Best PSU Penny Stocks in India to Buy in 2025

PSU penny stocks are the low-priced shares of government-owned companies in India. PSU (Public Sector Undertaking) refers to a company owned and managed by the Indian government. The price of the best penny PSU stocks is very low. They usually trade below ₹20 or ₹50. The prices of penny PSU stocks go up and down quickly. This happens because of news, government decisions, or sudden buying and selling by investors.  

Penny PSU stocks by Market Capitalisation

Here are the multibagger PSU stocks under 100 to consider in 2025 for exemplary returns. Explore the latest PSU penny stocks list now!

Disclaimer: Please be aware that investing in PSU penny stocks in India or penny stocks in the government sector in India comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on the PSU penny stocks list to make an informed investment decision on the public sector undertaking company penny stocks list. 

Overview of PSU Penny Stocks

1. Mishtann Foods Ltd. 

Founded: 2015

Headquarters: Ahmedabad, Gujarat

Market Capitalisation: Rs 713.00 crore

Mishtann Foods Limited, formerly known as HICS, operates in the FMCG sector and is an Indian agro-based company. It manufactures and processes wheat, rice, pulses, and spices. The company manufactures its products in Gujarat, boasting a high production capacity. Mishtann Foods Ltd.’s revenue doubled in FY24 from ₹650.4 Cr in FY23 to ₹1288 Cr in FY24, which made it one of the best PSU penny stocks in India.

The company has established its branches in other countries, such as the UAE and the US, to sell its basmati rice. Mistann Foods is one of the best PSU penny stocks in India. It delivered 62.75% returns in the past year. As per Moneycontrol, Mishtann Foods Ltd.’s net sales were at Rs 73.10 crore in March 2025, down 10.58% from Rs 81.75 crore in March 2024.

2. Repco Home Finance Ltd. 

Founded: 2000

Headquarters: Chennai, Tamil Nadu

Market Capitalisation: Rs 2,771 Cr

Repco Home Finance Ltd. is registered with the National Housing Bank (NHB). Repco Home Finance provides home loans primarily to people in semi-urban and rural areas, enabling them to build their own homes and purchase existing ones. Repco Home Finance is owned by Repco Bank. Repco Home Finance Ltd is one of the best PSU penny stocks in India. It delivered 20.76% returns in the past year. It focuses on the strong demand among people to buy affordable houses, particularly in semi-urban and rural areas, where people are given loans, which reputable banks often overlook. It aims to expand quickly in the housing and real estate market.

3. Bank of Baroda

Founded: 1908

Headquarters: Vadodara, Gujarat

Market Capitalisation: ₹1,25,871 Cr

Bank of Baroda is one of the largest public sector banks. It has the largest network of branches and ATMs in India. Bank of Baroda provides banking products and services like personal banking, international banking, corporate and business banking, and rural banking. It also expands the digital services within India. 

Bank of Baroda is one of the best PSU penny stocks in India. It delivered 4.76% returns in the past year. Bank of Baroda is growing rapidly, and it is also expanding its networks by opening branches and focusing on reliable retail and gold-backed loans. It also improves the profitability and asset quality, strongly biased towards digital transformation and rural financial inclusion. 

4. Bank of India

Founded: 1906

Headquarters: Mumbai, Maharashtra

Market Capitalisation: ₹52,242 Cr

Bank of India is a commercial bank and is one of the oldest and largest public sector banks in the country. Bank of India provides banking services like retail banking, wholesale banking, and treasury operations. Bank of India is one of the best PSU penny stocks in India. It delivered 6.05% returns in the past year. Bank of India is the first nationalised bank to establish a fully computerised branch, and it provided ATM facilities in 1989. 

The Bank of India price target is 127.25 INR with a maximum estimate of 139.00 INR and a minimum estimate of 110.00 INR. According to The Economic Times, Union Bank of India reported a 12% increase in net profit, reaching Rs 4,116 crore in the first quarter of this fiscal year. 

