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Jefferies stays bullish on PSU stocks: SBI, Coal India, NTPC lead the way

Notwithstanding the recent sharp decline in the stocks of public sector companies, analysts at Jefferies remain bullish on this segment. State Bank of India, Coal India, and NTPC are their top picks in this space, they said in a recent note. The public sector undertaking (PSU) or state-owned enterprise (SOE) index, with a 70-percentage-point outperformance versus the National Stock Exchange Nifty50 over the past 12 months, comes after a decade of underperformance before 2020.

PSU bank stocks vs private banks: Who will win the race in the tale of two opposites

Private banks are trading at a price-to-book (P/B) valuation of 2.3 against the 10-year average of 2.5. On the other hand, the PB of PSU banks is at 1.2 against the long term average of 0.8.

Bull run in India state-owned firms shares faces earnings risk

Companies in the BSE PSU Index beat analysts’ expectations by a mere 1% in the three months ended December, the slowest pace in six quarters, according to data compiled by Bloomberg.

Bull Run in India State-Owned Firms Shares Faces Earnings Risk

Bull Run in India State-Owned Firms Shares Faces Earnings Risk
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Bull Run in PSU Shares Faces Earnings Risk | Indian News | India Business News

India Business News: The sizzling rally in India’s state-owned firms may be at risk of sputtering as earnings momentum fizzles and technicals show the run is now looking stretched. Companies in the BSE PSU Index beat analysts’ expectations by a mere 1% in the three months ended December, the slowest pace in six quarters. Recent earnings of several state-owned stocks offer little support.

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