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Will Modi 3.0 spur rally in PSU stocks again? Selectively, say analysts

PSU stocks to buy: Analysts caution that premium valuation of PSU stocks may lead to limited upside from here

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Nikita Vashisht New Delhi
PSU stocks to buy: Shares of public sector undertakings (PSUs), which took a sharp beating on June 4 amid a surprising 2024 Lok Sabha election result, should be accumulated at lower levels, say analysts.

Their theory? PSU stocks are reaping benefits of significant policy changes and will remain the prime beneficiaries of the government's focus on capital expenditure ahead.

"Significant investments in infrastructure, energy, and defence projects have created a predictable order pipeline for PSU companies, boosting revenue streams. Furthermore, PSUs have demonstrated steady earnings growth, consistent dividend payouts, and hold strategic importance in critical sectors, which strengthens investor confidence,"

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First Published: Jun 13 2024 | 9:58 AM IST

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