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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
SBINState Bank of India₹1,025.35₹9,46,597 Cr
COALINDIACoal India₹428.25₹2,63,888 Cr
NTPCNTPC₹350.55₹3,39,868 Cr
POWERGRIDPower Grid Corporation of India₹289.35₹2,69,532 Cr
ONGCOil and Natural Gas₹251.9₹3,15,936 Cr
IOCIndian Oil₹141.85₹2,00,254 Cr
BELBharat Electronics₹406.8₹2,97,362 Cr
HALHindustan Aeronautics₹4,578.95₹3,05,819 Cr
PFCPower Finance₹412.3₹1,36,014 Cr
RECLTDREC₹360.6₹94,967 Cr
GAILGAIL (India)₹173.1₹1,13,906 Cr
BHELBharat Heavy Electricals₹416.3₹1,45,011 Cr

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.