Public sector unit stocks continue to draw investor interest, with analysts recommending selective positions across banks and defence sector players. Market experts Saurabh Jain of SMC Global Securities and Ajit Mishra of Religare Broking have outlined their views on key PSU counters including Bank of Baroda Ltd., Canara Bank Ltd., and Bharat Dynamics Ltd., suggesting a hold strategy across the board.
Jain suggests holding Bank of Baroda, citing favourable valuations and growth outpacing industry averages. He notes, "PSU banks are performing better than private sector peers. Bank of Baroda has a clean balance sheet and is growing faster than the sector, making it a solid hold." The bank is one of India's largest public sector lenders, offering services across corporate, retail, and international banking.
On Canara Bank, Jain remains optimistic, calling it "one of the strongest banks in the PSU space". With relatively cheap valuations and a stable asset quality, he recommends holding the stock for one to two years for meaningful upside. Canara Bank has a pan-India presence and caters to both retail and industrial credit markets.
Ajit Mishra's outlook on Bharat Dynamics Ltd.—a defence PSU—suggests near-term caution but long-term conviction. He attributes recent price weakness to profit-booking across defence stocks and advises holding till Rs 1,800, with a rebound target at Rs 1,900. Bharat Dynamics manufactures missile systems and defence equipment for India's armed forces and is a key supplier in strategic defence programs.
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