Historically, PSU stocks, or shares of government-owned companies, were largely overlooked by investors due to slow growth, political interference, and modest returns. However, these stocks have made remarkable comebacks in recent times. Several multibagger PSU stocks even delivered returns exceeding 200%, restoring the confidence of long-term investors.
In this article, we will highlight 10 such PSU stocks that have generated impressive profits and are expected to continue performing well in the coming years.
What Makes a PSU Stock a Multibagger ?
A PSU stock qualifies as a multibagger when its robust financial fundamentals, consistent profitability, and strategic market opportunities result in its stock price appreciating several times over the initial investment. Such growth is typically influenced by factors like strong earnings growth, government support, sectoral tailwinds, and operational efficiency. Lets look at these factors in detail.
- Government reforms and policies : The government is now providing professional management to private-like PSUs. Disinvestment, delisting and better governance are increasing the growth and profitability of companies.
- Sector support : There is huge government spending in sectors like defense, railways, energy and infrastructure. Stocks like HAL, BEL, IRFC are benefiting from this.
- Strong balance sheet and high dividend : Most PSU companies are debt-free and give large dividends as returns – like Coal India or NTPC. This gives investors a double benefit in returns.
- Growth hidden in valuations : Many PSU stocks are available at cheap valuations due to being ignored for a long time. As soon as the company shows improvement, investors’ confidence returns and the share price rises rapidly.
- Long-term perspective : It takes time to become a multibagger. Investors who have been patient have earned multifold returns even in PSUs.
10 Multibagger PSU Stocks Based on Market Capitalisation
| Company | Current Market Price (in ₹) | Market Capitalisation (in ₹ crore) | 52-Week High (in ₹) | 52-Week Low (in ₹) |
|---|---|---|---|---|
| Hindustan Aeronautics Ltd (HAL) | 4,409 | 2,94,863 | 5,166 | 3,046 |
| Bharat Electronics Ltd (BEL) | 367 | 2,68,013 | 436 | 240 |
| Coal India Ltd | 375 | 2,31,287 | 542 | 349 |
| Indian Railway Finance Corp (IRFC) | 122 | 1,59,893 | 183 | 108 |
| Power Finance Corporation (PFC) | 393 | 1,29,562 | 566 | 357 |
| Mazagon Dock Shipbuilders | 2,710 | 1,09,334 | 3,778 | 1,918 |
| NHPC Ltd | 79.9 | 80,220 | 100 | 71 |
| BEML Ltd | 3,884 | 16,173 | 4,875 | 2,346 |
| Engineers India Ltd (EIL) | 195 | 10,949 | 255 | 142 |
| Shipping Corporation of India | 212 | 9,882 | 277 | 138 |
Read Also: Multibagger Penny Stocks
Overview of the 10 Multibagger PSU Stocks in India
A brief overview of the Multibagger PSU Stocks in India is given below:
1. Hindustan Aeronautics Ltd (HAL)
Hindustan Aeronautics Ltd i.e. HAL is the name of India’s air power which has been the backbone of our fighter planes and helicopters for decades. This company not only manufactures modern fighter jets like Tejas, but also specializes in aircraft maintenance, upgrades and support systems. HAL’s network is spread across the country and it is also continuously promoting defense exports. Under ‘Make in India’, HAL has emphasized on indigenous aircrafts and technologies, which has strengthened both India’s strategic power and self-reliance.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -8.26 | 287.18 | 647.52 |
2. Bharat Electronics Ltd (BEL)
Bharat Electronics Ltd i.e. BEL is a strong name in the country’s defense technology. This company manufactures radar systems, missile guidance, and communication devices for the army. The special thing is that BEL is no longer limited to just the defense sector – it is also working on civil projects such as smart city solutions, medical devices and election systems (such as EVM). The company is constantly researching new technologies and strengthening ‘Make in India’. Today BEL has become an important link in the direction of India’s technological self-reliance.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 19.54 | 259.95 | 883.1 |
3. Coal India
Coal India is not just a company, it is the backbone of the country’s energy needs. This is the same name that has been continuously supplying coal to thermal power plants and large industries in India for years. It has many units spread across the country which handle work from mining to transportation. Today, when the country talks about energy security, Coal India is at the forefront. The company has improved mining methods in the last few years, has also taken care of the environment and has made the work better by adopting technology.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -30.17 | 63.4 | 164.73 |
