Best PSU Stocks for September 2026 Based on 5-Year CAGR: Mazagon Dock, Garden Reach Shipbuilders and More

For September 2026, several PSU stocks showed impressive growth based on their 5-year Compound Annual Growth Rate (CAGR). This article highlights the top performers, including Mazagon Dock Shipbuilders Ltd and Garden Reach Shipbuilders & Engineers Ltd, among others.
Top PSU Stocks by 5-Year CAGR for September 2026
| S.No | Name | Market Cap (in ₹ crore) | PE Ratio | PB Ratio | Return on Equity | ROCE | 1 Year Return (%) | 5 Year CAGR (%) |
| 1 | Mazagon Dock Shipbuilders Ltd | 1,02,942.58 | 39.85 | 10.31 | 28.82 | 28.53 | -2.78 | 85.57 |
| 2 | Garden Reach Shipbuilders & Engineers Ltd | 29,800.7 | 39.84 | 14.33 | 28.11 | 46.3 | 11.77 | 70.07 |
| 3 | Cochin Shipyard Ltd | 38,949.11 | 54.34 | 6.98 | 15.64 | 17.85 | -4.33 | 54.15 |
| 4 | Bharat Heavy Electricals Ltd | 1,43,809.22 | 89.87 | 5.5 | 6.29 | 7.12 | 106.63 | 51.38 |
| 5 | Rail Vikas Nigam Ltd | 46,975.5 | 53.71 | 4.78 | 9.02 | 10.98 | -30.59 | 50.17 |
Mazagon Dock Shipbuilders Ltd
Mazagon Dock Shipbuilders Ltd leads the list with a 5-year CAGR of 85.57%. The company operates in the shipbuilding sector with a market capitalisation of ₹1,02,942.58 crore and a close price of ₹2,555. Despite a 1-year return of -2.78%, its return on equity stands at 28.82%, with a dividend yield of 0.71%.
Garden Reach Shipbuilders & Engineers Ltd
Garden Reach Shipbuilders & Engineers Ltd follows closely with a 5-year CAGR of 70.07%. With a market cap of ₹29,800.7 crore and a close price of ₹2,612.9, it has delivered a 1-year return of 11.77%. The company boasts a return on equity of 28.11% and a dividend yield of 0.75%.
Cochin Shipyard Ltd
Cochin Shipyard Ltd has achieved a 5-year CAGR of 54.15%. The company, also in the shipbuilding sector, has a market cap of ₹38,949.11 crore and a close price of ₹1,535. Its 1-year return is -4.33%, and it offers a dividend yield of 0.1%.
Bharat Heavy Electricals Ltd
Bharat Heavy Electricals Ltd, operating in the heavy electrical equipment sector, has a 5-year CAGR of 51.38%. With a market cap of ₹1,43,809.22 crore and a close price of ₹430.85, it has delivered a 1-year return of 106.63%. The company has a return on equity of 6.29% and a dividend yield of 0.34%.
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Rail Vikas Nigam Ltd's Performance
Rail Vikas Nigam Ltd, in the specialised finance sector, has a 5-year CAGR of 50.17%. The company has a market cap of ₹46,975.5 crore and a close price of ₹214.22. Despite a 1-year return of -30.59%, it maintains a dividend yield of 0.76%.
Conclusion
For September 2026, Mazagon Dock Shipbuilders Ltd leads with an 85.57% 5-year CAGR, followed by Garden Reach Shipbuilders & Engineers Ltd at 70.07%. Cochin Shipyard Ltd, Bharat Heavy Electricals Ltd, and Rail Vikas Nigam Ltd also show strong growth.
Disclaimer: This blog has been written exclusively for educational purposes. The securities or companies mentioned are only examples and not recommendations. This does not constitute a personal recommendation or 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.
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Published on: Aug 31, 2026, 4:17 PM IST

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