Overview

All 18 government-owned companies profiled here trade below ₹100, and six sit under ₹50: UCO Bank, Punjab & Sind Bank, Central Bank of India, IOB, MTNL and Andrew Yule. IRFC (₹74.7), NHPC (₹73.0) and NMDC (₹71.8) are among the biggest, with market caps of ₹97,819 Cr, ₹73,319 Cr and ₹63,125 Cr. Prices are Screener closing prices from 25 September to 9 October 2026. A low share price does not mean a small company. This guide gives one data table, a short analysis of each stock with growth triggers and risks, and a look at downturns, disinvestment and dividends. Canara Bank (₹120) and Bank of India (₹134) no longer fit a “under ₹100” list.

What Are Government Penny Stocks?

Government company penny stocks are low-priced shares of companies where the central or a state government is the major shareholder, mostly PSU banks, power producers and miners. The government shares list on NSE is long, but only some names trade below ₹100. There are also government penny stocks under 10 rupees. Price alone is a weak filter. IRFC is priced like a penny stock yet has a market cap near ₹98,000 Cr, while MTNL’s is under ₹1,500 Cr. Check size, debt and profits before the price.

Top Government Penny Stocks in India: Latest List and Price

Company	Sector	Mkt Cap (₹ Cr)	CMP (₹)	P/E	P/B	ROE (%)	Div Yield (%)	52W High/Low (₹)
IRFC	Railway finance	97,819	74.7	13.6	1.72	12.8	2.81	137 / 74.1
IDBI Bank	Banking	93,664	87.1	10.1	1.37	14.1	0.00	118 / 61.0
NTPC Green Energy	Renewable power	78,028	92.6	129	4.12	2.8	0.00	120 / 84.0
NHPC	Hydro power	73,319	73.0	19.3	1.77	9.3	2.21	87.8 / 68.7
Bank of Maharashtra	Banking	63,963	83.2	8.5	1.79	22.6	2.65	94.5 / 54.7
NMDC	Mining	63,125	71.8	8.5	1.86	23.4	4.87	97.5 / 70.1
IOB	Banking	58,502	30.4	9.8	1.50	15.6	0.00	41.8 / 30.1
UCO Bank	Banking	29,154	23.2	11.8	0.94	8.5	1.89	34.2 / 22.2
Central Bank of India	Banking	27,426	30.3	6.0	0.67	11.9	3.96	40.9 / 29.3
SJVN	Hydro power	21,319	54.2	33.4	1.50	4.6	2.77	91.4 / 54.0
NBCC	Construction	20,104	74.5	29.4	6.7	20.4	1.34	126 / 73.9
IFCI	Financial services	18,143	67.4	101	2.03	2.0	0.00	108 / 46.2
Punjab & Sind Bank	Banking	14,901	21.0	10.8	1.02	9.6	1.86	32.5 / 20.5
MMTC	Trading	8,138	54.3	40.4	3.85	-14.3	0.00	78.4 / 50.1
National Fertilizers	Fertilizers	3,132	63.8	8.6	1.10	7.5	1.63	98.4 / 62.8
HMT	Engineering	2,071	58.2	NA	NM	NA	0.00	73.0 / 41.0
MTNL	Telecom	1,443	22.9	NA	NM	NA	0.00	44.7 / 20.3
Andrew Yule	Diversified	1,320	27.0	NA	4.06	-24.0	0.00	32.8 / 15.5

*Source: Jainam and Screener, consolidated figures. P/B is price divided by book value per share. NA means Screener shows no figure, and NM means not meaningful because book value is negative. Prices move daily, so check the live quote.

Detailed Analysis of Government Company Penny Stocks

IRFC

IRFC is the financing arm of Indian Railways. It earned ₹7,009 Cr on ₹27,285 Cr of sales in FY26, a margin near 26%, against borrowings of ₹4,36,471 Cr.

Growth triggers: Railway capex keeps its loan book growing, and the dividend yield is 2.81%. 

Key risks: ROCE is just 5.64%, and the price has slid from ₹137 to near its low of ₹74.1.

