Public sector stocks trading at P/E ratios below 10 represent potentially undervalued opportunities in government-backed enterprises. These companies, operating in strategic sectors, offer stability through state ownership while trading at attractive valuations. Such low multiples could signal either market underappreciation or underlying challenges, making them interesting value plays for discerning investors.
The Indian Budget 2025 fell short of market expectations, causing several PSU stocks to trade at a discount. Coal India faced a lack of incentives and new project announcements, leading to concerns about future growth. REC was impacted by the absence of additional funds for rural electrification projects.
Followed by BPCL suffered due to no relief on fuel prices, subsidies, or new refinery projects. Finally, General Insurance Corporation of India experienced investor concerns about future growth due to the absence of new policies or incentives for the insurance sector.
Following is a list of PSU stocks with P/E less than 10:
1. Coal India Limited (CIL)
It is the world’s largest coal producer. As a Maharatna company under the Ministry of Coal, it operates 322 mines across India, supplying coking and non-coking coal for industries like power and cement.
The stock is currently priced at Rs. 378.75 and fell 0.22% in daily movement. Over the past year, it has dropped 16.33%, but in five years, it has gained 1034.67%. It has a P/E ratio of 5.94.
In FY2024, revenue grew 2.9% to Rs. 1,42,324 crore from Rs. 1,38,252 crore in FY2023. Profits declined 97.2%, dropping to Rs. 37 crore from Rs. 1,325 crore in FY2023.
2. REC Limited
It is a key financial institution supporting rural electrification and power infrastructure. Headquartered in New Delhi, it funds power generation, transmission, and distribution projects, improving electricity access in rural India while promoting sustainable development initiatives.
The stock is currently priced at Rs. 441.2, rising 1.62% in daily movement. Over the past year, it has dropped 13.32%, but in five years, it has gained 279%. It has a P/E ratio of 7.81.
In FY2024, revenue grew 20.3% to Rs. 47,517 crore from Rs. 39,486 crore in FY2023. Profits increased 26.7%, reaching Rs. 14,145 crore from Rs. 11,167 crore in FY2023.
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3. Bharat Petroleum Corporation Limited (BPCL)
A leading oil and gas company in India. Headquartered in Mumbai, it operates refineries and supplies fuels, lubricants, and petrochemicals while expanding into renewable energy to reduce its carbon footprint.
The stock is currently priced at Rs. 264.25, rising 0.65% in daily movement. Over the past year, it has dropped 12.22%, but in five years, it has gained 7.55%. It has a P/E ratio of 8.21.
In FY2024, revenue declined 5.3% to Rs. 4,48,083 crore from Rs. 4,73,187 crore in FY2023. However, profits surged 1,160.5%, reaching Rs. 26,859 crore from Rs. 2,131 crore in FY2023.
4. General Insurance Corporation of India
India’s sole national reinsurer. Headquartered in Mumbai, it provides reinsurance solutions for agriculture, health, and property insurance, helping insurers manage risks while fostering growth in the Indian insurance sector.
The stock is currently priced at Rs. 417, rising 0.34% in daily movement. Over the past year, it has gained 3.23%, but in five years, it has gained 53.31%. It has a P/E ratio of 8.21.
In FY2024, revenue declined 2.7% to Rs. 45,375 crore from Rs. 46,638 crore in FY2023, while profits dipped 3.2% to Rs. 6,686 crore from Rs. 6,907 crore.
Written By Fazal Ul Vahab C H
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