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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 Ltd2,82,773.94225.43-14.37
Power Grid Corporation of India Ltd2,48,208.01267.650.49
Bharat Electronics Ltd2,04,724.98280.0743.44
Indian Oil Corporation Ltd1,76,946.42125.67-26.23
Indian Railway Finance Corp Ltd1,53,356.75117.69-16.09
Bharat Petroleum Corporation Ltd1,14,381.40264.41-13.13
Gail (India) Ltd1,03,558.45157.96-10.3
NHPC Ltd77,693.1377.57-8.79
Bharat Heavy Electricals Ltd67,123.30193.33-14.63
NMDC Ltd55,928.9663.8-5.22

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 ₹2,82,773.94 crore. The stock’s 1-month return is -4.19%, while its 1-year return is -14.37%. It is currently 53.04% away from its 52-week high.

Oil and Natural Gas Corporation Ltd is India’s leading oil and gas exploration company, playing a crucial role in the country’s energy security. With vast offshore and onshore assets, the company engages in upstream exploration, production, and refining activities across diverse energy fields.

It is a pioneer in technological advancements and sustainability in hydrocarbon extraction. Its efforts in deepwater exploration, shale gas, and alternative energy projects contribute significantly to India’s energy sector, ensuring long-term energy availability and reducing dependence on imports.

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Power Grid Corporation of India Ltd

The Market Cap of Power Grid Corporation of India Ltd is ₹2,48,208.01 crore. The stock’s 1-month return is 2.78%, while its 1-year return is 0.49%. It is currently 36.84% away from its 52-week high.

Power Grid Corporation of India Ltd is India’s premier power transmission company, ensuring reliable electricity distribution across the country. Managing an extensive network of transmission lines, it plays a pivotal role in strengthening the national power grid and minimising transmission losses.

With a focus on modernisation and digitalisation, the company integrates advanced automation and smart grid technologies. Its investments in green energy corridors and international projects further bolster its vision to enhance India’s energy efficiency and global connectivity.

Bharat Electronics Ltd

The Market Cap of Bharat Electronics Ltd is ₹2,04,724.98 crore. The stock’s 1-month return is 6.84%, while its 1-year return is 43.44%. It is currently 21.58% away from its 52-week high.

Bharat Electronics Ltd is a key player in India’s defense electronics sector, manufacturing advanced communication, radar, and surveillance systems. It supports the Indian armed forces with cutting-edge technology, strengthening national security through its innovative defense solutions.

With a strong emphasis on research and development, the company continues to expand into artificial intelligence, cybersecurity, and space electronics. Its collaborations with global defense firms and indigenous manufacturing initiatives position it as a leader in high-tech defense systems.

Indian Oil Corporation Ltd

The Market Cap of Indian Oil Corporation Ltd is ₹1,76,946.42 crore. The stock’s 1-month return is 3.85%, while its 1-year return is -26.23%. It is currently 47.98% away from its 52-week high.

Indian Oil Corporation Ltd is India’s largest oil-refining and marketing company, ensuring fuel availability nationwide. It operates an extensive network of refineries, pipelines, and retail outlets, catering to industrial, commercial, and domestic energy needs.

Focused on sustainability, the company invests in green energy initiatives such as biofuels, hydrogen, and electric vehicle infrastructure. Its global partnerships and technological advancements enhance energy efficiency, reinforcing its commitment to a cleaner and self-reliant energy ecosystem.

Indian Railway Finance Corp Ltd

The Market Cap of Indian Railway Finance Corp Ltd is ₹1,53,356.75 crore. The stock’s 1-month return is -7.44%, while its 1-year return is -16.09%. It is currently 94.58% away from its 52-week high.

Indian Railway Finance Corp Ltd plays a vital role in financing the expansion and modernisation of Indian Railways. By providing financial resources for infrastructure projects, it ensures sustainable growth in railway networks, supporting economic and industrial progress.

The company facilitates capital investment in electrification, high-speed rail, and network expansion projects. Its strategic financial planning aids in the transformation of Indian Railways into a technologically advanced and energy-efficient transportation system.

Bharat Petroleum Corporation Ltd

The Market Cap of Bharat Petroleum Corporation Ltd is ₹1,14,381.40 crore. The stock’s 1-month return is 2.82%, while its 1-year return is -13.13%. It is currently 42.2% away from its 52-week high.

Bharat Petroleum Corporation Ltd is a leading energy company in India, engaged in refining, marketing, and distribution of petroleum products. Its strong retail presence ensures seamless fuel availability across the country through a vast network of fuel stations.

Committed to energy transition, it actively invests in renewable energy, biofuels, and electric mobility infrastructure. With strategic global partnerships and technology-driven operations, the company aims to enhance efficiency and sustainability in India’s energy sector.

Gail (India) Ltd

The Market Cap of Gail (India) Ltd is ₹1,03,558.45 crore. The stock’s 1-month return is -3.08%, while its 1-year return is -10.3%. It is currently 55.93% away from its 52-week high.

