In its mid-2025 strategy report, Motilal Oswal Financial Services highlighted five public-sector undertakings (PSUs) as standout long-term investment ideas, arguing that the PSU segment has undergone structural improvement and no longer lags the broader market.
The selected stocks are:
- State Bank of India (SBI)
- Hindustan Aeronautics Limited (HAL)
- Bharat Electronics Limited (BEL)
- Power Grid Corporation of India Limited (PGCIL)
- Coal India Limited (CIL)
The report notes that the BSE PSU index achieved a 32 % CAGR from FY20–25, out-pacing the broader Nifty-50’s 19 % in the same period. It highlights improved profitability, cleaner balance sheets and supportive policy tailwinds as reasons for the turnaround in PSUs.
Motilal Oswal expects these companies to benefit from structural themes such as the government’s “Make in India” push, increased defence and infrastructure spending, and financial-sector reforms — placing them in a favourable position for long-term growth