4. Indian Railway Finance Corporation (IRFC)
IRFC is the financial backbone of Indian Railways. This company works to raise and manage funds for railway projects. Whether it is the purchase of new trains, expansion of infrastructure or financing of mega projects IRFC is engaged in strengthening the railways silently. It comes under the Ministry of Railways and is a fully government-owned company. In 2025, when the modernization of railways is gaining momentum, the role of IRFC has become even more important as it is making this growth possible economically.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -32.45 | 475.53 | 392.15 |
5. Power Finance Corporation (PFC)
Power Finance Corporation is an important financing company for India’s power sector. This company provides long-term loans and financial assistance to power projects, increasing the capacity of power distribution and generation across the country. PFC is playing an active role in turning the government’s ’24×7 electricity’ mission into ground reality. The company’s network is spread across the country and it has access to large power developers. By 2025, PFC is also increasing investment in areas like green energy, renewable sources and grid upgrades.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -23.6 | 307.23 | 396.34 |
6. Mazagon Dock Shipbuilders
Mazagon Dock Shipbuilders is India’s leading government shipbuilding company, which builds warships and submarines especially for the Navy. Many state-of-the-art ships are built in this yard located in Mumbai, which increases the strength of the Indian Navy. Mazagon Dock is not limited to just construction, but is also fully capable of design, testing and maintenance. In recent years, the company has focused on indigenous technology and self-reliant defense projects. By 2025, Mazagon Dock has established itself as a strategic and futuristic PSU.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| 25.73 | 1,430.98 | 3,030.64 |
7. NHPC Ltd
NHPC i.e. National Hydroelectric Power Corporation is India’s largest hydro power company. This company is running large hydroelectric projects in the hilly and river-dominated areas of the country. NHPC’s work is not limited to power generation only, but it also focuses on sustainable use of water sources and environmental balance. In 2025, NHPC has emerged as a leading PSU in clean energy and environment-sensitive power generation, a strong partner towards making India energy self-reliant.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -16.87 | 125.77 | 260.72 |
8. BEML Ltd
BEML i.e. Bharat Earth Movers Limited, is a multi-sector PSU that manufactures heavy machinery for defense, mining and railway sectors. From tanks to railway coaches and metros BEML’s products are being used in every corner of the country. The company is headquartered in Bengaluru and focuses on indigenous manufacturing and technological self-reliance. In 2025, BEML has proven itself as a fast-growing PSU with new contracts and export orders in the defense and infrastructure sectors.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -0.84 | 165.53 | 595.42 |
9. Engineers India Ltd (EIL)
Engineers India Ltd is a government company that provides engineering, design and consultancy services for oil-gas and infrastructure projects. Be it a refinery or a petrochemical plant, a pipeline project or a city gas network — EIL’s expertise is visible everywhere. The company is taking up projects not only domestically but also internationally. By 2025, EIL has also started working on green energy and climate-sensitive projects, further strengthening its identity as a modern, responsible and technology-enabled PSU.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -8.92 | 186.98 | 178.57 |
10. Shipping Corporation of India (SCI)
Shipping Corporation of India i.e. SCI is India’s leading merchant navy company providing marine freight, tanker service and offshore support services. Its services are spread across the country as well as internationally. SCI is playing an important role in increasing India’s maritime trade capacity. In recent years, the company has upgraded its fleet and adopted digital technology. By 2025, SCI is taking itself in a new direction by moving from public to private transition and better management.
