Investing in government stocks can be a great way to gain exposure to stable and well-backed companies. These stocks belong to Public Sector Undertakings (PSUs) and other government-controlled enterprises, in which the government owns at least a 51% stake, offering a mix of safety and long-term growth potential. Among these, government penny stocks in India attract attention due to their affordability and growth potential. Investing in government stocks can also be a strategic way to generate regular income through dividends from top PSUs.
Penny government stocks are those trading at lower price levels, usually under Rs. 100 or even Rs. 50, making them accessible to retail investors. These stocks belong to the government sector penny stocks category, where companies are partially or wholly owned by the Indian government. Such stocks can offer lucrative returns if chosen wisely. Performance metrics for these stocks, including stock prices, returns, P/E ratios, and market capitalization, are updated as of Oct 01.
Investors often look for the best government shares to buy in India due to their low prices and high potential for appreciation. However, government penny stocks in India come with their risks, such as market volatility and slower price movements. Here are a few reasons why they are worth considering:
For a performance overview and a curated list of the best government stocks, it is important to consider non-banking companies and conduct thorough research before investing.
Government companies traded on the stock market can be broadly categorized into 3 main types based on their ownership: those owned by the central government, those owned by state governments, and public-sector banks. Central Public Sector Undertakings (CPSUs) or Central Public Sector Enterprises are companies in which the central government owns a stake of at least 51%. These companies can operate in strategic sectors such as defense and aerospace or non-strategic areas. Public Sector Banks (PSBs) are another category, with India having a dozen PSBs, most of which are listed on stock exchanges. State-Level Public Enterprises are companies in which a state government holds a majority stake, although there are not many such companies listed on bourses.
Before investing in government sector penny stocks, consider these factors:
Here’s a government penny stocks list featuring ten PSUs currently trading at attractive price points:
Diversified PSU engaged in engineering, electrical, and tea production.
Leading public sector bank providing comprehensive banking and financial services, including retail, corporate, agricultural, and international banking solutions.
A prominent public sector bank offering a wide range of financial services and products, including retail, corporate, SME, and agricultural banking, along with a strong focus on digital banking solutions.
One of the oldest public sector banks in India, offering diverse financial services, including retail, corporate, agricultural, and MSME banking, with a commitment to financial inclusion and digital transformation.
A public sector bank known for its strong international presence, offering a wide range of banking services, including retail, corporate, MSME, and agricultural banking, with a focus on NRI services and digital banking solutions.
A leading public sector enterprise engaged in international and domestic trading of a diverse range of commodities, including minerals, metals, precious metals, agro-products, and fertilizers, playing a pivotal role in India’s export and import activities.
A public sector enterprise providing telecommunications and broadband services in the metropolitan areas of Delhi and Mumbai, offering a range of fixed-line, mobile, and internet services with a focus on digital connectivity and innovation.
A Navratna public sector enterprise specializing in construction, project management, & real estate development, offering services in infrastructure creation, redevelopment of government properties, and sustainable urban solutions.
A leading public sector enterprise focused on the development, operation, and maintenance of hydroelectric power plants, playing a key role in India’s renewable energy sector and contributing to the country’s energy security.
A public sector mining company engaged in the exploration and production of iron ore and other minerals, contributing significantly to the country’s industrial development and serving both domestic and international markets.
Sector: Diversified (Engineering, Electricals, Tea Production)
Market cap: ₹ 1,885 Cr.
About: Andrew Yule & Company Limited is a CPSE in the medium and light engineering sector engaged in the manufacturing of tea, transformers, regulators or rectifiers, circuit breakers, switches, industrial fans, and tea machinery and undertakes turnkey jobs.
Sector: Banking (Public Sector Bank)
Market cap: ₹ 39,527 Cr.
About: The Bank of Maharashtra is engaged in providing banking services. The Bank’s segments include Treasury, Corporate/Wholesale Banking, Retail Banking, and Other banking operations.
Sector: Banking (Public Sector Bank)
Market cap: ₹ 88,784 Cr.
About: Canara Bank was merged with erstwhile Syndicate Bank in FY21.{# Canara was incorporated in 1906 and nationalized in 1969, with 13 other major commercial banks of India, by the GoI. The bank is headquartered in Bangalore. Canara Bank was merged with erstwhile Syndicate Bank (e-SB) on April 1, 2020.
Sector: Banking (Public Sector Bank)
Market cap: ₹ 45,766 Cr.
About: The Central Bank of India is a commercial bank. The Bank’s segments include Treasury Operations, Corporate/Wholesale Banking, Retail Banking & other Banking business. The Treasury Operations segment includes dealing in government and other securities, money market operations & Forex operations.
