#MintPrimer | Stocks of #PSU have had a sterling rally this year. The 56-stock BSE PSU Index’s doubling outshines the #Sensex’ modest 24% return this fiscal amid a valuation re-rating backed by earnings. But this rally isn’t a mere bubble.
Mint explains: read.ht
Mint explains: read.ht
#MintPrimer | The #BSE #PSU Index has doubled to 18,918.03 in the current fiscal year through 20 February as mutual funds and retail investors have stepped up buying stocks with relatively lower free float.
Mint explains: read.ht
Mint explains: read.ht
#MintPrimer | From a cumulative 12.57 trillion PSU shares as of June end, active and passive mutual funds’ holding had jumped to 12.94 trillion shares at the end of January, says Fisdom research.
Mint explains: read.ht
Mint explains: read.ht
#MintPrimer | The government has budgeted for a capex of ₹11.11 trillion in FY25, up 11.1% from the record capex of ₹10 trillion targeted at infra and energy sectors, etc.
Mint explains: read.ht
Mint explains: read.ht
#MintPrimer | In the fiscal year so far, the trailing price-to-earnings multiple of the PSU index has risen 48% to 13.74 times. While the index price doubled, its earnings per share (EPS) expanded 35% to ₹1,376.
Mint explains: read.ht
Mint explains: read.ht
#MintPrimer | In the current fiscal the top 10 stocks that have contributed to 54% of the PSU index rally (5,081.37 out of 9,421 points) include SBI, NTPC, Power Grid Corporation, Coal India and ONGC.
Mint explains: read.ht
Mint explains: read.ht
#MintPrimer | While earnings have risen alongside prices, further upside will hinge on how earnings play out in the coming quarters. If earnings growth slows, valuations will look stretched and prices could correct.
Mint explains: read.ht
Mint explains: read.ht
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