Top 5 PSU Stocks to Consider Investing In 2024 Based on Analyst Ratings

Public Sector Undertakings (PSUs) are companies in which the Indian government owns at least 51% of the shares. These companies play an important role in India's economic growth as they are active in several critical industries like energy, banking, insurance, and infrastructure.
 

These PSU stocks generate stable returns and allow investors to gradually build wealth. Also, since the government controls these companies, they focus on serving the country's needs rather than just making profits. In this article, let’s check out the 5 PSU stocks you can consider while investing.

• PSUs are owned at least 51% by the Indian government.
• They focus on public welfare and generate steady returns.
• Some of the good PSU stocks as per analyst ratings are NTPC, NHPC, ONGC, Power Grid Corp., and Coal India.
• All these companies are profitable and have shown strong financial growth.

To help with investment decisions, we have compiled a list of PSU stocks based on "BUY" ratings from analysts in the I/B/E/S (Institutional Broker's Estimate System) database. These ratings reflect the opinions of various stock market experts on whether these stocks are a good buy.
 

However, investors are encouraged to perform their own research before investing. Ideally, they should pick stocks as per their risk appetite and investment preferences. To give you a fair idea, let’s see some of these PSU stocks:
 

1. NTPC

(Data as of September 24, 2024)
 

NTPC Ltd. was established in 1975 and is a large-cap company in the power sector. The company primarily generates electricity and earns revenue through consultancy services and lease rentals. For the quarter ending June 30, 2024, NTPC reported a consolidated total income of Rs. 48,981.68 crore. This figure represents a slight increase of 0.34% from the previous quarter's income of Rs. 48,816.55 crore. Additionally, it represents a significant growth of 12.89% compared to the same quarter last year, when total income was Rs. 43,390.02 crore. When it comes to profitability, the company achieved a net profit after tax of Rs. 4,772.11 crore.
 

2. NHPC
 

(Data as of September 24, 2024)
 

NHPC Ltd. was founded in 1975. This PSU stock operates in the power sector. The company generates revenue primarily from “electricity production”. Besides, it also has other income sources like:
 

• Lease rentals
• Project development
• Contract revenue
   

For the quarter ending June 30, 2024, NHPC reported a consolidated total income of Rs. 3,037.92 crore. This marked a significant increase of 30.93% compared to the previous quarter's income of Rs. 2,320.18 crore. Additionally, NHPC recorded a net profit after tax of Rs. 1,107.75 crore.

3. Coal India
 

(Data as of September 24, 2024)
 

Coal India Ltd. was established in 1973 and is a large-cap company in the mining sector. The company primarily generates revenue from “coal sales”. For the quarter ending June 30, 2024, Coal India reported a consolidated total income of Rs. 38,349.21 crore, which is a decrease of 3.29% from the previous quarter's income of Rs. 39,654.50 crore.
 

However, this figure shows an increase of 2.21% compared to the same quarter last year. Also, the company reported a net profit after tax of Rs. 10,858.15, which shows the company’s strong profitability despite the income decline.
 

4. Oil and Natural Gas Corporation (ONGC)
 

(Data as of September 24, 2024)
 

ONGC was founded in 1993 and is a large-cap company in the gas and petroleum sector. Some of its main products are:
 

• Crude oil
• Naphtha
• Natural gas
• Aviation turbine fuel
   

For the quarter ending June 30, 2024, ONGC reported a total income of Rs. 1,69,562.26 crore. This represents a slight decrease of 0.18% from the previous quarter's income. The company also reported a net profit after tax of Rs. 10,020.58 crore for the latest quarter.
 

5. Power Grid Corporation

(Data as of September 24, 2024)
 

Power Grid Corporation of India Ltd. was founded in 1989. It is a large-cap company, which primarily earns revenue from “electricity transmission”. For the quarter ending June 30, 2024, Power Grid reported a consolidated total income of Rs. 11,279.59 crore. This shows an 8.34% decline from the previous quarter's income. This PSU stock operating in the power sector has reported a strong net profit after tax of Rs. 3,694.90 crore.