Best PSU Stocks in India in June 2025: Rail Vikas Nigam, HAL & More Based on 5-Yr CAGR

Public Sector Undertakings (PSUs) have long been pillars of India’s economic framework, offering a compelling blend of stability, attractive dividends, and consistent long-term growth. Their performance over the past decade highlights their resilience and strategic importance.

The net worth of Central Public Sector Enterprises (CPSEs) has seen a robust 82% increase—from ₹9.5 trillion in FY14 to ₹17.33 trillion in FY23. Meanwhile, their contribution to the national exchequer through excise duties, taxes, and dividends has more than doubled, rising from ₹2.20 lakh crore to ₹4.58 lakh crore over the same period.

With their continued strong fundamentals and crucial role in nation-building, let’s explore the best PSU stocks in June 2025 based on 5 year CAGR.

Best Government Stocks in India June 2025 - Based on 5yr CAGR

Note: The best PSU stocks list provided here is as of May 29, 2025. The stocks are sorted based on their 5-yr CAGR.

Overview of the Best PSU Stocks in June 2025

1. Rail Vikas Nigam Ltd

Rail Vikas Nigam Ltd (RVNL), a key player in India’s railway infrastructure development, reported a consolidated net profit of ₹459.15 crore in Q4 FY25, reflecting a 4% year-on-year decline from ₹478.56 crore in Q4 FY24.

RVNL undertakes project execution for railway line construction, electrification, and metro development. The company operates under the Ministry of Railways and plays a crucial role in expanding and modernising India’s rail network.

Key metrics:

• Return on Equity (ROE): 19.69%

• Return on Capital Employed (ROCE): 14.57%

   

2. Hindustan Aeronautics Ltd (HAL)

Hindustan Aeronautics Limited (HAL) reported a 7.7% decline in consolidated net profit, which stood at ₹3,977 crore for Q4 of FY25. However, compared to the previous quarter, net profit surged significantly, increasing by 176% from ₹1,440 crore.

Hindustan Aeronautics Limited (HAL) is a state-owned aerospace and defence company engaged in the design, manufacture, and maintenance of aircraft, helicopters, and related systems.

Key metrics:

• ROE: 28.91%

• ROCE: 26.04%

   

3. Bharat Electronics Ltd

Bharat Electronics Limited (BEL) reported a 15% year-on-year increase in net profit for Q4 FY25, reaching ₹2,127 crore compared to ₹1,796.67 crore in the same quarter last year.

BEL is a leading defense electronics company in India, specialising in the design and manufacture of advanced electronic products for the armed forces, including radar systems, communication equipment, and electronic warfare solutions.

Key metrics:

• ROCE: 40.63%

• ROE: 26.37%

   

4. Bharat Dynamics Ltd

Bharat Dynamics' shares fell 1.42% to ₹1,198.05 after the company posted a 5.54% drop in net profit to ₹272.77 crore for Q4 FY25, even as its total revenue from operations more than doubled, rising 108.05% to ₹1,776.98 crore.

Bharat Dynamics specialises in producing missiles and related defence systems, primarily catering to the Indian Armed Forces and the Government of India.

Key metrics:

• ROCE: 10.25%

• ROE: 17.89%

   

5. Bharat Heavy Electricals Ltd

Bharat Heavy Electricals Ltd (BHEL), reported a 4% year-on-year increase in its standalone net profit for Q4 FY25. The company posted a net profit of ₹504.05 crore, up from ₹484.36 crore in the same quarter last year.

BHEL is a key player in India’s power generation and industrial sectors, specialising in the design, engineering, and manufacture of heavy electrical equipment. The company is also involved in renewable energy and defence projects, contributing to India’s strategic growth.

Key metrics:

• ROCE: 4.44%
• ROE: 1.16%

Best PSU Stocks in India - Based on Net Profit Margin

Here’s a look at the top-performing PSU stocks in June 2025, ranked by their impressive net profit margins, showcasing their strong profitability and financial health.

Note: The best PSU stocks list provided here is as of May 29, 2025. The stocks are sorted based on their net profit margin.

Best PSU Stocks in June 2025 - Based on Low Debt to Equity

Below are the leading PSU stocks in June 2025, selected for their low debt-to-equity ratios, reflecting their strong financial stability and prudent management.

Note: The best PSU stocks list provided here is as of May 29, 2025. The stocks are sorted based on their low debt-to-equity ratio.

Read More: Best Semiconductor Stocks in India in June 2025: Tata Elxsi, Dixon Tech & More Based on 5-Year CAGR.

Conclusion

This article highlights key PSU stocks based on important financial metrics like 5-year CAGR, net profit margin, and debt-to-equity ratios as of June 2025. These companies play significant roles in their respective sectors and contribute to India’s industrial and economic landscape. Investors are encouraged to review such data carefully, along with their individual investment goal,s before making decisions.

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.