Best PSU Stocks in India in December 2025: HAL, CDSL, IRCTC, and More Based on 5Y CAGR

PSU leaders like HAL, SBI, and NTPC are reporting strong revenue growth, larger order books, and attractive dividend payouts. These government-backed companies continue to support India’s financial and industrial progress, making them dependable options for long-term investors.

Best Government Stocks in India in December 2025 Based on 5Y CAGR

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

Overview of the Best PSU Stocks in December 2025

1. Hindustan Aeronautics Limited (HAL)

Hindustan Aeronautics Limited (HAL) builds aircraft and helicopters and also handles their repair and maintenance. 

As of March 2025, HAL’s order book had grown to ₹1,89,300 crore, nearly double the ₹94,127 crore recorded in April 2024. The orders include major projects like 240 AL-31FP engines, 156 LCH Prachand helicopters, and 12 Sukhoi-30MKIs, along with multiple repair, overhaul, and export contracts.

Key Metrics

• ROCE: 33.9%
• ROE: 26.1%

2. Central Depository Services Limited

Central Depository Services Limited (CDSL) is a key part of India’s capital market infrastructure. It provides services to stock exchanges, clearing corporations, depository participants (DPs), companies, and investors. CDSL helps people hold their securities in digital (demat) form and makes it easy to carry out secure and efficient securities transactions.

Key Metrics

• ROCE: 42.0%
• ROE: 32.7%

3. Coal India Ltd

Coal India Ltd is primarily involved in mining and producing coal. It also runs coal washeries. Most of its coal is supplied to the power and steel industries, while other customers include cement, fertilizer companies, and brick manufacturers.

Key Metrics

• ROCE: 48.0%
• ROE: 38.9%

Best Government Stocks in India in December 2025 Based on Market Cap

Note: The best PSU stocks in December 2025 list provided here is as of November 29, 2025. The stocks are sorted based on their market cap.

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Best Government Stocks in India in December 2025 Based on ROE

Note: The best PSU stocks in December 2025 list provided here is as of November 29, 2025. The stocks are sorted based on their ROE.

Conclusion

These companies hold strong positions in their industries and play an important role in India’s economic and industrial growth. Investors should evaluate this data thoughtfully and consider their own financial goals before making any investment choices.

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.