. Third, the company has a strong balance sheet with low debt levels and a strong cash position. The company is well-positioned to benefit from the growing demand for steel in India.
Want to Invest in SAIL? Check out the Share Price of SAIL on SMC
PSU stocks are always a good investment option in India, and NTPC Limited is another one of the top PSU stocks to buy in India. The company is a Maharatna PSU, the largest power generation company in India. NTPC Limited has a strong presence in thermal and hydropower generation segments and a diversified fuel mix. The business consistently generates profits and has a solid balance sheet with a low debt-to-equity ratio. It also has a good dividend payout history. Hence, NTPC Limited is a good option for investors looking for a safe and profitable investment in the Indian power sector.
Want to Invest in NTPC Limited? Check out the Share Price of NTPC Limited on SMC
Power Grid Corporation of India Limited
Power Grid Corporation of India Limited (PGCIL) is a Maharatna company and the most extensive electricity transmission utility in India. PGCIL is a central transmission utility (CTU) and public sector undertaking (PSU) under the Ministry of Power. The company uses electricity transmission through its transmission lines and grid substations.PGCIL has been consistently ranked as one of the top-performing PSUs in India. The Government of India awarded the company the Maharatna status in 2013. PGCIL has also been ranked as the top stock to buy in India by various rating agencies and research firms.
Want to Invest in Power Grid Corporation of India Limited (PGCIL)? Check out the Share Price of PGCIL on SMC
PSU companies or public sector undertakings, have effectively established a solid industrial basis in the nation and are closely correlated with the main economic sectors. The GOI owns the bulk of these businesses.
The nation-building process depends heavily on the vital economic sectors, which also steer the economy correctly. These primary industries include finance, capital goods, metal, coal, infrastructure, oil, and electricity.
Before investing, keep in mind that you must conduct qualitative and statistical research on the industry and the company. Things are constantly changing. Therefore, making decisions based on the most recent facts is critical. We hope you find our PSU stocks list helpful!
Disclaimer: The provided information is solely for educational purposes. Investments in the stock market are prone to risk; thoroughly read all relevant documents or consult an expert before investing.