Public sector undertakings (PSUs) have always played an important role in India’s economic growth. These companies, backed by government ownership, often enjoy strong fundamentals, reliable cash flows, and a steady dividend record. Investors keep a close watch on PSU stocks because they can deliver consistent long-term value while offering attractive valuations compared to private peers. Looking at the current market data, a few PSU stocks stand out with strong financials, healthy returns, and stable performance.
This article takes a closer look at some of the top PSU stocks that deserve attention, based on their latest performance numbers, market capitalization, and growth indicators.
Gujarat State Fertilizers & Chemicals (GSFC) is one of the most prominent PSU companies in the fertilizer and chemicals sector. With a current market price (CMP) of ₹205.60, GSFC has a market capitalization of ₹8192.70 crore. The stock trades at a P/E ratio of 12.76, suggesting a balanced valuation.
The company’s quarterly net profit stands at ₹138.60 crore, while annual net profit is ₹563.79 crore. Its return on capital employed (ROCE) is 6.18%, which is modest but steady for a PSU player in this sector. GSFC’s quarterly profit growth has been robust at 58.69%, showing resilience and operational efficiency despite sector challenges.
For investors seeking stable growth with exposure to the fertilizer industry, GSFC remains a strong candidate.
Gujarat Narmada Valley Fertilizers & Chemicals (GNFC) is another important PSU stock. Priced at ₹506.70, GNFC commands a market cap of ₹7445.48 crore. With a P/E of 13.25, the stock is trading fairly, but what draws attention is its declining quarterly net profit of ₹83 crore compared to the previous annual net profit of ₹497.06 crore.
Its quarterly sales were reported at ₹1601 crore, with a negative variation of -20.78%. Additionally, quarterly profit variation stood at -29.66%, which may worry short-term investors. However, for those focused on long-term PSU plays, GNFC’s fundamentals and government backing still provide some confidence.
South Indian Bank, though smaller in size compared to other PSU banks, has shown resilience in the financial services space. The bank trades at ₹29.55 with a market capitalization of ₹7732.39 crore. Its P/E ratio of 5.81 makes it one of the more attractively valued banks in the PSU basket.
Quarterly net profit is ₹321.95 crore, with annual profit at ₹1070.08 crore. The bank’s ROCE is 6.50%, which indicates room for improvement, but profit growth of 9.46% shows a positive trajectory. For investors looking at low-cost PSU banks with potential upside, South Indian Bank provides a strong opportunity.
Tamil Nadu Mercantile Bank has been attracting investor attention due to its stable growth patterns. Priced at ₹430.35, the bank enjoys a market capitalization of ₹6814.65 crore and trades at a P/E ratio of 5.68.
The bank reported quarterly net profit of ₹304.89 crore and annual profit of ₹1072.03 crore. With a quarterly profit variation of 6.13% and ROCE at 7.49%, the bank demonstrates healthy fundamentals. Its book value per share is ₹589.09, which strengthens investor confidence.
Karnataka Bank has long been a steady name in the PSU banking sector. With a CMP of ₹174.21 and market capitalization of ₹6586.11 crore, the bank offers decent size and valuation. Its P/E stands at 5.66, suggesting attractive pricing.
However, the bank faced a quarterly net profit of ₹292.40 crore against annual profits of ₹1306.28 crore. Quarterly profit growth declined by -26.96%, and sales variation also dipped slightly. Despite these challenges, Karnataka Bank remains a reliable long-term PSU holding, backed by its strong regional presence and customer base.
Infrastructure investment trusts (InvITs) backed by PSUs are gaining importance for investors seeking income-oriented investments. Shrem InvIT trades at ₹105.50 with a market capitalization of ₹6444.41 crore. It has one of the highest dividend yields at 22.13%, making it an attractive stock for income-seeking investors.
Quarterly net profit is ₹235.23 crore, but its profit variation is negative at -25.36%, showing some inconsistency. Still, the strong dividend payout and PSU stability make Shrem InvIT worth watching.
PTC India, a key player in power trading and energy solutions, trades at ₹173.73 and has a market capitalization of ₹5142.55 crore. With a P/E ratio of 8.31, the stock looks fairly priced.
The company’s quarterly profit of ₹242.88 crore and annual profit of ₹533.16 crore indicate steady growth. Though its quarterly sales variation declined by -11.98%, profit growth of 40.94% provides confidence in its earnings power. PTC India is a crucial PSU stock in the energy sector for long-term investors.
Kirloskar Industries, trading at ₹4202.20, commands a strong market cap of ₹4377.81 crore. It has a high P/E of 27.52, showing premium valuations. Its quarterly profit stands at ₹95.48 crore with annual profit at ₹360.72 crore.
Quarterly profit growth of 50.30% is highly encouraging, along with sales of ₹1705.48 crore, which grew by 9.40%. Though ROCE is moderate at 6.72%, the company’s strong fundamentals make it an attractive PSU investment in the industrial sector.
DCB Bank trades at ₹129.16 with a market cap of ₹4070.55 crore. It has a P/E ratio of 6.35, which makes it attractively valued. Quarterly profit is ₹157.26 crore, with an annual profit of ₹535.97 crore.
The bank’s quarterly profit variation is 19.72% and sales growth is 21.78%, showing strong upward momentum. Though ROCE is lower at 7.67%, the bank’s performance makes it a steady PSU stock to keep on the radar.
IRB InvIT Fund trades at ₹62.98 with a market cap of ₹3655.99 crore. With a P/E of 10.83 and a high dividend yield of 12.70%, this stock offers both growth and income.
The company posted a quarterly profit of ₹99.60 crore and annual profit of ₹373.09 crore. With a profit growth of 16.12% and sales growth of 6.21%, IRB InvIT Fund looks promising for investors seeking exposure to India’s infrastructure growth story.
Maithan Alloys, with a CMP of ₹1143.80 and market cap of ₹3329.78 crore, has proven its strength in the metals sector. Its P/E ratio of 4.69 makes it undervalued compared to peers.
The company reported quarterly profits of ₹537.90 crore and annual profits of ₹348.96 crore. Sales rose to ₹632.31 crore with an impressive growth of 68.58%. ROCE stands at 23.26%, one of the highest among the listed PSU stocks. This makes Maithan Alloys one of the strongest PSU bets right now.
The PSU space continues to provide investors with a wide range of opportunities across sectors such as banking, power, fertilizers, and infrastructure. While some stocks like Maithan Alloys and GSFC show strong growth and profitability, others like Shrem InvIT and IRB InvIT Fund attract investors with high dividend yields.
For long-term portfolios, PSU stocks remain important due to their stability, government support, and consistent dividend policies. However, careful selection is crucial as not all PSUs deliver the same growth trajectory. The current data shows that a mix of growth-oriented and dividend-paying PSU stocks can create a balanced and rewarding investment strategy.