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Low Price PSU Stocks

The table below shows the Low Price PSU Stocks based on Market Cap and 1Y Return.

NameMarket Cap (₹ Cr)Close Price (₹)1-Year Return (%)
Oil and Natural Gas Corporation Ltd3,05,576.36243.49-11.18
Bharat Electronics Ltd2,15,226.32295.1527.69
Indian Oil Corporation Ltd1,89,189.55134.3-20.53
Indian Railway Finance Corp Ltd1,68,801.76129.48-8.78
Bharat Petroleum Corporation Ltd1,29,126.25298.351.2
Bank of Baroda Ltd1,25,262.15242.81-6.25
Gail (India) Ltd1,22,650.05186.99-8.14
Punjab National Bank1,14,078.2199.5-23.2
Union Bank of India Ltd96,400.10126.59-11.2
Canara Bank Ltd86,885.7496.02-17.71

Table of Contents

Introduction to Low Price PSU Stocks

Oil and Natural Gas Corporation Ltd

The Market Cap of Oil and Natural Gas Corporation Ltd is ₹3,05,576.36 crore. The stock’s 1-month return is 5.41%, while its 1-year return is -11.18%. It is currently 41.69% away from its 52-week high.
Oil and Natural Gas Corporation Ltd is India’s largest producer of crude oil and natural gas. The company plays a key role in meeting the country’s energy needs through exploration, production, and technology-driven operations.
It is focused on enhancing offshore and onshore reserves and adopting advanced drilling techniques. ONGC continues to ensure national energy security while expanding its presence in the global oil and gas sector.

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Bharat Electronics Ltd

The Market Cap of Bharat Electronics Ltd is ₹2,15,226.32 crore. The stock’s 1-month return is 4.97%, while its 1-year return is 27.69%. It is currently 15.37% away from its 52-week high.
Bharat Electronics Ltd is a government-owned company specialising in advanced electronics for defence and aerospace applications. It manufactures cutting-edge equipment for the Indian Armed Forces and allied security agencies.
The company is known for innovation and indigenisation in defence technology. BEL is committed to self-reliance in critical defence systems and continues to support the country’s strategic objectives through its solutions.

Indian Oil Corporation Ltd

The Market Cap of Indian Oil Corporation Ltd is ₹1,89,189.55 crore. The stock’s 1-month return is 8.06%, while its 1-year return is -20.53%. It is currently 38.47% away from its 52-week high.
Indian Oil Corporation Ltd is one of India’s largest integrated oil refining and marketing companies. It operates a vast network of fuel stations and pipelines, ensuring energy access across the country.
The company is actively transitioning towards sustainable fuels and green energy initiatives. Indian Oil is also involved in R&D for cleaner alternatives, reflecting its commitment to a low-carbon future.

Indian Railway Finance Corp Ltd

The Market Cap of Indian Railway Finance Corp Ltd is ₹1,68,801.76 crore. The stock’s 1-month return is 8.84%, while its 1-year return is -8.78%. It is currently 76.86% away from its 52-week high.
Indian Railway Finance Corp Ltd is a dedicated financial arm of the Indian Railways. It supports railway development by raising funds through market instruments and structured financing models.
The company ensures timely funding for rail infrastructure and modernisation projects. IRFC plays a pivotal role in enabling the expansion and electrification of the railway network across India.

Bharat Petroleum Corporation Ltd

The Market Cap of Bharat Petroleum Corporation Ltd is ₹1,29,126.25 crore. The stock’s 1-month return is 13.63%, while its 1-year return is 1.2%. It is currently 26.03% away from its 52-week high.
Bharat Petroleum Corporation Ltd is a major player in India’s oil refining and marketing space. It operates refineries and a widespread distribution network for petroleum products.
The company focuses on customer-centric innovations and green energy transitions. BPCL is also investing in alternative fuels, EV charging infrastructure, and renewable projects for long-term sustainability.

Bank of Baroda Ltd

The Market Cap of Bank of Baroda Ltd is ₹1,25,262.15 crore. The stock’s 1-month return is 17.3%, while its 1-year return is -6.25%. It is currently 23.43% away from its 52-week high.
Bank of Baroda Ltd is a prominent public sector bank providing a comprehensive range of banking services. It serves individuals, SMEs, and corporates through an extensive branch network.
The bank emphasises digital transformation and customer-first initiatives. Bank of Baroda plays a crucial role in financial inclusion and economic development across urban and rural sectors.

