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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 (₹)1Y Return (%)
Indian Railway Finance Corp Ltd2,03,770.36158.11116.74
Indian Oil Corporation Ltd2,01,351.59144.9956.83
Gail (India) Ltd1,31,465.30200.1670.2
Bank of Baroda Ltd1,29,751.18253.729.77
Punjab National Bank1,12,490.49100.9838.52
Indian Overseas Bank1,02,919.2754.9540.54
Canara Bank Ltd93,089.19103.9633.9
Union Bank of India Ltd89,422.75117.8514.14
NHPC Ltd82,953.2484.1369.96
NMDC Ltd65,006.66222.8445.03

Introduction to Low Price PSU Stocks

Indian Oil Corporation Ltd

The Market Cap of Indian Oil Corporation Ltd is Rs. 2,01,351.59 crores. The stock’s monthly return is -21.27%. Its one-year return is 56.83%. The stock is 60.30% away from its 52-week high.

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Indian Oil Corporation Ltd is one of India’s largest oil and gas companies, playing a pivotal role in refining, pipeline transportation, and marketing petroleum products. It holds a significant share in India’s energy sector, contributing to both national energy security and economic growth.

The company is also expanding into cleaner energy initiatives, including biofuels and electric mobility infrastructure, to align with global sustainability goals. Its diversified portfolio and continuous investments in innovation ensure a strong position in the Indian energy landscape.

Indian Railway Finance Corp Ltd

The Market Cap of Indian Railway Finance Corp Ltd is Rs. 2,03,770.36 crores. The stock’s monthly return is -0.95%. Its one-year return is 116.74%. The stock is 122.53% away from its 52-week high.

Indian Railway Finance Corp Ltd (IRFC) is the dedicated financing arm of Indian Railways, providing crucial financial support for infrastructure development and rolling stock acquisition. It plays a key role in modernizing India’s rail network through cost-effective financing solutions.

IRFC’s strong government backing and consistent performance make it a stable and vital part of India’s infrastructure financing ecosystem, with steady growth prospects as the railway sector continues to expand and upgrade its operations.

GAIL (India) Ltd

The Market Cap of Gail (India) Ltd is Rs. 1,31,465.30 crores. The stock’s monthly return is -17.50%. Its one-year return is 70.20%. The stock is 70.49% away from its 52-week high.

GAIL (India) Ltd is the leading natural gas processing and distribution company in India, contributing significantly to the country’s energy transition toward cleaner fuels. It operates an extensive pipeline network and is expanding into petrochemicals and renewable energy projects.

With a focus on sustainable energy, GAIL is exploring opportunities in hydrogen and solar energy, making it a forward-looking player in India’s evolving energy landscape, balancing traditional and alternative energy sources.

Bank of Baroda Ltd

The Market Cap of Bank of Baroda Ltd is Rs. 1,29,751.18 crores. The stock’s monthly return is 0.48%. Its one-year return is 29.77%. The stock is 33.07% away from its 52-week high.

Bank of Baroda Ltd is one of India’s largest public sector banks, offering a comprehensive range of banking services, including retail banking, corporate banking, and treasury services. Its extensive domestic and international presence strengthens its position in the global financial sector.

With a focus on digital transformation, Bank of Baroda continues to enhance customer experience and expand its service offerings, ensuring competitive growth in India’s dynamic banking industry.

Punjab National Bank

The Market Cap of Punjab National Bank is Rs. 1,12,490.49 crores. The stock’s monthly return is -6.78%. Its one-year return is 38.52%. The stock is 39.00% away from its 52-week high.

Punjab National Bank (PNB) is a major public sector bank in India with a wide network of branches and ATMs. It provides a broad array of financial products and services, catering to retail, corporate, and agricultural customers.

PNB’s strong government backing and initiatives toward improving asset quality make it a key player in the Indian banking system, focused on financial inclusion and digital banking.

Indian Overseas Bank

The Market Cap of Indian Overseas Bank is Rs. 1,02,919.27 crores. The stock’s monthly return is -5.73%. Its one-year return is 40.54%. The stock is 41.62% away from its 52-week high.

Indian Overseas Bank (IOB) is a public sector bank known for its extensive international presence and strong focus on overseas remittances. The bank offers a wide range of services, including personal banking, corporate banking, and agricultural finance.

IOB is steadily working towards enhancing its asset quality and improving profitability, making it a key player in the Indian banking landscape with growth potential in both domestic and international markets.

Canara Bank Ltd

The Market Cap of Canara Bank Ltd is Rs. 93,089.19 crores. The stock’s monthly return is -7.56%. Its one-year return is 33.90%. The stock is 36.79% away from its 52-week high.

Canara Bank Ltd is one of India’s largest public sector banks, offering a broad range of financial services, including corporate banking, retail banking, and asset management. The bank continues to strengthen its digital banking services to meet modern financial needs.

