India’s Best Public Sector Undertakings 2023

Public Sector Undertakings: Stars of the Growth Show

Preface 

Dear Readers, Welcome to our special edition of the Dalal Street Investment Journal, focused on India’s best public sector undertakings (PSUs) and the potential they offer to investors. In this issue, we present an overview of the top-performing PSUs in India.
 

Over the past year, while the overall market remained subdued, the PSU index outperformed the frontline indices. For instance, Nifty 50 gave a return of 2.56 per cent compared to the 3.95 per cent return generated by Nifty PSE in the same period. Among the PSU sectors, the best-performing sectors were Defence, Power, and Banks, while the energy sector was the worst. Three out of the top five best-performing Mid-Cap companies in the past year were from the PSU sector, including Union Bank of India, Bank of India, and Hindustan Aeronautics.
 

PSUs play a crucial role in India’s economic growth and development by creating jobs and providing essential goods and services to the nation. Many PSUs have become leaders in their respective industries, competing with private sector companies on an equal footing.
 

One of the primary advantages of investing in PSUs is their stability and reliability. These companies are owned and managed by the government, subject to strict regulations and oversight, ensuring that they follow ethical and transparent business practices that inspire confidence among investors. Furthermore, PSUs typically have a long-term vision and are less susceptible to short-term market fluctuations, resulting in stable returns and some of the best dividend yields.
 

In this edition, we profile some of India’s best-performing PSUs in the energy, banking, and manufacturing sectors. We analyse their financials, growth prospects, and future plans to help you make informed investment decisions.
 

We hope that this edition provides valuable insights into the world of PSUs and why investing in them can be a rewarding experience. We welcome your feedback and suggestions on how we can further improve our coverage of this critical sector.
 

Best Regards
The Editorial Team