Best PSU Stocks in May 2025 Based on 5-Yr CAGR: HAL, RVNL, BEL, Power Grid & More

Public Sector Undertaking (PSU) stocks in India represent government-owned companies that operate across key sectors such as energy, banking, defence, infrastructure, and natural resources. As India advances towards becoming a $5 trillion economy, PSU companies are expected to play a more prominent role. In this article, find the best PSU stocks list in May 2025, based on the 5-yr CAGR and other parameters like net profit margin and debt to equity.  

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

Note: The best PSU stocks list provided here is as of April 30, 2025. The stocks picked are of positive 1-yr returns and sorted based on their 5-yr CAGR. 

Overview of the Best PSU Stocks in May 2025 

1. Rail Vikas Nigam Ltd 

Rail Vikas Nigam Ltd is involved in different 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 decline 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) 

HAL is engaged 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, a rise from ₹16,95,162 lakh during the same period in FY 2024. The net profit was ₹4,38,742 lakh, an increase 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) 

BDL is into 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, an increase from ₹1,78,849.59 lakh during the same period in FY 2024. The net profit was ₹27,687.33 lakh, a decline 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 provides 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. Power Grid Corporation of India Ltd 

Power Grid Corporation of India Limited (PGCIL) is a Maharatna Central Public Sector Undertaking (CPSU)Established in 1989, PGCIL was formed to develop and operate Extra-High Voltage (EHV) AC and High-Voltage Direct Current (HVDC) transmission lines across India. 

In 9M ended FY 2025, the company’s total income was ₹34,869 crore, a rise of 1% from ₹34,608 crore during the same period in FY 2024. The net profit was ₹11,379 crore, almost the same as ₹11,407 crore during the same period in FY 2024. 

Key metrics: 

• ROCE: 13.19% 

• ROE: 18.30% 

Best PSU Stocks in India – Based on Net Profit Margin 

Note: The best PSU stocks list provided here is as of April 30, 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 April 30, 2025. The stocks are sorted based on their low debt to equity. 

Also Read: Key Trends to Watch in May 2025: Indian Stock Market to Witness Several Events!

Conclusion 

Apart from the PSU stocks listed above, there are several other companies are owned by state and central governments. Before investing, it is imporant 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.