Public sector companies are taking on ambitious projects aligning with the government s policy push, but some of these may be beyond their capabilities
Probably banking is a word which many may not like to hear given the fact that the fall has been led by the banking sector. But the fact is short term market moves are different from what is happening in the real business. In the case of PSU banks, there has been an improvement in performance in the last two quarters. Yes, there will be some cyclical pressure on margins but beside margins there is more to PSU banking space, which is credit off take that too from large private corporates. Given the higher probability of capex cycle is likely to revive, these banks are much better placed due to the size and skill set to lend to such sectors.
The coal public sector units have identified about 3,075 hectares of afforested non-forest de-coaled land suitable for Accredited Compensatory Afforestation (ACA). Government has said that the public sector units operating in the coal sector have brought 18,849 hectares under green cover in the last 10 years by planting 42.3 million saplings, the government on Monday said.
Investors in India s public sector have been rewarded for their investment, with companies like NTPC, Coal India, LIC, IRFC, REC, and IOC benefiting from government policies and policy continuity. The performance of listed PSUs in 2023 validates the government s economic management and execution through state-owned enterprises. Governance reforms and the government s intention to trim ownership in PSUs promote efficiency.
Few years back, for a PSU stock to do well there was an unwritten rule on Dalal street. Is that company a divestment candidate? If yes, then the street would look at in a positive manner otherwise it was a no go area. Nobody on the street was interested in looking at whether the company is growing at a good enough rate, what the business was, whether it had any moat or not. Over the years, as no divestment took place, interest in PSU came down. The only time there was some activity at these stocks was when dividends were announced as the yield was high in these stocks. But then all of sudden things changed. In the last nine months, PSU stocks are the new stars of Dalal street. Will 2024 see the continuation of this trend ?