Sector: Banking (Public Sector Bank)
Market cap: ₹ 95,722 Cr.
About: Indian Overseas Bank was founded in 1937 by Chidambaram Chettyar. It was one of the 14 major banks that were nationalized in 1969.
Sector: reading (Public Sector Enterprise)
Market cap: ₹ 10,720 Cr.
About: MMTC, a public sector undertaking, was incorporated in 1963, to facilitate foreign trade and canalize the export and import of essential minerals and metals in India. It is under the administrative control of the Ministry of Commerce & Industry, and the Government of India and is engaged in trading across minerals, precious metals, metals, agro products, fertilizers & chemicals, and coal & hydrocarbons.
Sector: Telecommunications (Public Sector Enterprise)
Market cap: ₹ 2,950 Cr.
About: Mahanagar Telephone Nigam is engaged in providing telecom services.
Sector: Construction & Real Estate (Public Sector Enterprise)
Market cap: ₹ 25,734 Cr.
About: NBCC (India) Limited is a Navratna enterprise under the Ministry of Housing and Urban Affairs, Government of India. It operates across three key segments: Project Management Consultancy (PMC), Engineering Procurement & Construction (EPC), and Real Estate.
Sector: Power
Market cap: ₹ 80,762 Cr.
About: NHPC, a Mini Ratna Category I public sector enterprise, serves as the Government of India’s leading hydroelectric power generation company. Its core operations focus on generating and supplying bulk power to various utilities. Additionally, NHPC is engaged in project management, construction contracts, consultancy services, and power trading.
Sector: Mining (Public Sector Enterprise)
Market cap: ₹ 58,580 Cr.
About: NMDC is engaged in the exploration & production of Iron Ore along with diamonds, the production & sale of Sponge Iron, generation & sale of Wind Power.
Government policies in India can significantly impact the performance of PSU stocks, particularly in sectors like energy, manufacturing, and renewable energy. Policies aimed at promoting economic growth, infrastructure development, and privatization can positively impact PSU stocks. For instance, the government’s push for renewable energy has benefited PSU companies in the sector. On the other hand, policies that increase regulatory oversight or impose price controls can negatively impact PSU stocks. Investors should keep a close eye on government policies and their potential impact on PSU stocks when making investment decisions.
While the best government stocks to buy can offer great returns, they come with certain risks:
Apart from penny stocks, here are some of the best government stocks in India to buy for long-term gains:
Investing in government stocks can be a smart move if done wisely. Indian government penny stocks provide an opportunity to enter the market at lower prices with high growth potential. However, investors must conduct thorough research, analyze financials, and stay updated with government policies to make informed decisions.
For expert guidance in selecting the best government stocks to buy, investors can rely on Jainam Broking Ltd., a trusted brokerage firm that provides research-backed recommendations and investment insights. By leveraging expert advice and market knowledge, investors can make informed decisions to build a strong and profitable portfolio.
So, are you planning on trading in the stock market? If yes, you are at the right place!
Open a Demat Account with Jainam Broking Ltd. Now!
Written by Jainam Admin
1 users read this article
Government stocks are shares of companies that are partially or fully owned by the government, usually referred to as Public Sector Undertakings (PSUs).
Stocks like ITI Limited, NHPC Ltd, and IRFC are among the best government stocks to buy based on fundamentals and growth potential.
A government penny stocks list includes affordable PSU stocks like ITI Limited, Andrew Yule & Co., and Hindustan Copper Ltd.
NHPC Ltd, IRFC, and RVNL are some government stocks listed under 100 that investors can consider.
Stocks like NBCC (India) Ltd and IRFC fall under best government stocks under 50 with strong future potential.
While government stocks offer stability, penny government stocks carry risks like market volatility and liquidity constraints.
The list of government stocks in India is available on stock exchange websites like NSE and BSE.
You can buy government penny stocks in India through online trading platforms offered by brokers like Jainam Broking Ltd.
The stocks mentioned here are for informational purposes only and should not be considered recommendations. Please do your research and analyze stocks thoroughly before making any investment decisions. Jainam Broking Limited does not guarantee assured returns or future performance of any securities or instruments.
Mar 21, 2025
12 min read
Mar 21, 2025
14 min read
Mar 21, 2025
12 min read
Get the link to download the App
Options Trading Conclave is here
Date: 21-22 March 2025
Venue: SIECC Convention Centre, Surat
#TRADERSMAHAKUMBH
OPTIONS TRADING CONCLAVE IS HERE
Date: 21-22 March 2025
Venue: SIECC Convention Centre, Surat
