Some large mutual fund companies showed considerable interest in the shares of public sector companies (PSUs) in February
1. Large Mutual Funds showed considerable interest in shares of government companies in February
2 . The discount between the Nifty 50 index and the shares of government companies has reached 50 percent.
3. Valuations of government companies have come at the lower levels of many years.
Some large mutual fund companies showed considerable interest in the shares of public sector companies (PSUs) in February. The reason for this is that the valuation of government companies has come at the lower levels of many years.
Apart from this, the discount between the Nifty 50 index and the shares of government companies has reached 50 per cent. There are several PSU shares, which are trading at lower levels on the basis of price-to-earning (PE) and price-to-book (PB) ratio.
Fund managers' attitudes have improved after crude oil prices, improving India's fiscal deficit situation and global growth and China's growth rate improved. In this, the ratings of government shares are showing improvement. Understand, big managers of fund managers put on five PSU shares:
NTPC MARKET CAP: its market capitalization of Rs 1,25,331 Crores and DSP MF is a buyer
In December, the Central Electricity Power Commission (CERC) had presented a draft on tariff rules, which was deemed to be against several power companies including NTPC. Because of this, this stock has dropped significantly. This has made it attractive for investment.
Recently, CERC clarified that tariff rules can prove beneficial for NTPC. Analysts believe that in this period, NTPC's earnings per share can be increased by 6 percent.
GAIL: its market capitalization of Rs 79,266 crore and ICICI Prudential Mutual Fund is a buyer.
It is expected that the revenue of the company can increase. With the prices, the company's gas volume is expected to increase. At the same time, the company can also benefit from the revised rates of Petroleum and Natural Gas Regulatory Board (PNGRB) in the next six to eight months.
Apart from this, there is scope for substantial improvement in the capacity utilization level of the company, which was 74 per cent in FY 19. By the year 21, it can reach 98 percent. This will increase the company's earnings per share (EPS) by 8 to 10 percent over the next two years.
Engineers India : its market capitalization of Rs 7,273 Crores and Kotak Mutual Fund is a buyer.
With orders of Rs 10,800 crore, the company's order book looks quite strong. With this, revenue growth will be good for the next three years. The business model of the company is asset lite, the balance sheet is debt free. Its hydrocarbon concentration is a prominent place in the market.
In the next two years, the company is planning to move into several new business segments. It has also attracted the attention of investors. If the company's plans are implemented, its share per share (EPS) can increase from 6 to 9 per cent in the next two years.
Coal India: its market capitalization of Rs Rs 1,51,088 crores and Aditya Birla Sun Life Mutual Fund / DSP Mutual Fund is a buyer
Coal India, which owns the world's most valuable coal producers and owns the largest coal reserves in the world, owns 80 percent of the Indian coal market. This company will get the most benefit of coal shortage in India.
The company has a monopoly in the market in a way. The volume of the company is unrivaled. There is less chance of a reduction in prices because there is already some offers in c
omparison to the interstate markets and its household is more interested in increasing the product.
1. Large Mutual Funds showed considerable interest in shares of government companies in February
2 . The discount between the Nifty 50 index and the shares of government companies has reached 50 percent.
3. Valuations of government companies have come at the lower levels of many years.
Some large mutual fund companies showed considerable interest in the shares of public sector companies (PSUs) in February. The reason for this is that the valuation of government companies has come at the lower levels of many years.
Apart from this, the discount between the Nifty 50 index and the shares of government companies has reached 50 per cent. There are several PSU shares, which are trading at lower levels on the basis of price-to-earning (PE) and price-to-book (PB) ratio.
Fund managers' attitudes have improved after crude oil prices, improving India's fiscal deficit situation and global growth and China's growth rate improved. In this, the ratings of government shares are showing improvement. Understand, big managers of fund managers put on five PSU shares:
NTPC MARKET CAP: its market capitalization of Rs 1,25,331 Crores and DSP MF is a buyer
In December, the Central Electricity Power Commission (CERC) had presented a draft on tariff rules, which was deemed to be against several power companies including NTPC. Because of this, this stock has dropped significantly. This has made it attractive for investment.
Recently, CERC clarified that tariff rules can prove beneficial for NTPC. Analysts believe that in this period, NTPC's earnings per share can be increased by 6 percent.
GAIL: its market capitalization of Rs 79,266 crore and ICICI Prudential Mutual Fund is a buyer.
It is expected that the revenue of the company can increase. With the prices, the company's gas volume is expected to increase. At the same time, the company can also benefit from the revised rates of Petroleum and Natural Gas Regulatory Board (PNGRB) in the next six to eight months.
Apart from this, there is scope for substantial improvement in the capacity utilization level of the company, which was 74 per cent in FY 19. By the year 21, it can reach 98 percent. This will increase the company's earnings per share (EPS) by 8 to 10 percent over the next two years.
Engineers India : its market capitalization of Rs 7,273 Crores and Kotak Mutual Fund is a buyer.
With orders of Rs 10,800 crore, the company's order book looks quite strong. With this, revenue growth will be good for the next three years. The business model of the company is asset lite, the balance sheet is debt free. Its hydrocarbon concentration is a prominent place in the market.
In the next two years, the company is planning to move into several new business segments. It has also attracted the attention of investors. If the company's plans are implemented, its share per share (EPS) can increase from 6 to 9 per cent in the next two years.
Coal India: its market capitalization of Rs Rs 1,51,088 crores and Aditya Birla Sun Life Mutual Fund / DSP Mutual Fund is a buyer
Coal India, which owns the world's most valuable coal producers and owns the largest coal reserves in the world, owns 80 percent of the Indian coal market. This company will get the most benefit of coal shortage in India.
The company has a monopoly in the market in a way. The volume of the company is unrivaled. There is less chance of a reduction in prices because there is already some offers in c
omparison to the interstate markets and its household is more interested in increasing the product.
National Aluminum Company (Nalco): its market capitalization of Rs 10,167 crores and ICICI Prudential Mutual Fund is a buyer.
Nalco Navratna is a government company that produces aluminum. It has a 6.8 metric tonne capacity bauxite mine, an aluminum refinery of 2.23 metric tonnes and an aluminum smelter of 460 kg per annum.
Apart from this, its power generation capacity is 1,200 MW. Its main location is in Odisha, which makes its operating economical, the company is debt-free and offers a good dividend. Because of this, it can become a very attractive and defensive bet for investors.
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