Best PSU Stocks in April 2025 Based on 5-Yr CAGR: RVNL, HAL, BDL & More

Public Sector Undertakings (PSUs) have been a vital pillar of India’s economy, driving growth and supporting key sectors such as energy, banking, infrastructure, and defence. These government-owned corporations play a significant role in revenue generation and national development.  In this article, find the best PSU stocks list in April 2025, based on the 5-yr CAGR and other parameters like net profit margin and debt to equity. 

Best Government Stocks in India April 2025 – Based on 5yr CAGR

Note: The best PSU stocks list provided here is as of March 28, 2025. The stocks selected are of positive 1-yr returns and sorted based on their 5-yr CAGR.

Overview of the Best PSU Stocks in April 2025

1. Rail Vikas Nigam Ltd

Rail Vikas Nigam Ltd takes up various kinds of rail infrastructure projects assigned by the Ministry of Railways (MoR). In 9M ended FY 2025, the company’s total income was ₹14,308.89 crore, a drop from ₹16,080.49 crore during the same period in FY 2024. The net profit was ₹822.41 crore, a drop from ₹1,096.08 crore during the same period in FY 2024. 

Key metrics:

• Return on Equity (ROE): 19.69%
• Return on Capital Employed (ROCE): 17.44%

2. Hindustan Aeronautics Ltd (HAL)

Hindustan Aeronautics Ltd is involved in the manufacturing of aircraft and helicopters and repairs and maintains them. The company is a Navaratna Status Public Sector Undertaking (PSU) under the Ministry of Defence. In 9M ended FY 2025, the company’s total income was ₹19,19,126 lakh, an increase from ₹16,95,162 lakh during the same period in FY 2024. The net profit was ₹4,38,742 lakh, a rise from ₹3,31,227 lakh during the same period in FY 2024. 

Key metrics:

• ROE: 28.91%
• ROCE: 24.58%

3. Bharat Dynamics Ltd (BDL)

Bharat Dynamics Ltd is involved in the manufacturing base for guided missile systems and allied equipment for the Indian Armed Forces. In 9M ended FY 2025, the company’s total income was ₹1,61,890.83 lakh, a rise from ₹1,78,849.59 lakh during the same period in FY 2024. The net profit was ₹27,687.33 lakh, a drop from ₹32,334.42  lakh during the same period in FY 2024.

Key metrics:

• ROCE: 11.34%
• ROE: 17.89%

4. Bharat Electronics Ltd (BEL)

Bharat Electronics Ltd is a Navratna PSU under the Ministry of Defence, Government of India. BEL offers advanced electronic products for the Indian Army. The company has achieved a total income of ₹15,16,688 lakh, marking a growth in the 9M ended FY 2024-25, compared to ₹12,14,887 lakh during the same period last year. The PAT for the 9M of FY 2024-25 stood at ₹3,19,566 lakh, reflecting a growth from ₹2,18,857 lakh recorded in the corresponding period of the previous year.

Key metrics:

• ROCE: 30.17%
• ROE: 26.37%

5. Rashtriya Chemicals and Fertilizers Ltd

Rashtriya Chemicals & Fertilizers is a public sector undertaking (PSU) with the Government of India holding a 75% stake. The company specialises in the manufacturing and marketing of fertilisers and industrial chemicals. In 9M ended FY 2025, the company’s total income was ₹13,318.88 crore, a rise from ₹13,238.61 crore during the same period in FY 2024. The net profit was ₹169.99 crore, a drop from ₹130.04 crore during the same period in FY 2024.

Key metrics:

• ROCE: 8.01%
• ROE: 4.90%

Best PSU Stocks in India – Based on Net Profit Margin

Note: The best PSU stocks list provided here is as of March 28, 2025. The stocks are sorted based on their net profit margin.

Best PSU Stocks in India – Based on Low Debt to Equity

Note: The best PSU stocks list provided here is as of March 28, 2025. The stocks are sorted based on their low debt to equity.

Conclusion

In addition to the PSU stocks listed above, several other companies are owned by state and central governments. Before investing, it is essential to analyse the company’s business, financials, and growth prospects. Always assess your investment goals and risk tolerance before making a decision.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.