Gail (India) Ltd

The Market Cap of Gail (India) Ltd is ₹1,22,650.05 crore. The stock’s 1-month return is 18.41%, while its 1-year return is -8.14%. It is currently 31.72% away from its 52-week high.
Gail (India) Ltd is the largest gas utility company in India, involved in natural gas processing and distribution. It operates pipelines and delivers gas to power, fertilizer, and industrial sectors.
The company is also expanding its role in green energy and hydrogen economy initiatives. GAIL is focused on creating sustainable energy infrastructure aligned with the country’s energy transition goals.

Punjab National Bank

The Market Cap of Punjab National Bank is ₹1,14,078.21 crore. The stock’s 1-month return is 13.07%, while its 1-year return is -23.2%. It is currently 43.62% away from its 52-week high.
Punjab National Bank is a long-established public sector bank offering a variety of financial services across India. It caters to retail, corporate, and agricultural segments.
The bank has implemented digital platforms and financial literacy campaigns. PNB is committed to enhancing customer experience and strengthening its role in the national banking ecosystem.

Union Bank of India Ltd

The Market Cap of Union Bank of India Ltd is ₹96,400.10 crore. The stock’s 1-month return is 11.34%, while its 1-year return is -11.2%. It is currently 36.27% away from its 52-week high.
Union Bank of India Ltd is a government-owned bank with a strong domestic and global presence. It provides banking and financial solutions through physical and digital channels.
The bank focuses on inclusive growth and customer satisfaction. Union Bank is known for supporting government initiatives and empowering small businesses and rural enterprises.

Canara Bank Ltd

The Market Cap of Canara Bank Ltd is ₹86,885.74 crore. The stock’s 1-month return is 15.95%, while its 1-year return is -17.71%. It is currently 34.24% away from its 52-week high.
Canara Bank Ltd is a leading public sector bank offering a diverse portfolio of financial products. It operates with a strong focus on customer-centricity and digital innovation.
The bank contributes significantly to priority sector lending and social development programs. Canara Bank is also recognised for its strong corporate governance and strategic banking services.

What Are Low Price PSU Stocks?

Low Price PSU (Public Sector Undertaking) stocks refer to shares of government-owned companies available at a relatively low price. These stocks typically belong to sectors like energy, banking, and infrastructure, offering the potential for value appreciation.

These stocks often attract investors looking for stability and dividends, as PSUs tend to be well-established companies. The government’s involvement provides a level of reliability, although the returns may vary depending on industry performance and market conditions.

Features Of Low Price PSU Stocks

The main features of low price PSU stocks include government ownership, stable dividend yields, undervaluation potential, and moderate growth opportunities. They are usually in critical sectors with less volatility, providing stability for conservative investors.

  • Government Ownership: Low price PSU stocks are backed by government ownership, ensuring reliability and stability. This ownership provides a safety net, reducing risks compared to private sector stocks, especially during uncertain economic conditions.
  • Dividend Yield: Many PSU stocks offer consistent dividend payments, making them attractive for investors seeking regular income. The steady revenue from dividends can help balance the portfolio risk and add passive income.
  • Undervaluation Potential: Low price PSU stocks are often undervalued compared to their private counterparts. This undervaluation offers potential for price appreciation as market sentiments or performance improve, leading to better returns for value investors.
  • Sector Focus: Most low price PSU stocks are in essential sectors like energy, infrastructure, or banking. These sectors are critical to the economy, making PSUs less volatile and safer for long-term investments compared to high-growth sectors.

PSU Stocks In India Based on 6 Month Return

The table below shows PSU Stocks In India Based on 6 Month Return.

NameClose Price (₹)6M Return (%)
Union Bank of India Ltd126.5912.81
Bank of India Ltd117.111.72
Housing and Urban Development Corporation Ltd228.846.41
Bharat Electronics Ltd295.152.79
NHPC Ltd84.981.01
Bank of Baroda Ltd242.81-2.08
Punjab National Bank99.5-3.65
Canara Bank Ltd96.02-8.26
Bharat Heavy Electricals Ltd227.39-10.42
Bank of Maharashtra Ltd48.4-10.87

PSU Stocks With Price Based on 5 Year Net Profit Margin

The table below shows PSU Stocks With Price Based on 5 Year Net Profit Margin.

NameClose Price (₹)5Y Avg Net Profit Margin (%)
NMDC Ltd65.8731.43
NHPC Ltd84.9831.23
Indian Railway Finance Corp Ltd129.4826.36
Housing and Urban Development Corporation Ltd228.8423.88
Indian Renewable Energy Development Agency Ltd173.4122.05
Bharat Electronics Ltd295.1515.94
Gail (India) Ltd186.999.28
Bank of Maharashtra Ltd48.49.19
Bank of Baroda Ltd242.817.68
Oil and Natural Gas Corporation Ltd243.496.15

List Of PSU Stocks Based on 1M Return

The table below shows a List Of PSU Stocks Based on a 1-month return.

