Introduction
Share prices of public sector undertakings (PSU) have outperformed most other sectors over the past 12 to 18 months. The government has concentrated on improving the efficiency of most of these companies. These companies are beneficiaries of the government’s aggressive capital expenditure plan. That has helped these companies to boost growth and profits.
Let's take a look at the top 7 PSUs in India that are experiencing remarkable growth and exceeding the benchmark Nifty.
Overview of the 7 Best PSU Stocks in India (based on Analyst Ratings and Market Capitalization)
Here, we have presented a brief overview of the PSU stocks in India based on analyst ratings and market capitalization.
Oil and Natural Gas Corporation
Oil and Natural Gas Corporation, or the ONGC, was established in 1993 and is a top PSU in India that's primarily engaged in the exploration and production of oil. It is a leading natural gas and crude oil company dealing in the exploration, development, and production of crude oil, natural gas, and other petroleum products.
A few of its key subsidiaries are Mangalore Refinery and Petrochemicals Limited, ONGC Videsh Limited, Hindustan Petroleum Corporation Limited, Petronet MHB Limited, HPCL Biofuels Limited, etc.
NTPC
An important provider of electricity in India is National Thermal Power Corporation, or NTPC.
Founded in 1975, it has since then actively engaged in the generation and sale of power to State Power Utilities.
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NTPC has multiple power stations that are spread all across the country. From power generation to energy trading, project management, and oil and gas exploration, this PSU has always been playing a crucial role in the energy domain for quite a few years now.
Coal India Ltd
Coal India Ltd, one of the primary backbones of the Indian economy, was founded in 1975. It is mainly involved in coal mining and is spread across eight states in India. This company has more than 300+ mines, including opencast, mixed, and underground mines.
It is a Maharatna company that also runs the Indian Institute of Coal Management, a corporate training institute in India.
Coal India Ltd also has multiple subsidiaries. Some of the most renowned ones include Bharat Coking Coal Limited, Mahanadi Coalfields Limited, Central Coalfields Limited, etc.
Power Grid Corp Ltd
Power Grid Corporation of India Limited is a Maharatna PSU for the government of India. It was founded on 23rd October 1989 and is a Listed Company, wherein 51.34% of the total shares are held by the Indian Government, and the remaining 48.66% is held by public and institutional investors.
It is a power transmission company that is primarily engaged in the planning, implementation, operation, and maintenance of Inter-State Transmission Systems, consultancy, and telecommunication services.
Indian Railway Finance Corp
Indian Railway Finance Corp was founded in 1986. It is a public sector enterprise that is vested with the responsibility of looking after the finances of the Indian Railways.
The main business of IRFC is to borrow funds from the financial markets to finance the development of assets. The Indian Railways then receives financial leases for these assets.
NHPC
National Hydroelectric Power Corporation, commonly known as NHPC, was established in 1975. It is engaged in the generation and sale of bulk power. Some of the primary business activities of NHPC include consultancy assignment services, construction contracts, project management, power trading, and so on.
Some of the subsidiary companies of NHPC are Chenab Valley Power Projects Private Limited, Loktak Downstream Hydroelectric Corporation Limited, Jalpower Corporation Limited, etc.
Bharat Petroleum Corporation Ltd
Bharat Petroleum Corporation Limited is a Maharatna public sector enterprise that comes under the Ministry of Petroleum and Natural Gas, and operates around 21,000 fuel stations all over India. BPCL was established in the early 1900s as an oil and gas company, and ever since then, it has evolved into a Fortune 500 Conglomerate.
Final Words
PSU stocks are not merely investment instruments; they're the building blocks of India's growth. Whenever you invest in these PSUs, you actively engage yourself in the development and growth of this nation. However, that's not all. You also gain from their significant market presence and performance.
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