Canara Bank’s steady financial performance and government backing position it as a reliable banking institution with significant growth potential, particularly in expanding its retail and SME lending operations.

NHPC Ltd

The Market Cap of NHPC Ltd is Rs. 82,953.24 crores. The stock’s monthly return is -13.50%. Its one-year return is 69.96%. The stock is 71.00% away from its 52-week high.

NHPC Ltd is India’s largest hydropower generation company, contributing significantly to the country’s renewable energy sector. The company is involved in constructing and operating hydroelectric projects across India, aligning with the government’s push towards green energy.

NHPC is expanding its portfolio by exploring solar and wind energy projects, enhancing its role in India’s sustainable energy future. Its focus on renewable energy positions it as a key player in the green energy transition.

Union Bank of India Ltd

The Market Cap of Union Bank of India Ltd is Rs. 89,422.75 crores. The stock’s monthly return is -4.72%. Its one-year return is 14.14%. The stock is 17.21% away from its 52-week high.

Union Bank of India Ltd is a major public sector bank, providing a wide range of financial services to individuals, corporates, and the agricultural sector. It has a large branch network across India and is focused on expanding its digital banking capabilities.

With strong government support and efforts to improve asset quality, Union Bank remains a stable player in the Indian banking sector, with growth potential in various segments, including retail banking and SME lending.

NMDC Ltd

The Market Cap of NMDC Ltd is Rs. 65,006.66 crores. The stock’s monthly return is -8.71%. Its one-year return is 45.03%. The stock is 45.89% away from its 52-week high.

NMDC Ltd is India’s largest iron ore producer and exporter, playing a critical role in the country’s steel production. It also explores and produces other minerals like copper and diamonds, contributing to the mining sector’s growth.

With continuous efforts to diversify and modernize its operations, NMDC remains a key player in India’s industrial and infrastructure development, aligning with the nation’s growth in steel and other essential materials.

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 Price6M Return %
Indian Railway Finance Corp Ltd158.11-0.5
Gail (India) Ltd200.16-2.38
Bank of Baroda Ltd253.7-9.2
NMDC Ltd222.84-13.79
NHPC Ltd84.13-14.15
Indian Oil Corporation Ltd144.99-16.38
Canara Bank Ltd103.96-17.31
Indian Overseas Bank54.95-18.05
Union Bank of India Ltd117.85-23.8
Punjab National Bank100.98-26.85

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 Price5Y Avg Net Profit Margin %
NMDC Ltd222.8431.43
NHPC Ltd84.1331.23
Indian Railway Finance Corp Ltd158.1126.36
Gail (India) Ltd200.169.28
Bank of Baroda Ltd253.77.68
Canara Bank Ltd103.965.49
Union Bank of India Ltd117.854.62
Punjab National Bank100.983.7
Indian Oil Corporation Ltd144.993.26

List Of PSU Stocks Based on 1M Return

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

NameClose Price1M Return %
Bank of Baroda Ltd253.70.48
Indian Railway Finance Corp Ltd158.11-0.95
Union Bank of India Ltd117.85-4.72
Indian Overseas Bank54.95-5.73
Punjab National Bank100.98-6.78
Canara Bank Ltd103.96-7.56
NMDC Ltd222.84-8.71
NHPC Ltd84.13-13.5
Gail (India) Ltd200.16-17.5
Indian Oil Corporation Ltd144.99-21.27

High Dividend Yield Low Price PSU Stocks

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

NameClose PriceDividend Yield %
Indian Oil Corporation Ltd144.998.21
NMDC Ltd222.843.27
Canara Bank Ltd103.963.14
Union Bank of India Ltd117.853.07
Bank of Baroda Ltd253.73.04
Gail (India) Ltd200.162.75
NHPC Ltd84.132.3
Punjab National Bank100.981.47
Indian Railway Finance Corp Ltd158.110.96

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 Price5Y CAGR %
Indian Overseas Bank54.9538.2
NHPC Ltd84.1329.06
Bank of Baroda Ltd253.720.47
Canara Bank Ltd103.9620.21
Gail (India) Ltd200.1617.31
NMDC Ltd222.8415.07
Union Bank of India Ltd117.8514.88
Indian Oil Corporation Ltd144.998.8
Punjab National Bank100.988.5

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: Indian Oil Corporation Ltd
The Top Low Price PSU Stocks # 2: Indian Railway Finance Corp Ltd
The Top Low Price PSU Stocks # 3: Gail (India) Ltd
The Top Low Price PSU Stocks # 4: Bank of Baroda Ltd
The Top Low Price PSU Stocks # 5: Punjab National Bank

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 Indian Railway Finance Corp Ltd, Gail (India) Ltd, Bank of Baroda Ltd, NMDC Ltd, and NHPC 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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