PSU Stocks: The Hidden Gems of Indian Investing in 2023

Date : 01/08/2023
Read: 3 mins

Curious about investing in India's top PSU stocks for 2023? Read this article to find stocks with strong fundamentals, competitive advantages and attractive dividends.

Best PSU stocks, investment advice, Stock investment

India’s public sector units, or PSUs, have been the backbone of its economy since independence. They have contributed to the country’s industrialisation, infrastructure, technology and employment. But are they still relevant and profitable in 2023? In this article, we will explore the best PSU stocks to buy in India for 2023, based on their fundamentals, performance and prospects. We will also explain why investing in PSU stocks can be a smart and rewarding decision for your portfolio.

Highlights:

PSUs are the backbone of India's economy.
PSU stocks can be a smart investment.
PM Modi is optimistic about PSUs.
ONGC, CIL and NMDC are amongst the top PSUs.

Also Read: How Rs. 2000 note withdrawal unleashes PSU bank stock surge!

Investing in PSU stocks can be a smart and rewarding decision for your portfolio. Companies like ONGC and CIL have shown impressive growth, attractive dividends and low valuations. The government's optimism and efforts to revamp management further support the potential of these stocks. However, you should also be aware of the risks and uncertainties that may affect the future of PSUs, such as the economic situation, the government policies, and more.

What is the definition of PSU stocks?

Public Sector Undertaking PSUs in India are government-owned companies, with a minimum 51% stake held by the government. They play a crucial role in driving economic growth and focus on sectors like coal, finance, power, infrastructure, and more. Their aim is to develop and expand the country's infrastructure, laying a strong foundation for progress.

Is the government optimistic about PSUs?

PM Modi in parliament said PSUs are delivering robust numbers and competing with peers. He cited the examples of HAL and LIC in this regard. Experts also believe it's time to accumulate PSU stocks, especially banking and power stocks. PSUs hired high skilled professionals to overhaul management, increased CAPEX, decreased provisions and NPA.

Which are some of the best PSUs in India?

Some of the top PSUs in India are given below:

Oil and Natural Gas Corporation (ONGC)

The company’s income and profit grew from Rs 105,420 crore and Rs 17,463 crore in FY19 to Rs 144,802 crore and Rs 28,133 crore in FY23. Its PE ratio is 5.95 and dividend yield is 10.36.

Coal India Limited (CIL)

The company’s income and profit increased from Rs 105,420 crore and Rs 17,463 crore in FY19 to Rs 144,802 crore and Rs 28,133 crore in FY23. Its dividend yield is 10.36 and PE ratio is 5.14.

National Mineral Development Corporation Ltd (NMDC)

The company’s income and profit rose from Rs 12,741 crore and Rs 4,637 crore in FY19 to Rs 18,435 crore and Rs 5,537 crore in FY23. Its dividend yield is 6.17 and the PE ratio is 5.6.

Also Read: What are PSU stocks? How many PSUs are listed in India?

Disclaimer: This article is intended for general information purposes only and should not be construed as investment or tax advice.