5. Bank of Maharashtra 

Founded: 1935

Headquarters: Pune, Maharashtra 

Market Capitalisation: ₹43,557 Cr

Bank of Maharashtra is a public sector bank in India. It was founded by V.G. Kale and D.K. Sathe. Bank of Maharashtra offers the services of retail banking, corporate banking, agriculture banking, and digital banking. 

Bank of Maharashtra is one of the best PSU penny stocks in India. It delivered 12.64% returns in the past year. It has a strong presence in Maharashtra and across the country. Maharashtra Executor & Trustee Company (METCO) is a subsidiary of Bank of Maharashtra. Bank of Maharashtra has a strong first quarter for FY 2025-26, with a 23.14%surge in net profit to ₹ 1,293 Cr. 

6. Gujarat Mineral Development Corporation Ltd

Founded: 1963

Headquarters:  Vastrapur, Ahmedabad

Market Capitalisation: ₹13,865Cr

Gujarat Mineral Development Corporation Ltd., owned by the government of Gujarat it is an indian mining and mineral processing company. It focused on developing the mineral resources of Gujarat. The company generates power through wind, thermal, and solar sources. It is the largest lignite producer in India, and it expands the growth in other cities.  

Gujarat Mineral Development Corporation Ltd. is one of the best PSU penny stocks in India. It delivered 14.31% returns in the past year. GMDC focused on enhancing the production capabilities and operational efficiency. The company focuses on diversification and value addition to mitigate the risk. As per The Economic Times, GMDC shares increased by 14% in the 52 period. 

7. Power Grid Corporation of India Ltd.

Founded: 1989

Headquarters: Gurugram

Market Capitalisation: ₹2,76,181 Cr

Power Grid Corporation of India Ltd. is a Maharashtra public sector enterprise. It is owned and managed by the Government of India. Power Grid mainly transmits the power across the country. It is listed in the indian stock market, with a significant portion of its shares held by the indian government. POWERGRID is the backbone of the Indian transmission system. It provides the power across the country. Power Grid Corporation of India Ltd. is one of the best PSU penny stocks in India. It delivered 10.43% returns in the past year. It increased the investment in the transmission infrastructure to provide electricity to the neighboring countries. It also generates profits and revenue while it focuses on efficiency on operational. 

POWERGRID also focuses on CSR activities like developing the infrastructure in rural areas, providing education to poor people.  POWERGRID provides the CSR initiative to the Arunachal government school. 

8. Canara Bank Ltd.

Founded: 1906

Headquarters: Bengaluru, Karnataka

Market Capitalisation: ₹1,01,591 Cr

Canara Bank is an Indian public sector bank. It is owned and managed by the Indian government, and it is one of the oldest banks in the public sector in India and This bank has international branches in places like Dubai, New York, and London. It provides personal and corporate banking, digital banking solutions, and investment opportunities. Canara Bank is one of the best PSU penny stocks in India. 

Canara Bank has delivered 4.57% returns in the past year. The global business has increased by 11.32% to Rs. 25,30,215 Cr, and global deposits increased by 11.01% to Rs. 14,56,883 Cr. Canara Bank is targeting a 10-11% credit growth for the next financial year, FY26, and it also focuses on deposit growth to maintain a comfortable CD ratio. As per Money Control, Canara Bank shares have decreased by 2.0%. 

What are PSU Penny Stocks?

The price of PSU penny stocks in India is so low that they are trading under ₹20 or ₹50 per share. These companies are either owned or managed by the government, either at the state or central level. They offer some trust and stability that is better than that of private stocks. The price of shares is very low in the Indian stock market, and small investors can buy many. shares with less money. If the price of shares is small after some time, the price of stocks increases, giving big profits in the shares, which means a ₹10 stock going to ₹20, meaning they give a 100% return. 

The best PSU penny stocks in India to invest in 2025 are Mishtann Foods Ltd., Bank of India, Bank of Maharashtra, Canara Bank, and Recpo Home Finance Ltd. Explore such companies to make an informed investment decision and secure your ideal returns. 

