Top 10 PSU Stocks in 1 Year: Rs 1 lakh investment in top stock has given Rs 6 lakh post-tax returns

Public Sector Undertakings (PSU) stocks have been performing well for over a year. The value of as many as 14 PSU stocks has risen more than 200 per cent in the one year (As per Value research data), while as many as 40 of them have turned multibaggers with at least a 100 per cent rise. The main reason behind this rise is the central government's high focus on PSUs. They are getting orders in abundance, their business is increasing, and as a result, their stock prices are skyrocketing. In this write-up, know about the top 10 PSU stocks and what a Rs 1 lakh investment in each of the stocks would have given an investor. Also, we are considering a long-term capital gain tax of 10 per cent on investments, which requires stocks to be held for a minimum of one year. Another factor that should also be taken into account is that long-term capital gain of up to Rs 1 lakh in a financial year are tax-exempt. One needs to pay a 10 per cent tax beyond that profit.   

Cochin Shipyard

Cochin Shipyard which hit an all-time high on Thursday, tops the list with a staggering rise of 654.83 per cent.

The stock has risen by 111.94 per cent in the last three years.

The large-cap company that builds ships has a market value of Rs 48,323.99 crore (as per the BSE website).

Had one invested Rs 1 lakh in the stock a year ago, they would have got Rs 7.55 lakh total by today's date.

If we exclude the invested amount and 10 per cent long-term gain from the amount, their net return would have been nearly Rs 6 lakh.

Indian Railway Finance Corporation

The stock that is trading at nearly its 52-week high has given a 471.51 per cent return in the one year.

The consistent performer has risen by 101.35 per cent in the three-year period.

The company that is into commercial financing for Indian Railways has a market value of Rs 2,48,955.04 crore.

An investment of Rs 1 lakh in the stock a year ago has swelled to Rs 5.72 lakh as of today's date. Post capital gain tax, an investor would have got Rs 4.45 lakh in return. 

HUDCO

The PSU that gets contracts for housing finance for central government projects is also one of the top performers with a 382.65 per cent return in a year.

The stock that hit an all-time high on Thursday has had a 79.63 per cent return in the three-year period.

The market value of the company stands at Rs 53,690.96 crore.

A lump sum investment of Rs 1 lakh investment has turned into Rs 4.83 lakh in the one year, of which Rs 3.55 lakh is the post-tax return.

REC 

Rural Electrification Corporation Limited (REC) is a Navratna that has given 318.57 per cent in the one year and over 500 per cent in the two years.

The PSU that provides loans to central/state sector power utilities has a market value of Rs 1,41,680.62 crore.

An investment of Rs 1 lakh in the stock has given a total of Rs 4.19 lakh, which means a Rs 2.97 lakh return post tax.

SJVN Ltd

The PSU that is in the business of hydroelectric power generation and transmission has given 317.08 per cent returns in a year and 77.94 per cent returns in the three-year period.

The large-cap company holds a market value of Rs 57,866.23 crore.

An investment of Rs 1 lakh in the PSU's stocks a year ago has become Rs 4.18 lakh as on today.

If we exclude the principal amount and long-term capital gain tax from it, post-tax returns will be Rs 2.96 lakh. 

Mazagon Dock

Another shipbuilder stock in the list also hit its all-time high on Thursday.

The stock's return in the one year is 317.14 per cent, while it has given a 144.66 per cent return in the three-year period (the highest among all PSUs).

The large-cap company has a market value of Rs 62,100.35 crore.

An investment of Rs 1 lakh in the stock has become Rs 4.18 lakh as of today's date, of which Rs 2.96 lakh in return post capital gain tax.

BHEL

The PSU's stock dipped a day ago after its subdued Q4 result, but its share recovered on Wednesday and appears to be in rude health overall with 286.44 per cent return in a year and a 61.91 per cent return in the three years.

The company that claims to be one of the largest engineering and manufacturing companies in India has a market value of Rs 1,06,551.14 crore.

An investor with a Rs 1 lakh investment in the BHEL stock has a total of Rs 3.87 lakh, of which Rs 2.68 lakh is in post-tax gains.

NBCC (India) 

The PSU that is into construction and engineering has given a return of 274.75 per cent in the one-year period.

The large-cap firm has a market value of Rs 26,964.00 crore.

A Rs 1 lakh investment in the company's shares has turned into Rs 3.75 lakh.

Post tax, one's return is nearly Rs 2.58 lakh on that investment.

Power Finance Corporation Ltd

Known as the financial backbone of the Indian power sector, the PSU's stock has given a return of 252.53 per cent in the one-year period and 70.23 per cent in the three years.

The company's market value as of today's date is Rs 1,55,104.78 crore.

The one who purchased PFC shares worth Rs 1 lakh has a total of Rs 3.53 lakh in today's date.

After paying long-term capital gain tax, they will have returns of Rs 2.38 lakh.

Ircon International 

The stock of one of the core PSU firms that is into railway and highway construction has given a return of 247.59 per cent in the one year and 77.12 per cent in the three-year period.

The large-cap firm holds a market value of Rs 26,466.11 crore.

A Rs 1 lakh investment in Ircon International's stock has given Rs 3.48 lakh in total.

It means, post-tax returns would have been Rs 2.33 lakh.