Know the Returns:
| 1Y Return (%) | 3Y Return (%) | 5Y Return (%) |
|---|---|---|
| -22.65 | 83.42 | 237.95 |
Key Performance Indicators (KPIs)
The key performance metrics of Multibagger PSU Stocks are mentioned below:
| Company | Operating Margin (%) | Net Profit Margin (%) | ROE (%) | ROCE (%) | Debt to Equity |
|---|---|---|---|---|---|
| Hindustan Aeronautics Ltd (HAL) | 34.95 | 26.86 | 23.91 | 17.41 | 0.00 |
| Bharat Electronics Ltd (BEL) | 29.90 | 22.24 | 26.64 | 33.72 | 0.00 |
| Coal India Ltd | 33.05 | 24.30 | 35.67 | 24.24 | 0.09 |
| Indian Railway Finance Corp (IRFC) | 99.42 | 23.94 | 12.34 | 49.98 | 7.83 |
| Power Finance Corporation (PFC) | 96.99 | 28.65 | 19.52 | 65.86 | 8.25 |
| Mazagon Dock Shipbuilders | 26.82 | 19.92 | 30.39 | 34.5 | 0.00 |
| NHPC Ltd | 54.68 | 32.84 | 7.57 | 6.21 | 0.99 |
| BEML Ltd | 11.38 | 7.27 | 10.13 | 11.43 | 0.08 |
| Engineers India Ltd (EIL) | 20.49 | 15.28 | 21.72 | 23.44 | 0.00 |
| Shipping Corporation of India | 17.97 | 14.50 | 10.14 | 10.00 | 0.23 |
Read Also: List Of Best PSU Stocks in India
Factors to be Considered Before Investing in PSU stocks
The opportunity to invest in Multibagger PSU stocks is definitely big, but every opportunity also comes with some risk and requires prudence. Paying attention to the points given below is the mark of a smart investor:
- Understand the role of the company and the situation of the sector : Every PSU works in a different sector – like energy, defense, infrastructure or finance. Before investing, it is important to understand what is the policy support of that sector and what is the growth potential in it in the coming years.
- Do not take a decision just by looking at past returns : PSU stocks have performed well in recent years, but investing just by looking at old charts can be wrong. It is important that you see whether the company has a solid basis to move forward or not – like new order book, project pipeline and policy support.
- Government involvement and disinvestment policy : PSU companies have a government stake, which can sometimes lead to political decisions rather than commercial ones. While the disinvestment policy has proved beneficial for many companies — it is important to be clear about its timing and impact.
- Check valuations properly : PSU stocks may look cheap, but their valuations may also be down due to poor business outlook or fundamentals. Invest keeping in mind the PE ratio, book value and future earnings.
- Policy and regulatory risks : Public companies are often affected quickly by policy changes — such as tax policies, licensing or environmental regulations. Therefore, it is important that you also evaluate the company’s business model from the perspective of these risks.
- Understand the dividend and return structure : PSU stocks often pay high dividends, which is good for long-term income. But sometimes companies only pay dividend-based income and growth is low. Understand this balance of returns before investing.
- Have a long-term perspective : Multibagger PSU stocks are not created overnight. They take time — sometimes up to 2–4 years. So if you are expecting quick returns, this strategy is not for you. Only patience and understanding can yield true profits.
Read Also: Top 5 PSU Penny Stocks List in India
Conclusion
Investing in PSU stocks can be rewarding if approached with thorough research and a disciplined, long-term strategy. Public sector companies are becoming increasingly attractive due to strong order books, improved corporate governance, and government policy support. However, each stock should be evaluated carefully based on its sector performance, valuation metrics, and growth potential. For investors with a long-term perspective, PSU stocks have the potential to generate substantial returns. It is advised to consult a financial advisor before investing.
| S.NO. | Check Out These Interesting Posts You Might Enjoy! |
|---|---|
| 1 | List Of Best Battery Stocks in India |
| 2 | 10 Best Penny Stocks with High FII Holding |
| 3 | Why Are PSU Stocks Falling? |
| 4 | Best Pharma Penny Stocks List Under ₹50 |
| 5 | 5 Top EV Penny Stocks in India |
Frequently Asked Questions (FAQs)
What are multibagger PSU stocks?
These are the stocks of government companies that have the potential to give multifold returns over time.
Are PSU stocks safe for beginners?
Yes, but it is important to understand the company’s position and sector well before investing.
How long should I hold a multibagger PSU stock?
It is better to have a 3 to 5 year perspective in such stocks.
Do PSU stocks give good dividends?
Yes, most PSU companies pay regular and high dividends.
What risks are involved in PSU stock investment?
Risks may include policy changes, political interference and disinvestment.