IDBI Bank

IDBI reported a FY26 profit of ₹9,237 Cr and ROE of 14.1%. Promoters hold 94.72%, and it pays no dividend now.

Growth triggers: Strong profits and a P/E near 10. 

Key risks: A stake sale could pressure the price, and NPA data is not shown in the source.

NTPC Green Energy

The renewable arm of NTPC made a ₹521 Cr profit on ₹2,858 Cr of sales in FY26, with borrowings of ₹31,716 Cr.

Growth triggers: New solar and wind capacity as it scales. 

Key risks: ROE is 2.79%, the P/E is 129 and the price is 4.1 times book, so growth is already priced in.

NHPC Ltd.

NHPC generates hydropower under regulated tariffs. For FY26 it reported sales of ₹11,615 Cr and a profit of ₹4,220 Cr, with borrowings of ₹52,327 Cr.

Growth triggers: Steady tariff cash flows, plus capacity from new hydro plants. 

Key risks: ROCE is only 5.75%, debt is heavy, and hydro projects often run late.

Bank of Maharashtra

The bank reported a FY26 profit of ₹7,017 Cr and ROE of 22.6%. In June 2026 gross NPA was 1.45% and net NPA 0.13%, among the cleanest numbers here.

Growth triggers: Clean asset quality leaves room for loan growth. 

Key risks: At 1.79 times book it is dearer than Central Bank of India, and the stock has already risen from ₹54.7.

NMDC Ltd.

NMDC is one of India’s main iron ore producers and also runs the Panna diamond mine. It earned ₹7,450 Cr on ₹32,071 Cr of sales in FY26, a margin near 23%, with borrowings of only ₹6,407 Cr.

Growth triggers: Rising steel demand and higher ore volumes.

Key risks: Iron ore prices swing, and the stock sits near its low of ₹70.1.

Indian Overseas Bank (IOB)

IOB made a consolidated profit of ₹5,418 Cr in FY26, with ROE of 15.6%. It pays no dividend at present.

Growth triggers: Steady profits could lead to payouts and a better valuation. 

Key risks: The government holds 92.44%, so a stake sale could weigh on the price.

UCO Bank

UCO trades at 0.94 times book. The latest annual profit on Screener is ₹2,468 Cr for FY25, and the most recent NPA data shown (March 2025) was 2.69% gross and 0.50% net.

Growth triggers: A discount to book and a 1.89% dividend yield. 

Key risks: ROE is 8.5%, promoters hold 90.95%, and the NPA figures are dated.

Central Bank of India

FY26 profit was ₹4,531 Cr, and the stock trades at 0.67 times book. Gross NPA was 2.61% in June 2026.

Growth triggers: Falling bad loans would justify a higher multiple, and the yield is 3.96%. 

Key risks: NPAs are above Bank of Maharashtra’s, and the government holds 81.19%.

SJVN Ltd.

SJVN is a hydro and renewable power producer. It made ₹642 Cr on ₹4,528 Cr of sales in FY26, but borrowings are ₹32,278 Cr.

Growth triggers: New capacity and a 2.77% yield. 

Key risks: ROE is 4.58%, debt is about seven times sales, and the stock sits at its 52-week low.

NBCC (India) Ltd.

NBCC executes government construction work. It made ₹742 Cr on ₹12,889 Cr of sales in FY26, a margin under 6%, with ROE of 20.4%.

Growth triggers: A public project pipeline. Check the order book in its latest filing. 

Key risks: At 6.7 times book it has the highest price-to-book ratio here, and it relies on government contracts.

IFCI Ltd.

IFCI is a government-owned financier. It made ₹435 Cr on ₹2,077 Cr of revenue in FY26, with ROE of just 1.97%.

Growth triggers: The stock has recovered from a low of ₹46.2 as profits returned. 

Key risks: A P/E of 101 on thin returns, and no dividend.

Punjab & Sind Bank

The bank earned a FY26 profit of ₹1,322 Cr and trades near book value at 1.02 times, with a 1.86% yield.

Growth triggers: Improving profits from a small base. 

