Showing posts with label Indian Oil. Show all posts
Showing posts with label Indian Oil. Show all posts

Friday, March 14, 2014

PSU Shares - Gold Mine or Black Hole ?

Dear Investors,

The recent rally in BSE and NSE has given a big boost to the most neglected sector - Public Sector Undertakings.  

BSE PSU Index comprises of 59 scrips out of which 24  belong to Nationalized Banks.  Rest 35 shares belong to core business / manufacturing activities.  Many stocks in this sector are under owned by both FIIs and Domestic Institutions, HNIs for the simple reason that these are thoroughly mis-managed.

The Sector is out of investment radar of large investors due to uncertainty. There are several reasons for the downturn in PSU stocks include decline in net profit and the government's move to sell shares of some of these companies via offer for sale, at a discount to prevailing market price.  Any further equity dilution means - more supply depressing the market price.  FPOs by the government has become a nightmare for the Retail investors as they are now trading at deep discount to their issue price.  

For the smart investors this gives a golden opportunity to buy into high quality stocks at attractive valuations.  The top ten identified by our Research Team is given below :

  1. BHEL
  2. BPCL
  3. BEML
  4. Coal India
  5. Engineers India
  6. GAIL
  7. Hindustan Copper
  8. Indian Oil
  9. NMDC
  10. ONGC
Investors should carefully analyze the price movements of these shares besides the Q4 results for 2014 before taking any investment decisions.

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