Fund managers of top 10 fund houses by assets under management (AUMs) have shown considerable interest in public sector undertakings (PSUs) in February. A key reason for this is valuation (one-year forward basis) of key PSU companies are at multi-year lows and the discount between prominent PSU stocks and the Nifty is as high as 50per cent. Several stocks are trading at historic low valuations on the basis of price-to-earnings and price-to-book ratios. Fund managers believe improved outlook on both global and China growth, low oil prices and lower worries on India’s fiscal situation can lead to a re-rating for the segment. Here are five PSU stocks which have attracted large amount of buying from leading fund managers in February
In Dec, the Central Electricity Regulatory Commission (CERC) come out with draft tariff regulations which were perceived unfavourable for NTPC and other power companies. This resulted in the fall of NTPC's stock price which offered opportunity for fund managers to enhance their exposure to NTPC. Recently, CERC has notified final tariff regulations (FY20-FY24) which are extremely favourable to NTPC's business model in terms of high tariffs. Analysts expect NTPC's EPS to grow by more than 6per cen ..
The company is expected to benefit from a few revenueenhancing factors. One, the company's gas volumes are expected to swing to high tariff volumes from low tariff volumes. Two, the company is likely to benefit if Petroleum and Natural Gas Regulatory Board (PNGRB) revises tariff rates in the next six to eight months. Besides this, the company's capacity utilisation l ..
Factors such as a healthy order book (Rs 10,800 croreore), which gives revenue visibility of at least next three years, asset light business model, debt-free balance sheet, leadership position in hydrocarbon consulting business, which promises strong revenue growth in the next two years, foray into new business segments and incroreeasing contribut ..
In Dec, the Central Electricity Regulatory Commission (CERC) come out with draft tariff regulations which were perceived unfavourable for NTPC and other power companies. This resulted in the fall of NTPC's stock price which offered opportunity for fund managers to enhance their exposure to NTPC. Recently, CERC has notified final tariff regulations (FY20-FY24) which are extremely favourable to NTPC's business model in terms of high tariffs. Analysts expect NTPC's EPS to grow by more than 6per cen ..
The company is expected to benefit from a few revenueenhancing factors. One, the company's gas volumes are expected to swing to high tariff volumes from low tariff volumes. Two, the company is likely to benefit if Petroleum and Natural Gas Regulatory Board (PNGRB) revises tariff rates in the next six to eight months. Besides this, the company's capacity utilisation l ..
Factors such as a healthy order book (Rs 10,800 croreore), which gives revenue visibility of at least next three years, asset light business model, debt-free balance sheet, leadership position in hydrocarbon consulting business, which promises strong revenue growth in the next two years, foray into new business segments and incroreeasing contribut ..
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