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Top 5 PSU Stocks to Invest in India for 2024
Table of Contents
Introduction
While for most people, the New Year starts on January 1st, for us traders, the New Year begins today – the start of the financial year. And those of us who engaged in tax harvesting have likely made some savvy investments already, especially considering the recent market trends.
Reflecting on the past few months, PSU stocks were dominating the market scene, whether they were related to banks or railways. The primary reason behind this surge was the promise of multibagger returns. However, as the market recently experienced a minor correction, these very stocks witnessed a significant downturn of up to 25%, causing panic among investors. Additionally, midcap and smallcap indices took an even greater hit.
Let's dive into the current scenario. Despite the recent corrections, many PSU stocks are still at attractive valuations, with some even trading below their book value. That's why I've curated a list of the top 5 PSU stocks in 2024, but before we proceed, let me emphasize that my selection criteria may differ from yours, so keep an open mind.
I've based my selections on two main criteria for Top 5 PSU Stock in 2024: fundamental ratios and future thematic prospects. Recently, I even made a video discussing the sectors that could potentially shine in the future.
Now, Let's Examine these stocks and see what their Fundamentals and Charts Reveal.
1- PowerGrid (Energy)
PowerGrid is not only a Maharatna PSU but also India's largest electric power transmission company, operating under the Ministry of Power. It supplies a whopping 45% of India's power needs.
2- HAL (Defence)
HAL stands out as the sole company in the Indian defence sector that covers aircraft manufacturing, maintenance, and related services. The Indian Air Force heavily relies on HAL.
3- REC Ltd (Financing to Top Power & Solar Projects)
REC has been in the spotlight for financing projects like the PM Suryoday Yojna, with a whopping sanction of 1.2 lakh crores. It has achieved several milestones since its inception, including being the first PSU to issue Green Bonds on the London Stock Exchange.
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4- Bank of India (Banking Sector)
With over 5000 branches and 6,000 ATMs across India, Bank of India has a significant presence in the banking sector.
5- ONGC (OMC)
ONGC reigns as India's largest crude oil and natural gas company, contributing nearly 71% of the country's total domestic production.
Remember, these insights serve to empower you with a clearer picture so you can make informed decisions. This isn't about buy or sell recommendations; it's about understanding the landscape.
Stay tuned for more updates and insights. Thank you for joining me on this journey towards smarter investing.
Disclaimer: This Stock Analysis is only for informational purposes and should not be considered as investment advice. Always do your research and consult with a financial advisor.
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