When someone starts their investment journey and they wonder over this question, most of us come to one answer – PSU Stocks or Govt Stocks! This is mostly due to emotional security since these types of stocks are backed by Govt. Since it is quite a common question, we will help you to identify and prepare, some of the best PSU stocks list!
Public Sector Undertakings (PSUs) are closely linked to the economy and its various sectors, with the Government of India being the primary owner. Infrastructure, power, banking, healthcare, and other industries that support the growth of the Indian economy are all intimately related to PSUs. Several investors hold PSU equities in their stock portfolios.
Best PSU Stocks List At A Glance
To end your curiosity, below is the PSU stocks list at a glance. We will be talking about these stocks exclusively in this blog. But yes, as a supplementary read, we have included important factors you must consider before choosing any of them. So, stay attentive!
|Top PSU Stocks in India
|5 Year CAGR
|Oil and Natural Gas Corporation (ONGC)
|Bharat Petroleum Corporation Ltd.
|Bharat Heavy Electricals Ltd
|Coal India Limited
|Power Generation & Distribution
Quick Overview of the Best PSU Stocks
Here is a quick overview of stocks that we have mentioned in the above PSU stocks list.
1) Oil and Natural Gas Corporation (ONGC)
Among India’s biggest businesses for oil and gas exploration is Oil and Natural Gas Corporation. Because of its consistent dominance in both upstream and downstream activities, it is frequently regarded as one of the best PSU oil stocks.
ONGC has led its industry in producing, refining, processing, and marketing. Many stock traders have made it their preferred PSU investment because of its credibility.
2) Bharat Petroleum Corporation Limited.
Popular PSU stock Bharat Petroleum Corporation Ltd. (BPCL) is another one that’s frequently included in trading portfolios.
Its main activities are petroleum product distribution and refining. BPCL has expanded steadily throughout the years thanks to its significant position in the petroleum sector. Owing to its constantly changing landscape and quick growth, this business has drawn the attention of numerous investors.
3) Heavy Electricals Bharat Ltd.
Another PSU that has shown promise in the stock market is Bharat Heavy Electricals Ltd., or BHEL for short.
BHEL is a manufacturing and engineering firm that works mostly in the power, thermal, gas, hydro, and other related industries. Through its engineering, manufacturing, and several skilled services, the company has established a strong market position. Stock traders have bestowed many honors upon the corporation due to its resolute presence and credible performance.
4) Coal India Limited
Coal India Limited has had an outstanding performance and is frequently regarded as the greatest PSU firm in India. Since its founding in 1973, this mining and mineral refinery enterprise has demonstrated its strength.
Coal India Ltd. has produced noteworthy returns over the years due to its support from the government, near-monopoly dominance, and significant economic output.
5) NTPC Ltd.
India’s top electricity-producing and distribution business is National Thermal Electricity Corporation Limited (NTPC). This PSU has completely changed the power production sector since it was first introduced in 1975.
Owing to its steady revenue growth and growing footprint, NTPC has made a substantial contribution to the advancement of the Indian economy.
Points To Remember While Investing In PSU Stocks
While investing, or when you are taking your first step,
Even though government or PSU stocks are carefully monitored by officials, political agendas, the state of the market, outside pressures, and other factors occasionally cause these companies’ operations to falter.
Thus, it is imperative to examine how management plans, decides and acts in certain circumstances.
It is crucial to conduct a financial analysis of a PSU stock before investing. A company’s revenue, earnings, debt, and other factors should all be considered before adding it to your portfolio.
A company’s profitability tells us a lot about its stability and health as a financial institution. As a result, it ought to be examined first among other concerns.
A company’s financial performance is shown by several performance ratios. Therefore, to obtain a true picture of a company’s performance, you should maximize the use of the PB Ratio, PE Ratio, ROE Ratio, Dividend Payout Ratio, and more.
The most important thing to do before purchasing any PSU stock is to evaluate the company’s present and potential futures.
When reviewing, don’t forget to look at things like general performance, market share, competition, hazards, etc. You’ll gain a better understanding of the benefits and drawbacks of investing in government stocks after reading this.
Your Limit for Investing and Your Risk Appetite
Determining your risk tolerance and investment appetite is essential regardless of the PSU stock you wish to purchase.
Analyze which stock investment makes the most sense financially before thinking about including it in your portfolio.
A combination of qualities is necessary while investing in the stock market. To get the most out of your investment, you need to have the ideal balance of timing, strategy, risk tolerance, market research, and many other factors.
The performance of PSU stocks might change for a variety of reasons, including political, economic, and even environmental ones. Therefore, you should carefully consider it before including it in your financial portfolio.
Purchasing the top government stocks in India may be a wise decision for you, but only if it fits in with your near goals and investing objectives.