Key risks: ROE is 9.62%, promoters hold 93.85%, and the price is close to its low of ₹20.5.

MMTC Ltd.

MMTC trades metals and commodities, but FY26 sales were just ₹2 Cr. The ₹387 Cr profit came from ₹826 Cr of other income, while operating profit was negative.

Growth triggers: A genuine revival in trading volumes. 

Key risks: The P/E of 40.4 rests on non-operating income, and ROE is -14.3%.

National Fertilizers Ltd.

NFL is a fertilizer producer. It made ₹211 Cr on ₹21,519 Cr of sales in FY26, a margin near 1%, at 1.10 times book.

Growth triggers: Steady demand and a P/E of 8.6. 

Key risks: Razor-thin margins and ROE of 7.47%. Fertilizer earnings depend on government subsidy policy.

HMT Ltd.

HMT is an engineering company. It posted a ₹132 Cr loss on ₹143 Cr of sales in FY26, with negative book value and borrowings of ₹1,033 Cr.

Growth triggers: Only a turnaround or government support. 

Key risks: Losses, debt and 93.69% promoter holding.

Mahanagar Telephone Nigam Ltd. (MTNL)

MTNL posted a ₹3,107 Cr loss on ₹956 Cr of sales in FY26. Borrowings of ₹35,445 Cr are over 35 times sales, and book value is negative.

Growth triggers: Only government support or restructuring. 

Key risks: Heavy debt and losses. Treat it as speculative.

Andrew Yule & Company Ltd.

Andrew Yule has tea, engineering and electrical businesses. FY26 sales were ₹295 Cr with a ₹19 Cr loss, and ROE is -24.0%.

Growth triggers: A turnaround in its core units. 

Key risks: Losses, a small base and a price at 4 times book. Its data (25 September) is the oldest here.

Performance During Market Downturns and Rate Cycles

Government ownership is a cushion, not immunity. In past stress years the government recapitalised weak PSU banks, which kept them running. That kind of support helped lenders like the Central Bank of India and IOB stay in business. There should not be an assumption of best PSU stocks in India. It does not fix inefficiency. MTNL and HMT have had government backing for years, yet both have negative book value.

Rate cycles matter too. Falling rates ease the interest bill of debt-heavy firms like IRFC and NHPC, but they can squeeze bank margins.

Disinvestment and Restructuring Triggers

The government company penny stocks have a lot to sell. 

Eight of these stocks show promoter holding of 89% or more: 

• IDBI (94.72%), 
• Punjab & Sind Bank (93.85%), 
• HMT (93.69%), IOB (92.44%), 
• UCO Bank (90.95%), 
• MMTC (89.93%), 
• Andrew Yule (89.25%) 
• NTPC Green (89.01%). 

Listed companies generally need at least 25% public shareholding.

A stake sale adds shares to the market and often pushes the price down in the short run. Over time, it can widen the investor base and improve liquidity. Recapitalisation and balance sheet clean-ups usually help valuations, but only when the business earns money.

High-Dividend Yield PSU Penny Stocks

PSU penny stocks include NMDC leads with a 4.87% yield, followed by Central Bank of India (3.96%), IRFC (2.81%) and SJVN (2.77%). These are Screener figures at current prices.

Handle yield with care. It rises when the price falls, so a high number can signal trouble. Check profits, payout history and debt first. Eight stocks on this list pay nothing at all.

How to Choose and Buy Government Penny Stocks

Start with profit, debt and ROE, then see how much the government holds and whether the stock trades enough volume to exit easily. Low-priced PSU shares can be thinly traded.

Want to invest in government PSU stocks? You can open a free demat account with Jainam to get started.

Final Key Takeaways

• All 18 stocks trade below ₹100, but market caps run from ₹1,320 Cr to ₹97,819 Cr.
• NMDC and Bank of Maharashtra show the strongest returns, with ROE above 22%.
• MTNL, HMT, MMTC and Andrew Yule carry losses or weak operations, so risk is high.
• Government backing helps in a crisis but does not guarantee profits.
• Stake sales can move prices both ways, so watch holding levels.
• Check dividends alongside profits, not instead of them.