What is PSU (Public Sector Undertaking): A Brief Outlook 

A Public Sector Undertaking (PSU) is a company in which the government (either state or central) owns 51% or more of the share capital. These PSU companies are either fully government-controlled or are joint ventures between multiple PSUs. PSUs play a vital role in India’s development by operating in key sectors like power & energy, banking & finance, oil & gas, steel & heavy industry, defense, railways, and infrastructure. 

One such example is Bharat Heavy Electricals Limited (BHEL), where the government holds a 63.17% stake, making it a PSU in the heavy electrical equipment sector. These organisations function under various government ministries and departments.

The first PSU in India was established in 1940, and after independence, India followed a mixed economy model under Prime Minister Jawaharlal Nehru to promote industrial growth through PSUs. Penny PSU stocks, which are low-priced shares of government-owned companies, offer retail investors the opportunity to invest in essential sectors with potential for long-term growth, although they carry higher risk and require careful analysis.

PSU plays a crucial role in the Indian economic framework. They promote the development in the rural and urban areas, like creating job opportunities, building infrastructure, and maintaining defense security. As per the ACE equity, the 56 listed PSUs generated a record profit of 5 lakh crore in the financial year 2024.

Best PSU Penny Stocks List With P/E Ratio

Explore the best PSU penny stocks list with their P/E ratio.   

Benefits of PSU Penny Stocks in India

Here are the significant benefits of the best PSU penny stocks in India.

1. Low Price and High Potential 

The low price of PSU penny stocks in India makes them high-potential opportunities to generate tremendous returns. These penny stocks typically trade at a low price under ₹10, ₹20, or ₹50. These are among the best PSU penny stocks in India, offering a better opportunity to generate high returns. 

2. Backed by the Government 

PSUs (Public Sector Undertakings) are owned and backed by the Indian government (either state or central). These PSU sectors provide more trust and long-term stability to investors in the Indian stock market. 

3. Multibagger PSU Stocks  

Most investors in India are looking for shares that can deliver tremendous returns like multibagger PSU stocks under 100, and they are well aware of the potential of the best penny PSU stocks in India because of their low price and dominant industry exposure. These penny stocks in the PSU sector in India can give a high return on investment or more to deliver multibagger PSU stock returns in the coming decades.

4. Dividend and Bonus Chances 

PSU penny stocks in India not only appreciate capital but also provide their shareholder with dividend yields. PSU companies pay dividends regularly, and sometimes they issue bonus shares and give the extra income to the investors. While exploring the best PSU penny stocks list with price, check for previous dividend payouts. 

Factors to Consider for PSU Penny Stocks

One should consider multiple factors before investing in the best PSU penny stocks in India. These factors might help individuals make an informed investment decision to avoid significant losses in the Indian stock market. Consider the factors when exploring the best PSU penny stocks list. 

1. Financial Health

Review the financial reports of PSU companies. We have already witnessed an increase in the demand for public sector undertaking companies. It would help the best PSU penny stocks in India maintain healthy financial records. Check the company’s balance sheet for profitability, cash flows, and debt levels. Avoid those companies that have high losses or heavy debt. 

2. Government ownership and support 

The best PSU penny stocks in India backed by the government are safe investments with low risk tolerance. Investing in such stocks might be a stepping stone for investors to generate multibagger PSU stock returns. Look for the best PSU penny stocks list with low prices and government ownership and support for portfolio diversification. 

3. Stability 

PSU penny stocks are considered more stable because they are owned and supported by the government. This backing provides investors with a sense of safety and security, which many people consider when choosing investments. However, it is important to remember that all stocks can fluctuate in value. Multibagger PSU stocks under 100 continue to be influenced by the company’s performance and investor perceptions. 

4. Company fundamentals

If it is Penny PSU Stocks, the company looks at the revenue, profit trends, debt level, and overall financial health of the organisation. PSU penny stocks avoid companies that incur losses and have a high level of debt. 

