Best PSU Stocks Under ₹100 for Jan 2026 - 5yr CAGR Basis - Indian Overseas Bank, NHPC & More

Public Sector Undertakings (PSUs) include companies in which the government holds a majority stake. These stocks span sectors like banking, energy, etc. government policies, global commodity trends, and overall market sentiment influence their prices. There are PSU stocks are currently trading below ₹100. In this article, find the best PSU stocks under ₹100, based on the 5yr CAGR. 

Best PSU Stocks Under ₹100 for Jan 2026 - 5y CAGR Basis

Note: The best PSU stocks under ₹100 are sorted by their 5yr CAGR and are as of January 5, 2025. 

Overview of Best PSU Stocks Under ₹100 for Jan 2026

1. Bank of Maharashtra Ltd 

Bank of Maharashtra offers a range of financial services. Its business is organised into segments such as Treasury, Corporate/Wholesale Banking, Retail Banking, and other banking operations. In Q2FY25, the bank reported a 23.09% year-on-year increase in net profit, which rose to ₹1,633 crore compared to ₹1,327 crore in Q2FY24. During the same period, total deposits grew by 12.13%, reaching ₹3,09,791 crore.

Key Metrics: 

• ROE: 22.82%
• ROCE: 8.89%

2. NHPC Ltd 

NHPC, a Navratna public sector enterprise, is the Government of India’s flagship hydroelectric power company. The company mainly focuses on generating and selling bulk electricity to various power utilities. Additionally, the company is incolved in project management, construction contracts, consultancy services, and power trading. 

For the quarter ended September 30, 2025, the company reported revenue from operations of ₹2,732.11 crore, compared to ₹2,549.25 crore in the same period last year. The profit for the quarter was ₹925.52 crore. 

Key Metrics: 

• ROE: 6.75%
• ROCE: 6.44%

3. Indian Overseas Bank 

Indian Overseas Bank was founded in 1937 by Chidambaram Chettyar and was among the 14 major banks nationalised in 1969. In the first half of FY26 (H1 FY26), the bank reported a total income of ₹18,081 crore, marking an increase from ₹16,052 crore in H1 FY25. Profit after tax also saw a rise, reaching ₹2,337 crore in H1 FY26, compared with ₹1,410 crore in the corresponding period last year.

Key Metrics: 

• ROE: 11.36%
• ROCE: 5.52%

4. Central Bank of India Ltd

Central Bank of India is a commercial lender with its operations spread across Treasury Operations, Corporate and Wholesale Banking, Retail Banking, and other allied banking activities. Its Treasury Operations segment includes trading in government and other securities, money market dealings, and foreign exchange transactions.

For the quarter ended September 30, 2025, the bank posted a total income of ₹10,250 crore, registering a 4.07% growth compared with the corresponding quarter of the previous year. Net profit for the same period rose sharply by 32.86% year-on-year to ₹1,213 crore.

Key Metrics: 

• ROE: 11.33%
• ROCE: 7.47%

5. MMTC Ltd 

MMTC, a public sector enterprise established in 1963, was created to promote foreign trade in India and oversee the import and export of key minerals and metals. Functioning under the administrative control of the Ministry of Commerce & Industry, Government of India, the company engages in trading minerals, metals, precious metals, agricultural commodities, fertilisers, chemicals, coal, and hydrocarbons.

For the quarter ended September 30, 2025, MMTC reported a total income of ₹38.47 crore, down from ₹44.58 crore in the same quarter last year. However, the company’s profit surged to ₹133.59 crore, up from ₹38.16 crore in the corresponding period of the previous year.

Key Metrics: 

• ROE: 5.21%
• ROCE: 6.93%

Also Read: Top 5 Highest & Lowest Expense Ratio Small-Cap Mutual Funds – Jan 2026!

Conclusion

PSU stocks under ₹100 can offer an opportunity to gain exposure to government-backed companies. However, investors should assess the company’s financial health, sector outlook, and long-term growth potential before investing. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a private 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.