NameClose Price (₹)1M Return (%)
Indian Renewable Energy Development Agency Ltd173.4123.18
Bank of India Ltd117.122.85
Housing and Urban Development Corporation Ltd228.8421.04
Gail (India) Ltd186.9918.41
Bank of Baroda Ltd242.8117.3
Canara Bank Ltd96.0215.95
Bharat Heavy Electricals Ltd227.3915.39
Bharat Petroleum Corporation Ltd298.3513.63
Punjab National Bank99.513.07
Union Bank of India Ltd126.5911.34

High Dividend Yield Low Price PSU Stocks

The table below shows High Dividend Yield Low Price PSU Stocks based on High Dividend Yield.

NameClose Price (₹)Dividend Yield (%)
Indian Oil Corporation Ltd134.38.74
Bharat Petroleum Corporation Ltd298.356.95
Oil and Natural Gas Corporation Ltd243.495.04
NMDC Ltd65.873.68
Canara Bank Ltd96.023.36
Bank of Baroda Ltd242.813.15
Gail (India) Ltd186.992.95
Union Bank of India Ltd126.592.85
Bank of Maharashtra Ltd48.42.67
Bank of India Ltd117.12.4

Historical Performance of Low Price PSU Stocks

The table below shows the Historical Performance of Low Price PSU Stocks based on Market Cap and 5Y Return. 

NameClose Price (₹)5Y CAGR (%)
Bharat Electronics Ltd295.1565.53
Bharat Heavy Electricals Ltd227.3959.76
Housing and Urban Development Corporation Ltd228.8457.05
Canara Bank Ltd96.0240.77
Bank of Maharashtra Ltd48.438.64
Indian Overseas Bank37.0738.59
Bank of Baroda Ltd242.8137.06
Union Bank of India Ltd126.5934.18
Steel Authority of India Ltd113.9632.13
NHPC Ltd84.9830.33

Factors To Consider When Investing In Low Price PSU Stocks

The main factors to consider when investing in Low Price PSU stocks include financial stability, dividend yield, government policies, and market volatility. Evaluating these factors helps investors make informed decisions about the viability and potential risks associated with low price PSU investments.

  • Financial Stability: Investors should assess the financial health of PSU companies, considering aspects like revenue, profit, debt levels, and cash flow. Strong financials indicate a company’s ability to withstand market fluctuations and ensure sustainable growth.
  • Dividend Yield: Evaluating the dividend yield is crucial when investing in low price PSU stocks, as many offer attractive dividends. High dividend payouts indicate consistent income generation, making them suitable for income-focused investors.
  • Government Policies: Government policies significantly influence PSU stocks. Investors should stay updated with regulatory changes, privatization plans, or sector-specific reforms, as such policies may impact profitability and the company’s long-term outlook.
  • Market Volatility: Low price PSU stocks can be impacted by market volatility. Understanding the market sentiment and economic conditions is essential to gauge how these stocks might perform under different scenarios and manage investment risk effectively.

How To Invest In Low Price PSU Stocks?

To invest in low price PSU stocks, open a Demat and trading account with Alice Blue, conduct research on potential stocks, and purchase them through the stock market via online trading platforms or through mutual funds focusing on PSUs.

Impact of Government Policies on Low Price PSU Stocks

Government policies play a crucial role in determining the performance of low price PSU stocks. Policy changes such as subsidy reforms, regulatory adjustments, or privatization initiatives can significantly impact stock valuation and growth prospects for these companies.

Privatization and divestment plans are often positive for PSU stocks, leading to improved efficiency and profitability. However, unfavorable policies like price regulation can restrict growth, making it essential for investors to monitor government actions closely.

How Low Price PSU Stocks Perform in Economic Downturns?

During economic downturns, low price PSU stocks tend to be more resilient compared to high-growth stocks, as they belong to sectors like utilities, energy, and banking, which are less impacted by economic cycles.

The government backing also helps stabilize these companies during crises. However, profitability may still be affected due to reduced demand, lower industrial activity, and other economic constraints, impacting the overall returns for investors.

Advantages Of Investing In Low Price PSU Stocks?

The main advantages of investing in Low Price PSU stocks include government backing, consistent dividend yield, low valuation, and potential for stable returns. These stocks are typically less risky and offer better resilience during market downturns.

