Top 12 stocks with majority stake held by the government

Stocks in government-owned companies, also called Public Sector Undertakings (PSUs) are considered stable and lucrative investments. This is because the central or state government holds a majority stake in a PSU. The country’s economic development is also positively correlated with the activities and performance of PSUs because they play a key role in the core sectors such as infrastructure, power, finance, capital goods, coal, oil, etc.

Here’s a look at the best stocks to buy in India for short term. This list includes companies based on their market capital size and not their financials.

Here are some of the best stocks to buy in India for short term:

  1. ONGC
  • Oil and Natural Gas Corporation Limited (ONGC) is the top oil exploration company in India with a market cap of around Rs. 1.9 lakh crore.
  • It’s owned by the Ministry of Petroleum and Natural Gas, Government of India (GOI).
  • It contributes to around 71% of India’s domestic production and produces over 1.26 million barrels of oil equivalent per day. ONGC’s Price-to-earnings (P/E) ratio is at 8.70.
  1. Power Grid
  • Power Grid Corporation of India is a leading power generation and distribution company.
  • The market cap of the organisation is around Rs. 1.2 lakh crore.
  • The PE ratio of the company owned by the Ministry of Power, GOI, is at 7.80.
  1. NTPC
  • NTPC stands for National Thermal Power Corporation Limited and, like Power Grid, it is a power generation and distribution company also under the jurisdiction of the Ministry of Power.
  • Its PE ratio stands at 9.34 with a market cap of about Rs. 1.3 lakh crore.
  • The organisation is engaged in the generation of electricity apart from other allied activities.
  1. Indian Oil
  • Indian Oil Corporation Limited (IOCL) is one of the Fortune 500 companies owned by the Ministry of Petroleum and Natural Gas, GOI.
  • The market cap is around Rs. 1.25 lakh crore and the PE ratio is about 4.87.
  • It is one of the highest-ranked PSUs as it owns about 29,000+ fuel stations in the rural market.
  1. Bharat Petroleum
  • Another one of the leading refineries is Bharat Petroleum Corporation Limited (BPCL) with a market cap of about Rs. 92,000 crore with a PE ratio of 5.17.
  • It has two of its biggest refineries in Mumbai and Kochi.
  1. Coal India
  • Coal India is the largest coal-producing organisation in the world – ownership is with the Union Government of India while operations are handled by the Ministry of Coal.
  • The company distributes about 80% of its total production in the domestic market and has a market cap of around Rs. 1 lakh crore with a PE of 7.47.
  1. GAIL
  • Responsible for the processing and distribution of natural gas in India, Gail is owned by the Ministry of Petroleum and Natural Gas, GOI.
  • It has a PE ratio of 7 and a market cap of around Rs. 66,000 crore.
  1. Bharat Electronics
  • Ministry of Defence in India has administrative control of Bharat Electronics Limited (BEL).
  • It carries the work of manufacturing engineering and industrial equipment for aerospace applications.
  • PE trades at 23.74 and the market cap currently is around Rs. 54,000 crore.
  1. SAIL
  • Steel Authority of India is regarded as SAIL. It is an iron and steel products-based company trading with a PE ratio of 3.68 and having a market cap of Rs. 48,000 crore.
  • The ownership lies with the Ministry of Steel, GOI.
  1. NMDC
  • National Mineral Development Corporation (NMDC) has its core operations in the mineral and mining industry, and like SAIL, its ownership lies with the Ministry of Steel, GOI.
  • The market cap is at around Rs. 41,000 crore and PE of 4.69.
  1. CONCOR
  • Container Corporation of India (CONCOR) was set up with the objective of containerising cargo transportation. It’s owned by the Ministry of Railways, GOI.
  • It has a market cap of Rs. 41,000 crore and a PE ratio of 54.18.
  • Its core business includes terminal operator, cargo carriers, warehouse operator, etc.
  1. Hindustan Petroleum
  • Hindustan Petroleum Corporation Limited (HPCL) holds a large share of about 18% in the Indian market of refining and marketing petroleum products.
  • It has a market cap of about Rs. 49,000 crore and its stocks trade at a PE of 5.26.

Now that you know the top PSU stocks to buy, you can narrow down which you want to include in your investment portfolio, based on your financial goals.

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