PSUs, or public sector undertakings, are inextricably linked to the country’s core sectors and have successfully built the country’s industrial base. The majority of these businesses are owned by the Indian government.
Ircon International Ltd:
Ircon International Limited (IRCON) began as a railway construction company in 1976 and has gradually diversified as an integrated engineering and construction PSU specializing in large and technologically complex infrastructure projects in various sectors such as railways, highways, and so on.
Net revenue of Ircon International Ltd increased by 33.4 percent year on year, from Rs 2,238 crore in Q2FY23 to Rs 2,986 crore in Q2FY24. In addition, the net profit increased by 40 percent year over year, from Rs 159 crore in Q2FY23 to Rs 223 crore in Q2FY24.
The small-cap company with a market capitalization of Rs 16,500 crore, the share price opened at 0.05 percent up Rs 172 from the previous close of Rs 171.90 on Monday.
The share price of the company increased by 108 percent in six months and 194 percent year to date. For example, if an investor invested Rs 1 Lakhs a year ago the current value would be 2.94 lakhs.
Indian Railway Finance Corporation (IRFC):
Indian Railway Finance Corporation was established in 1986 and obtains funding from the financial markets to support the creation or purchase of assets that are subsequently leased as finance leases to the Indian Railways.
On Monday, the stock opened 1.2 percent higher at Rs 95.9 per share, up from its previous close of Rs 94.7. Indian Railway Finance Corp Ltd (IRFC) went public on January 18, 2021. It is a large-cap company with a market capitalization of Rs 1,23,000 crores.
Looking at the financials of IRFC their net revenue increased by 16 percent year on year, from Rs 5,810 crore in Q2FY23 to Rs 6,767 crore in Q2FY24. In addition, the net profit decreased by 9.5 percent year over year, from Rs 1,714 crore in Q2FY23 to Rs 1,550 crore in Q2FY24.
Indian Railway Finance Corporation (IRFC) has a price-to-earnings ratio of 17, a return on equity of 14 percent, a return on capital employed of 5 percent with a net profit margin of 26 percent.
The company’s share price increased 186 percent in six months and 187 percent last year. For instance, if an investor invested Rs 1 Lakhs a year ago the current value would be 2.87 lakhs.
Rail Vikas Nigam Ltd:
Rail Vikas Nigam Ltd was established in 2003 by the Government of India to carry out various rail infrastructure projects assigned by the Ministry of Railways, such as doubling,
gauge conversion, railway electrification, new lines, major bridges, workshops, Production Units, and freight revenue sharing.
On Monday, the share price of the company closed at 0.4 up Rs 184 from its previous close of Rs 183.15 the market capitalization of the company is Rs 38,080 Crores.
According to the company’s financial statements, net revenues increased 0.11 percent from Rs 4,908 crores in Q2FY23 to Rs 4,914 crores in Q2FY24. Additionally, net profit increased 22 percent during the same period, from Rs 302 crores to Rs 370 crores.
The share price of the company has risen by 46 percent in six months and 166 percent in the year to date. For instance, if an investor invested Rs 1 Lakh year to date the current value would be 2.66 lakhs.
Rail Vikas Nigam Limited has a low price-to-earnings ratio of 24 when compared to its peers, a 20 percent return on equity, a 17 percent return on capital employed, a 3.1 percent dividend yield, and a 0.88 debt-to-equity ratio.
Written by Sriram KV
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