  • Government Backing: PSU stocks benefit from government ownership, providing stability and assurance of operations. This backing ensures that the companies can access financial support when needed, adding an extra layer of security for investors.
  • Dividend Income: Many PSU stocks offer regular dividends, making them an attractive option for investors seeking steady income. This dividend yield serves as a reliable source of passive income, even during market volatility.
  • Undervalued Opportunities: Low price PSU stocks are often undervalued, offering significant growth potential as market sentiment or company performance improves. Investors looking for value investments can benefit from potential price appreciation.
  • Lower Risk Profile: PSUs are typically in core sectors, which are less susceptible to extreme market swings. The focus on utilities, infrastructure, and banking makes these stocks less risky, providing stability for conservative investors.

Risks Of Investing In Low Price PSU Stocks?

The main risks of investing in Low Price PSU stocks include government intervention, market inefficiency, low growth prospects, and potential privatization issues. Investors should consider these factors before deciding on PSU investments.

  • Government Intervention: Frequent government intervention can impact PSU company policies and profitability. The decisions may not always align with shareholder interests, leading to inefficiencies or limiting growth potential for these companies.
  • Market Inefficiency: Low price PSU stocks may not be accurately valued by the market, leading to mispricing. This market inefficiency may result in lower trading volumes and higher risks of price stagnation, affecting investor returns.
  • Low Growth Prospects: Compared to private companies, PSUs often face bureaucratic hurdles, leading to slower decision-making and limited growth opportunities. This conservative approach impacts their ability to compete effectively, resulting in moderate or stagnant returns.
  • Privatization Issues: Government privatization plans may introduce uncertainty in low price PSU stocks. Delays or failure to privatize can affect investor sentiment, leading to increased volatility and potential loss of interest in these stocks.

Low Price PSU Stocks GDP Contribution

Low price PSU stocks contribute significantly to the nation’s GDP through their involvement in critical sectors like energy, banking, and infrastructure. Their operations ensure sustained growth and development across sectors, supporting the country’s economic progress.

These PSUs drive major projects and offer employment opportunities, leading to overall economic growth. Their consistent operations in core sectors enhance industrial development, playing a vital role in maintaining GDP stability during various economic phases.

Who Should Invest in Low Price PSU Stocks?

Low price PSU stocks are ideal for conservative investors seeking stable income with moderate growth potential. Retirees, income-focused investors, and those looking for relatively lower-risk investments can benefit from the stability offered by these government-backed companies.

These stocks also suit long-term investors willing to wait for potential valuation gains. While not as aggressive as high-growth stocks, PSUs provide a combination of steady dividend yields and relative safety, suitable for risk-averse individuals.

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Low Price PSU Stocks In India – FAQs

1. What is PSU Stocks?

PSU (Public Sector Undertaking) stocks are shares of companies owned or controlled by the government. These companies operate in various sectors, providing services or products deemed essential to the economy.


2. What Are The Top Low Price PSU Stocks?

The Top Low Price PSU Stocks # 1: Oil and Natural Gas Corporation Ltd
The Top Low Price PSU Stocks # 2: Bharat Electronics Ltd
The Top Low Price PSU Stocks # 3: Indian Oil Corporation Ltd
The Top Low Price PSU Stocks # 4: Indian Railway Finance Corp Ltd
The Top Low Price PSU Stocks # 5: Bharat Petroleum Corporation Ltd

The Top Low Price PSU Stocks are Based on Market Capitalization.

3. What Are the Best Low Price PSU Stocks?

The Best Low Price PSU Stocks based on 6-month return include Union Bank of India Ltd, Bharat Electronics Ltd, Bank of Baroda Ltd, Canara Bank Ltd, and Central Bank of India Ltd, offering solid returns with affordable entry points for investors.

4. Is It Safe To Invest In Low Price PSU Stocks?

Investing in low price PSU stocks is relatively safe due to government backing, stable dividends, and lower volatility. However, growth may be slower, and risks depend on market conditions and policies.

5. How To Invest In Low Price PSU Stocks?

To invest in low price PSU stocks, open a trading account with Alice Blue, research companies, and buy through a stockbroker or online trading platform. Alternatively, invest via mutual funds focusing on PSU stocks.

6. Which PSU Stocks Is Undervalued?

Undervalued PSU stocks include companies like National Aluminium Co Ltd, Gail (India) Ltd, and NBCC (India) Ltd, which are currently trading below their intrinsic value, offering the potential for long-term growth and returns.

 

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.

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