Government stocks, also known as public sector undertaking (PSU) stocks, have long been a favorite among Indian investors due to their stability and the government’s backing. These companies play a crucial role in the country’s economic development across sectors like energy, banking, infrastructure, and more.
Here’s an overview of the top 10 government stocks in India, their growth in the last one year, government’s stake, and market capitalization:
1. ONGC Ltd. (Oil & Natural Gas Corporation)
- 1-Year Return: 290.72%
- Government Stake: 61.65%
- Market Cap: ₹116,879.90 crore
ONGC, India’s largest oil and gas exploration company, has seen its stock price surge by nearly 291% in the last one year. The government holds a majority 61.65% stake in the company.
2. NTPC Ltd. (National Thermal Power Corporation)
- 1-Year Return: 94%
- Government Stake: 51.10%
- Market Cap: ₹376,229.82 crore
NTPC, India’s largest power generation company, has delivered a 94% return in the last one year. The government owns 51.10% stake in NTPC.
3. Bharat Electronics Ltd.
- 1-Year Return: 151.47%
- Government Stake: 51.14%
- Market Cap: ₹75,550.84 crore
Bharat Electronics, a leading manufacturer of defence electronics and military communication systems, has seen its stock price rise by over 151% in the last one year. The government holds a 51.14% stake in the company.
4. Coal India Ltd.
- 1-Year Return: 73%
- Government Stake: 66.13%
- Market Cap: ₹172,136.46 crore
Coal India, the world’s largest coal mining company, has delivered a 73% return in the last one year. The government owns a majority 66.13% stake in the company.
5. Power Finance Corporation Ltd.
- 1-Year Return: 288.09%
- Government Stake: 55.99%
- Market Cap: ₹55,782.94 crore
Power Finance Corporation, a leading financier of power projects in India, has seen its stock price surge by 288.09% in the last one year. The government holds a 55.99% stake in the company.
6. NHPC Ltd. (National Hydroelectric Power Corporation)
- 1-Year Return: 83%
- Government Stake: 64.16%
- Market Cap: ₹36,329.28 crore
NHPC, a prominent hydropower generation company, has delivered an 83% return in the last one year. The government owns a 64.16% stake in the company.
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7. Indian Railway Finance Corporation Ltd.
- 1-Year Return: 271.35%
- Government Stake: 86.36%
- Market Cap: ₹236,343.93 crore
Indian Railway Finance Corporation, the dedicated financing arm of the Indian Railways, has seen its stock price surge by 271.35% in the last one year. The government holds an 86.36% stake in the company.
8. NMDC Ltd. (National Mineral Development Corporation)
- 1-Year Return: 97.92%
- Government Stake: 68.29%
- Market Cap: ₹68,245.65 crore
NMDC, India’s largest iron producer it has delivered a 97.92% return in the last one year. The government owns a 68.29% stake in the company.
9. NBCC (India) Ltd. (National Buildings Construction Corporation)
- 1-Year Return: 249.34%
- Government Stake: 54.82%
- Market Cap: ₹31,975.20 crore
NBCC, a leading construction and engineering company, has seen its stock price surge by 249.34% in the last one year. The Government stocks holds a 54.82% stake in the company.
10. Oil India Ltd.
- 1-Year Return: 290.72%
- Government Stake: 56.66%
- Market Cap: ₹116,879.90 crore
Oil India, a major oil and gas exploration and production company, has delivered a 290.72% return in the last one year. The government owns a 56.66% stake in the company.
These top 10 government stocks have not only outperformed the broader market but also generated significant returns for investors in the last one year. The government’s majority stake in these companies and their dominant market positions have contributed to their strong performance.
Government stocks and Profitability
The Indian Government stocks holds a major part of stake in these PSUs, ranging from around 51% to 100% ownership. These government-owned companies have been contributing significantly to the country’s economic growth and the government’s revenue.
For example, in the case of Coal India Ltd., the Government stocks holds an 83.9% stake, and the company has consistently been one of the most profitable PSUs, with an average net profit margin of around 15% over the past 5 years.
Similarly, NTPC Ltd., the largest power generation company in India, is 54.99% owned by the government and has maintained a healthy average net profit margin of around 13% in the last 5 years.
The Government stocks in these companies not only provides a steady stream of dividends but also allows it to exercise control over strategic sectors and implement policies that align with its overall economic agenda.