Staging a comeback: PSU stocks climb peaks, but valuation cliff awaits


Illustration: Binay Sinha

Listed central public sector undertakings (PSUs) such as Cochin Shipyard, REC, Bharat Heavy Electricals, Hindustan Aeronautics (HAL), and Punjab National Bank, among others, are some of the most loved stocks on the bourses after being off investor radar for many years.

The S&P BSE PSU, which tracks the market capitalisation of 56 listed PSUs, has been the top-performing index in recent months and touched a record high earlier this month. It is up 99.5 per cent in the past year compared to a 19.4 per cent rally in the benchmark S&P BSE Sensex during the same period.

Analysts attribute the

First Published: May 20 2024 | 11:20 PM IST

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