Top PSU stocks that have jumped over 200% in the past year
Shares of public sector companies (PSUs) have trended upward, recovering in the past year. The Nifty PSE index outperformed the Nifty benchmark for the first time in 5 years.
The Nifty PSE index has increased 83% in the past year, compared to a 55% increase in the Nifty50 index during this period. So far in 2021, the PSE index has risen by more than 50% compared to a 30% increase for the Nifty.
Past performance shows that the PSE index has underperformed the benchmarks. In 2020, 2019 and 2018, Nifty PSE lost 13%, 5% and 21% respectively against an increase of 15%, 11% and 3%, respectively, of the Nifty50 index.
Most pundits are also positive about public sector stocks in the short to medium term and expect these stocks to revalue again in the future due to divestment plans, supply issues, etc. . The recent sale of Air India to Tata Group is a positive trigger for PSU shares. While privatization processes can be long and tedious, they could also represent a huge potential opportunity for stocks.
Most of the PSU stocks have generated positive returns for their investors over the past year. Let’s look at stocks that have risen over 200%.
Hindustan Copper: The stock has increased over 290% in the past year. A rise in copper prices, a reduction in production in China are some of the main reasons for its rise. It is a state-owned company owned by the central public sector enterprise under the Ministry of Mines. It is the sole producer of copper and is engaged in the exploration, exploitation, extraction of copper and copper ore, including mineral enrichment, smelting and refining. In the first quarter, the company announced a 53.6% increase in its consolidated net profit to ??45.63 crores. The government recently decided to sell a 5 percent stake in the company through a sell offer.
NALCO: The stock has climbed nearly 250% in the past year. Aluminum prices recently hit an all-time high and declining production in China caused the NALCO share price to rise. NALCO is a Navratna company registered in 1981 under the Ministry of Mines. The Company’s activities are in mining, metals and electricity. The company announced a massive jump in its first quarter net profit to ??347.73 crore compared to ??16.63 crore in the quarter of last year. Operating revenues increased 79.2% to ??2,474.55 crores against ??1,380.63 crore over the period of last year.
NAVIGATE: The stock has risen more than 240% in the past year. The main reason for this rally is the rise in commodity prices. In addition, the government’s infra boost also added to the positive sentiment. Investor Ace Rakesh Jhunjhunwala also added the stock to his portfolio during the June 2021 quarter. In the first quarter, SAIL went black and reported net profit of ??3,897.36 crore against a loss of ??1,226.47 in the quarter of last year. Net profit also more than doubled for ??20,754.75 crore compared to ??9,346.21 crore over the period of last year. SAIL is the largest steel company in the country and is engaged in the manufacture of flat products, such as hot rolled coils (HR), HR plates, cold rolled coils (CR), pipes and electrical sheets, and long products, such as thermomechanically treated rod and wire rod (TMT).
Indian Bank: The stock has climbed 220% in the past year. In the first quarter, the public sector lender announced a 220% increase in its net profit to ??1,182 crores against ??369 crore in the quarter of last year. The total income was ??11,500 crore in the first quarter vs. ??11,447 crore in the period of one year ago. The exceptional growth of the lender is the result of increased bottom line, non-interest income and lower expenses and operational efficiency.
IRCTC: The stock has risen 217% in the past year. The stock has been a consistent performance, since its debut in October 2019, increasing nearly 900% from its listing until October 19, 2021. In the last 3 months alone, the stock has jumped over 100% thanks to higher tickets. reservations and travel plans as the economy opens up after COVID restrictions. Plus, the announcement of a stock split added to the gains. It was also quoted at a premium of over 100 percent at ??644 against its issue price of ??320. The company’s expansion plans present additional upside potential in the long term. The company has expanded its business to include buses, airline tickets, and tour and travel operators. This could open up a whole new potential opportunity for the company to strengthen its position. In addition, the company is also looking to apply for a payment aggregator license from the RBI, which will not only make it easier for customers, but also generate additional revenue.
Apart from these, Oil India, SBI, BHEL, ONGC, J&K Bank, Bharat Electronic, etc. are also among other PSU stocks that have doubled investor wealth over the past year.
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