Best PSU Penny Stocks List With 5-Year Returns

Explore the best PSU penny stocks list with 5-year returns. 

Best PSU Penny Stocks List With Dividend Yields

PSU Penny Stocks List With 5-Year CAGR

Look at the best PSU penny stocks list with their 5-year CAGR (Compound Annual Growth Rate).

Disclaimer:  Please be aware that investing in PSU penny stocks in India or penny stocks in the government sector in India comes with inherent risks due to volatile market conditions and low liquidity. It is recommended to conduct your own research on the PSU penny stocks list to make an informed investment decision on the public sector undertaking company penny stocks list. 

How to Pick the Best PSU Penny Stocks in India? 

Here is how to pick from the best PSU penny stocks list. Explore the step-by-step guide to make an informed investment decision.

1. Financial Analysis

Identify the best penny stock in India that belongs to the PSU sector, which has consistently increased profit margin, YoY revenue growth, and positive cash flow. Financially healthy PSU penny stocks in India might reveal their potential to become multibaggers in 2025.  

2. Strong Business

PSU companies have an essential or strategic business in the country; the businesses are defense, infrastructure, or banking. The government has supported the companies because they are investing in those companies. That’s why the best PSU penny stocks in India have strong business support.

3.  Earning Money 

When you choose good penny stocks, you should check that the company is making a profit. This means the company is earning more money than it is spending, which is good for the company. Also see the company is growing every year. This includes the sales and profits of the organisation. 

4. Backed By Government

The best PSU penny stocks in India are considered multibagger PSU stocks because of the immense government support for the Public Sector Undertaking. Choose the best penny stocks to buy in the PSU sector in 2025, which have government support in terms of the union budget, policies, and litigations.

5. Dividend Payouts

Pick the dividend-paying PSU penny stocks in India, like Bank of Maharashtra. A dividend is not part of capital appreciation. It can help you earn extra income to increase wealth or to meet unsuspected expenses. 

Also Read : Best Defence Penny Stocks For Higher Growth in 2025

Risk in PSU Penny Stocks List With Mitigation Strategies

PSU penny stocks often deliver multibagger returns, but also come with some risks. Here are the significant risks involved in the best penny stocks in India in the PSU sector.

1. Low Liquidity 

When holding the best penny PSU stocks in India, investors can suffer low volatility and minimal price movements in the short term. It could affect the best PSU penny stocks in India in terms of price decline. Under such circumstances, investors may struggle to buy or sell low-priced stocks in the market.   

Mitigation Strategies: Check the volatility in shares while exploring the best PSU penny stocks list and invest in the popular stocks that have an adequate level of volatility.

2. Market Manipulation

The best PSU penny stock in India comes with low prices and is accessible for unsuspecting investors to manipulate prices. These investors can buy and sell a large number of penny PSU stocks to divert investors.  

Mitigation Strategies: Be cautious of fraudulent practices in the best PSU penny stocks list to avoid significant losses. 

3. Volatility

When investors hold penny PSU stocks, the price of PSU penny stocks in India can fluctuate dramatically based on small trades or news events, which can lead to gains or losses in the penny stock market. 

Mitigation Strategies: Check the volatility while exploring the best PSU penny stocks list and invest in the penny PSU stocks. It leads to rapid gains or losses in the price of the share. 

Who Should Invest in PSU Penny Stocks in India?

Here is the list of investors who should pick from the best PSU penny stocks list. 

1. High-Risk-Tolerant Investors

 Investors with high-risk tolerance can pick from the best PSU penny stocks list. It prefers that investors invest a small capital amount in these stocks to take part in the high-risk risk high-reward play.

2.  Value investors

If you invest in the Indian stock market, you don’t have much capital to generate in sustainable return. The best PSU penny stocks in India can help investors invest an amount of capital to generate multibagger returns. Explore the best PSU penny stocks in India now to buy a large number of shares with less capital to build wealth in the stock market. 

