PSU Stocks to Buy: Siddharth Sedani’s top picks from Maharatna, Navratna and Miniratna — BEL, Coal India on the list

Market expert Anand Rathi's Siddharth Sedani on Wednesday recommended four public sector companies as his top picks under the theme “Anmol Ratna” for investors. The theme focuses on government-owned companies with strong fundamentals, robust earnings, and potential for long-term growth.

Sedani said the “Anmol Ratna” theme goes beyond the traditional government categorisation of Maharatna, Navratna, and Miniratna companies.

“These companies are critical to India’s growth journey and contribute around 19 per cent to the country’s GDP. They support government reforms, capital expenditure plans, and import substitution while being largely self-reliant,” he said.

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He noted that these companies offer strong earnings growth, projected at 13-14 per cent in the coming years. Their dividend yields are also higher than Nifty-listed companies, averaging around 3.4 per cent, compared to Nifty’s 1.3 per cent.

“These are financially strong companies with good cash flows and balance sheets. That is why the focus is on PSU stocks under the ‘Anmol Ratna’ theme,” he said.

Union Bank of India Share Price Target

Sedani recommended Union Bank of India with a target price of Rs 208. The bank has a loan book size of Rs 9.9 lakh crore and trades at nine times its price-to-book value.

Its return on assets stands at one per cent, and net interest income (NII) is expected to grow at a CAGR of 10 per cent. The bank has shown strong credit growth, improved asset quality, and moderated market movements.

Bharat Electronics Limited (BEL) Share Price Target

BEL was highlighted for its role in defence electronics, radar systems, and electronic warfare. The stock has a target price of Rs 500. The company holds 60 per cent market share in the defence electronics segment, with an order book exceeding Rs 74,000 crore.

Earnings for Q3 are estimated to grow 18 per cent, and the company benefits from increasing defence allocations and geopolitical tensions. Sedani expects a profit CAGR of 17 per cent.

Engineers India Limited (EIL) Share Price Target

EIL, an engineering and EPC player, received a target price of Rs 250. The company primarily serves the oil and gas sector and is expanding into green hydrogen, biorefinery, and defence segments.

Its return on equity is around 19 per cent, and it trades at 17 times price-to-earnings. EIL’s FY26 order book stands at around Rs 8,000 crore, with FY27 orders expected near Rs 13,000 crore. The company has strong cash reserves and solid fundamentals.

Coal India Limited Share Price Target

Coal India, a mining and energy company, has a target price of Rs 440. The company operates around 322 mines and has a return on capital employed of 24 per cent.

It trades at six times price-to-earnings and is expected to grow at a CAGR of 7 per cent in FY28. Coal India has diversified into lithium and other segments while maintaining a strong dividend yield.

Sedani said all four companies are government-owned and largely insulated, with a domestic business focus.

“The government’s full support and budget allocations make these companies strong candidates for the next six to twelve months,” he added.

He advised investors to consider these companies for medium to long-term positions. “These are Anmol Ratna PSUs that can offer both growth and steady returns, making them suitable for investors seeking quality government-backed stocks,” Sedani said.