PSU Stocks In Limelight On Wednesday — Should You Buy, Sell, Or Hold?
The analysts in question Vaishali Parekh from Prabhudas Lilladher and Rajesh Agarwal from AUM Capital shared their insights with NDTV Profit.
Coal India Ltd., Hindustan Copper Ltd., Oil and Natural Gas Corporation Ltd., Bank of Maharashtra, and Bharat Heavy Electronics Ltd. were some of the Public Sector Undertakings on analysts' radar on Wednesday.
PSUs are companies that are owned by the government. The government has to have at least 51% stake in the companies for them to be considered public undertakings.
The analysts in question Vaishali Parekh from Prabhudas Lilladher and Rajesh Agarwal from AUM Capital shared their insights with NDTV Profit.
Coal India
Despite its current performance, Coal India got a 'hold' from Rajesh Agarwal from a long term perspective owing to its huge capacity, "Thermal power is not going anywhere, and the kind of capacity coal india has makes it one of the largest across the world. With the kind of demand coming out from power sector, so I think the prospects are huge. If someone is looking for a long term stable kind of return, coal india would be a good choice. Our target for next one year is Rs 460. So any dip should be taken as an opportunity to accumulate", he stated.
Hindustan Copper
The public sector company got a 'buy' call from Rajesh Agarwal owing to the healthy going of the metal sector. He said that any hurdle in the way would be short term. "Metals are doing well, For a longer term horizon, it's one of the good buys in the metal space. Reserves are good, they're doing very well and numbers have been satisfactory. The best part is copper demand is going up day by day. With the demand going up and Hindustan Copper's pricing power I think one can continue to go long in copper."
ONGC
Vaishali Parekh suggested to sell ONGC shares stating, "this is one of the stocks which has been quite a laggard. And it is showing signs of weakness. There's not much of an upside coming in right now."
Bank of Maharashtra
Rajesh maintained a strongly bullish stance and gave a 'hold' call on Bank of Maharashtra amid improving business, clearing balance sheet, and the prospect of another RBI rate cut. "All of these are going to help PSU banks because of their bond portfolio among other things. Bank of Maharashtra in particular is one of the strongest banks in the entire space. The numbers had been the best barring the last two three quarters", he stated.
