List of Best Stocks with Majority Stake Held by Government of India: In this article, we’ll look into the public sector companies in India or those public stocks where majority stakes are held by the central and state government. We are categorizing these stocks not particularly on financials, but based on their latest market cap. Having the majority stake held by the government, these companies are comparatively less volatile and stable in terms of market actions.
Please note that we are not considering PSU Banks. The PSU Banks like SBI, Bank of India, PNB, IOB, etc also have a majority of stake by the government. However, the government is also planning to privatize these PSU banks soon and reduce their stakes. These companies are not included in this list.
Now, let’s start with our list of top stocks with majority stake held by the government. Keep reading to find out.
Top 12 Stocks with Majority Stake Held by Government
Here are the top stocks with majority stake held by the government ranked based on their market current market cap along with their industry and business details:
Oil and Natural Gas Corporate of India is an oil exploration company in India with a Marketcap of Rs 1,48,069.9 Cr. It is a government-owned crude oil and natural gas corporation. ONGC is currently trading at a PE of 9.34. Maharatna ONGC is the largest crude oil and natural gas company in India, contributing around 71 percent to Indian domestic production. Further, ONGC holds subsidiary companies like Hindustan Petroleum, Mangalore Refinery and Petrochemical, Imperial Energy Corporation, and more.
Powergrid Corporation of India is a power generation and distribution company with a Marketcap of Rs 1,21,529.8 Cr. and is currently trading at a PE of 10.30. It is an Indian government electricity board and a Maharastra public sector undertaking which is owned by the Ministry of Power, GOI.
NTPC or National Thermal Power Corporation Limited is a power generation and distribution company in India with a Marketcap of Rs 1,12,869.2 Cr and is currently trading at a PE of 9.19. It is government-owned and is engaged in the business of generation of electricity and allied activities
4. Indian Oil
Indian oil corporation (IOCL) is a refinery company in India with a Marketcap of Rs 1,01,625.8 Cr and is currently trading at a PE of 4.66. It is owned by the Ministry of Petroleum and Natural gas. India Oil is a Fortune 500 company and has retained the top spot as India’s highest-ranked PSU in fortune 500 listings for 2020. They own +29,000 fuel stations (petrol pumps) including over 8,515 Kisan Seva Kendra (KSK) outlets in the rural market.
5. Bharat Petroleum
Bharat petroleum corporation limited is another refinery-based company in India with a Marketcap of Rs 1,01,553.5 Cr and is currently trading at a PE of 6.02. It is also owned by the Ministry of Petroleum and Natural gas and has two of its biggest refineries in Kochi and Mumbai.
6. Coal India
Coal India is a mining and mineral refinery-based company with a Marketcap of Rs 90,345.6 Cr and is currently trading at a PE of 7.19. It is also the world’s largest coal-producing company in the world. It is owned by the union government of India and is managed by the Ministry of coal. The company distributes up to 82% of the total coal production in India.
Gail is a Natural gas and transmission company in India with a Marketcap of Rs 66,428 Cr and is currently trading at a PE of 10.70. It is owned by the Ministry of Petroleum and Natural Gas, GOI. It is responsible for natural gas processing and distribution in India.
Steel Authority of India or SAIL is a Steel and Iron Products based company in India with a Marketcap of Rs 53,944.6 Cr and is currently trading at a PE of 12.40. It is owned by the Ministry of Steel, GOI.
National Mineral Development Corporation or NMDC is an Iron ore company and is involved in Mining & mineral industry. NMDC has a Marketcap of Rs 53,937 Cr and is currently trading at a PE of 8.03. It is also under the administrative control of the Ministry of Steel, GOI.
10. Bharat Electronics
Bharat Electronics Limited (BEL) is a Navratna stock which is an Engineering and Industrial Equipments based company with a Marketcap of Rs 43,371.3 Cr. It is currently trading at a PE of 21.37. BEL is under the administrative control of the Ministry of Defense of India and is involved in manufacturing advanced electronic products for ground and aerospace applications.
Container Corporation of India (CONCOR) is a container and logistics-based company in India with a Marketcap of Rs 42,565.3 Cr and is currently trading at a PE of 81.59. It is a public sector undertaking managed by the Indian ministry of railways. The company was set up in 1966 with the aim of containerizing cargo transport. Concor’s core business includes the cargo carriers, terminal operator, warehouse operator, and MMLP operation.
12. Hindustan Petroleum
Hindustan Petroleum Corporation Limited (HPCL) is a refinery-based company in India with a Marketcap of Rs 41,602 Cr and is currently trading at a PE of 3.59. It was formed in 1974. HPCL is the second-largest petroleum pipeline network in India with a network length of 3,775 km. It enjoys an 18% market share in Indian and has a strong presence in the refining and marketing of petroleum products in the country.
3 Themes to Invest for Future - Stocks to Watch out for!
In this article, we looked into top stocks with majority stake held by the government in India. Apart from the above-mentioned stocks, there are many other stocks where the government holds major stakes are BHEL, Oil India, HAL, IRCTC, NALCO, NHPC, Hindustan Zinc, NBCC, SJVN, and more.
That’s all for this post. Do comment below which is your favorite stock in this list of best stocks with majority stake held by the government in India in the comment section below. Have a great day and Happy investing.
Hi, I am Kritesh (Tweet me here), an NSE Certified Equity Fundamental Analyst and an electrical engineer (NIT Warangal) by qualification. I have a passion for stocks and have spent my last 4+ years learning, investing and educating people about stock market investing. And so, I am delighted to share my learnings with you. #HappyInvesting