Best PSU Stocks in August 2025: Coal India, Garden Reach & More Based on 5-Yr CAGR

Public sector stocks, or PSU stocks, are shares of government-backed companies operating in vital sectors like energy, banking, defence, and infrastructure. Known for their stability, PSUs offer investors a reliable way to build wealth. With strong government support and long-term growth potential, they serve as ideal choices for portfolio diversification. To start investing in these promising companies, all you need is a demat account. In this article, we explore the best PSU stocks in India to consider for your investment strategy.

Best PSU Stocks in India in August 2025 - Based on 5Y CAGR

Note: The best PSU stocks list provided here is as of July 24, 2025.

Overview of the Best PSU Stocks in August 2025

Garden Reach Shipbuilders & Engineers Ltd(NSE: GRSE)

GRSE’S revenue has grown at a remarkable 26.67% CAGR, well above the industry average of 16.82%. This indicates a strong demand for its services. During the past 5 years, the company’s market share has also surged from 13.8% to 20.69%. This impressive expansion reflects the company’s ability to capture larger contracts and strengthen its leadership in India's defence and shipbuilding sector.

Key Metrics:

• Return on Equity (RoE): 23.14%
• Earnings Per Share (EPS - Quarterly): ₹21.32

Bank of Maharashtra(NSE: MAHABANK)

Bank of Maharasthra share price has emerged as an attractive choice for investors who prefer mid-cap companies for investment. The bank's revenue has grown at a robust 16.66% CAGR, surpassing the industry average of 14.43%. Besides, its market share has also inched upwards from 1.75% to 1.85%, reflecting gradual but consistent expansion.

Key Metrics:

• Return on Equity (RoE): 22.82%
• Earnings Per Share (EPS - Quarterly): ₹1.96

Punjab National Bank (NSE: PNB)

Over the last five years, PNB share price has shown a steady growth. The company’s market share increased from 8.56% to 9.21% and its revenue has grown at an annual rate of 17.1%. This is over the prevailing industry average of 14.43%. PNB’s net income has also surged at a remarkable 111.33% CAGR, far outpacing the industry average of 72.59%.

Key Metrics:

• Return on Equity (RoE): 15.10%
• Earnings Per Share (EPS - Quarterly): ₹4.34

Oil and Natural Gas Corporation Ltd (NSE: ONGC)

Over the past five years, ONGC share price has exhibited an upward trend. The company's revenue has grown at an annual rate of 10.72%, slightly outperforming the industry average of 10.7%.

Notably, ONGC has also increased its market share from 94.95% to 95.02%. This has strengthened its dominance in the oil and gas exploration sector. Its net income has surged at a robust 27.38% CAGR, significantly above the industry average of 22.4%, reflecting operational efficiency and profitability.

Key Metrics:

• Return on Equity (RoE): 14.73%
• Earnings Per Share (EPS - Quarterly): ₹5.82

Coal India Ltd (NSE: COALINDIA)

Over the past five years, Coal India share price has delivered stable returns. Remarkably, Coal India has sustained a 100% market share, underscoring its dominant position in India’s coal production industry. The company’s revenue has grown at an annual rate of 8.38%, thereby matching the industry average.

Key Metrics:

• Return on Equity (RoE): 51.52%
• Earnings Per Share (EPS - Quarterly): ₹15.58

Best PSU Stocks in India in August 2025 - Based on Debt-to-Equity Ratio

The Debt to Equity Ratio is crucial as it reveals a company's financial leverage and risk. A lower ratio, like those seen in Punjab National Bank and Bank of Maharashtra, indicates less reliance on borrowed money. This suggests greater financial stability and lower risk for investors. Here is the full breakdown:

Note: The best PSU stocks list provided here is as of July 24, 2025.

Read more: From Free Grains to Lower Rates: How India’s Fighting Inflation.

Conclusion

PSU stocks continue to offer a blend of stability, consistent returns, and long-term growth potential, especially in key sectors like energy, banking, and defence. With solid fundamentals and strong government backing, companies like Garden Reach, Bank of Maharashtra, and Coal India stand out in August 2025 based on 5-year CAGR performance.

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.