3. Long-term investors 

For those with high patience and the ability to wait for a longer period in the stock market, the best PSU penny stocks in India are the most suitable options. These stocks can deliver exemplary returns in longer durations in the Indian stock market. For example, Bank of India Ltd. has delivered returns of 133.88% over the past 5 years.

4.  Small Portfolio

The penny PSU stocks can help the inventors allocate a very small portion of their portfolio, for example, less than 10%, into the best PSU penny stocks in India. These stocks are cheap, so the chance of losing a lot of money is lower. If the company does well in the future. They give a good return in the Indian stock market. 

So what are you waiting for? Add some of the best PSU penny stocks in India to your portfolio and get exemplary returns!

Other PSU Stocks under 100

How to Invest in PSU Penny Stocks?

Here is the step-by-step guide for investing in the top-performing penny PSU stocks in 2025. 

• Step 1: Research the top multibagger PSU stocks or the best PSU penny stocks list with their financial and fundamental parameters. 
• Step 2: Select the top government-backed penny PSU stocks to diversify your investment portfolio. 
• Step 3: Open a demat account on Univest, navigate to the search section, and look for the selected stocks. 
• Step 4: Place a buy order for the best-performing PSU penny stocks and execute it to invest successfully. 
• Step 5: Track your returns in the portfolio section and wait for the right time to book returns.

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Why Invest in PSU Penny Stocks in India? 

Investing in multibagger PSU stocks can be appealing for investors seeking high-return opportunities at a low entry cost. The penny stock price is under ₹10, ₹20, or ₹50 and belongs to a government-owned company, which is managed by the government. To achieve this aim, the government is allocating a substantial budget to the PSU sector and implementing several significant growth policies. 

With the help of public sector undertakings (PSU), the best PSU penny stocks in India may have impeccable growth potential to deliver tremendous returns in the coming decades. 

Investing in penny PSU stocks could be beneficial in the long term because of their dominant industry exposure. Companies involved in the PSU sector in India are witnessing rapid growth in public sector undertakings at domestic as well as international levels. Furthermore, the best PSU penny stocks in India are also targeted by FIIs, as they could evolve into high-growth penny PSU stocks that deliver substantial returns to early investors.

Let’s Wrap 

Investing in top-performing PSU penny stocks can help you spread your risk and earn steady returns over time. However, it’s essential to invest wisely by considering factors such as the company’s financial stability, stock price trends, business operations, and relevant government regulations. Some good PSU penny stocks to consider are Bank of Baroda, Bank of Maharashtra, Canara Bank, and Repco Home Finance Ltd.

Have a look at the best PSU penny stocks list to get sustainable returns on your capital investment!

Also Read : Chemical Penny Stocks in India for 2025 | Invest to Gain More

FAQs on PSU Penny Stocks

What are the top PSU penny stocks?

Ans. Explore the latest PSU penny stocks list now.

Which stock is best in the PSU sector?

Ans. Explore the best PSU penny stocks in India with 5-year returns.

Which PSU penny stocks could boom in 2025?

Ans. Top PSU penny stocks in India that could boom in 2025 include NHPC Ltd., State Bank of India, Power Grid Corporation India Ltd., and Coal India Limited.  

Should I invest in PSU stocks?

Ans. Investing in PSU stocks could help individuals build wealth and generate tremendous returns with the help of dominant industry exposure. These stocks belong to the government companies. However, it is essential to conduct your research on PSU stocks in India to invest with careful consideration. 

Which PSU stocks are best under 100 Rs?

Ans. Look at the multibagger PSU penny stocks under 100 with their 5-year CAGR (Compound Annual Growth Rate).

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Disclaimer: This is for general information and education purposes only. The Securities quoted (if any) are for illustration only and are not recommendatory. Past performance does not guarantee any future returns. Investments in the securities market are subject to market risks. Read all the related documents carefully before investing.