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India PSU Stocks — Government Capex Dividend Plays

India's Public Sector Undertakings (PSUs) are undergoing a structural re-rating. Government capex targets of ₹11 Lakh Crore, dividend mandates, and divestment optionality have made PSU stocks one of the best-performing buckets of 2023–2024. Power, defence, infra, and energy PSUs lead.

Govt Capex FY26₹11.1 Lakh Cr
PSU Index 2023 Return+75%
PSU Dividend Yield2–5%
CPSE ETF AUM₹40,000 Cr+

Stocks in this theme · India PSU stocks

19 companies in this theme — showing top 12 by dividend yield.

SymbolCompanyPriceDiv YieldMkt CapROE
COALINDIACoal India Ltd₹428.46.3%₹2,62,162 Cr97.4%
RECLTDREC Ltd₹360.655.0%₹94,427 Cr20.1%
IOCIndian Oil Corporation Ltd₹142.035.0%₹1,97,627 Cr19.2%
ONGCOil & Natural Gas Corpn Ltd₹251.94.8%₹3,17,966 Cr10.2%
GAILGAIL (India) Ltd₹173.014.3%₹1,12,599 Cr9.6%
NMDCNMDC Ltd₹83.344.0%₹72,532 Cr23.4%
BANKBARODABank of Baroda₹245.753.5%₹1,25,561 Cr13.8%
CANBKCanara Bank₹126.463.3%₹1,13,565 Cr18.1%
POWERGRIDPower Grid Corporation of India Ltd₹289.33.1%₹2,68,229 Cr16.6%
PNBPunjab National Bank₹110.732.7%₹1,26,537 Cr12.5%
OILOil India Ltd₹451.152.5%₹74,255 Cr9.5%
IRFCIndian Railway Finance Corporation Ltd₹87.392.4%₹1,13,905 Cr12.8%

Research Coverage

  • Top 20 PSU stocks by FY25 capex allocation
  • Defence PSU order book tracker: HAL, BEL, BHEL, GRSE
  • Power PSU: NTPC, Power Grid, NHPC return on equity trajectory
  • PSU divestment watchlist: candidates and timelines

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Frequently Asked Questions

Are PSU stocks good for long-term holding?

Select PSUs in high-capex sectors (defence, power, infra) are excellent long-term holds. PSU banks and legacy manufacturing have more governance risk.

What is CPSE ETF?

Central Public Sector Enterprises ETF — tracks Nifty CPSE index with 10 major PSU companies. Offers a diversified, low-cost PSU basket.