Gail (India) Ltd is the country’s largest natural gas company, managing transportation, processing, and distribution. It plays a crucial role in promoting cleaner energy solutions, reducing carbon emissions, and expanding India’s gas infrastructure.

With a focus on liquefied natural gas (LNG), petrochemicals, and pipeline networks, the company strengthens India’s transition to a gas-based economy. Its investments in renewable energy and hydrogen projects further support sustainable energy development.

NHPC Ltd

The Market Cap of NHPC Ltd is ₹77,693.13 crore. The stock’s 1-month return is 2.67%, while its 1-year return is -8.79%. It is currently 52.64% away from its 52-week high.

NHPC Ltd is a leading hydropower company in India, harnessing renewable energy sources to generate electricity. Its large-scale projects ensure stable and sustainable power supply, contributing to the nation’s energy security.

The company actively invests in solar and wind energy, aligning with India’s renewable energy goals. Its expertise in hydroelectric development and commitment to sustainability make it a key player in the clean energy transition.

Bharat Heavy Electricals Ltd

The Market Cap of Bharat Heavy Electricals Ltd is ₹67,123.30 crore. The stock’s 1-month return is -4.76%, while its 1-year return is -14.63%. It is currently 73.46% away from its 52-week high.

Bharat Heavy Electricals Ltd is a major engineering and manufacturing company specialising in power plant equipment, industrial machinery, and transportation solutions. It contributes significantly to India’s energy and infrastructure development.

The company’s focus on renewable energy, smart grids, and nuclear power solutions highlights its commitment to innovation. By modernizing manufacturing processes and adopting digital transformation it enhances efficiency in energy generation and industrial projects.

NMDC Ltd

The Market Cap of NMDC Ltd is ₹55,928.96 crore. The stock’s 1-month return is -0.67%, while its 1-year return is -5.22%. It is currently 49.61% away from its 52-week high.

NMDC Ltd is India’s largest iron ore producer, supplying high-grade raw materials to the steel industry. Its extensive mining operations ensure a steady supply of essential minerals, supporting infrastructure and manufacturing growth.

Committed to sustainable mining, the company adopts eco-friendly practices and advanced technologies. Its efforts in exploration, beneficiation, and value-added products reinforce its position as a crucial player in India’s mineral and steel sector.

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 (%)
National Aluminium Co Ltd187.87-0.8
Bharat Electronics Ltd280.07-3.56
NMDC Ltd63.8-12.64
NLC India Ltd226.1-15.9
NHPC Ltd77.57-19.36
Steel Authority of India Ltd105.89-20.41
Power Grid Corporation of India Ltd267.65-20.87
Bharat Petroleum Corporation Ltd264.41-22.38
Oil and Natural Gas Corporation Ltd225.43-22.93
Indian Oil Corporation Ltd125.67-26.86

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 (%)
SJVN Ltd85.4241.4
Power Grid Corporation of India Ltd267.6531.67
NMDC Ltd63.831.43
NHPC Ltd77.5731.23
Indian Railway Finance Corp Ltd117.6926.36
Housing and Urban Development Corporation Ltd180.7623.88
Bharat Electronics Ltd280.0715.94
National Aluminium Co Ltd187.8712.1
NLC India Ltd226.110.1
Gail (India) Ltd157.969.28

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 (%)
NLC India Ltd226.111.94
Bharat Electronics Ltd280.076.84
Mangalore Refinery and Petrochemicals Ltd119.334.14
Indian Oil Corporation Ltd125.673.85
Bharat Petroleum Corporation Ltd264.412.82
Power Grid Corporation of India Ltd267.652.78
NHPC Ltd77.572.67
NMDC Ltd63.8-0.67
National Aluminium Co Ltd187.87-1.02
Gail (India) Ltd157.96-3.08

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 Ltd125.679.34
Bharat Petroleum Corporation Ltd264.417.84
Oil and Natural Gas Corporation Ltd225.435.45
Power Grid Corporation of India Ltd267.654.22
NMDC Ltd63.83.8
Gail (India) Ltd157.963.49
National Aluminium Co Ltd187.872.67
Mangalore Refinery and Petrochemicals Ltd119.332.52
NHPC Ltd77.572.46
Housing and Urban Development Corporation Ltd180.762.3

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 Ltd280.0764.43
Hindustan Copper Ltd215.852.69
Housing and Urban Development Corporation Ltd180.7649.82
Bharat Heavy Electricals Ltd193.3349.43
NBCC (India) Ltd77.8944.11
National Aluminium Co Ltd187.8743.76
NLC India Ltd226.137.89
SJVN Ltd85.4232.65
NHPC Ltd77.5730.43
Ircon International Ltd140.4530.23

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: Power Grid Corporation of India Ltd
The Top Low Price PSU Stocks # 3: Bharat Electronics Ltd
The Top Low Price PSU Stocks # 4: Indian Oil Corporation Ltd
The Top Low Price PSU Stocks # 5: Indian Railway Finance Corp 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.

 

Here are some of the Best Stock Research Articles listed based on Top Sectors (Industries), Market Cap, and Fundamental Analysis Factors:

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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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