Business Standard

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

Analysts warn of price peaks amid government spending surge. Is the rally running out of steam? Brokerages sound caution as upside targets falter

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

Krishna Kant Mumbai
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

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

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