Public Sector Undertakings (PSUs) in India are government-owned corporations that play a crucial role in the country’s economy and infrastructure development. Established primarily through nationalisation efforts beginning in the 1950s, these entities were created to provide essential services and promote equitable economic growth.
The government holds at least 51 percent of the paid-up share capital in PSUs, allowing it to control management and operations. PSUs are categorised based on their financial performance and operational autonomy into several groups: Maharatna, Navaratna, and Miniratna.
These undertakings are vital for sectors such as energy, telecommunications, manufacturing, and transportation, contributing to job creation and socio-economic welfare.
They often undertake large-scale projects that require substantial investments, which the private sector may avoid due to risk factors. Overall, PSUs are integral to India’s strategy for balanced regional development and industrialization.
Following are a few PSU stocks that are currently trading up to 40 percent down from their 52-week high:
Housing & Urban Development Corporation Limited
With a market cap of Rs. 46,233.8 crores, the shares of HUDCO surged by 1.5 percent on BSE to Rs. 232.45 during the morning trading session of Wednesday.
The stock hit its 52-week high at Rs. 353.95 on 12th July, and compared to the current trading price of Rs. 231.35, the stock is trading at a discount of nearly 35 percent.
The company reported a significant growth in revenue from operations, with around an 18.7 percent YoY rise from Rs. 1,843 crores in Q1 FY24 to Rs. 2,188 crores in Q1 FY25. Similarly, the net profit increased by about 25 percent YoY from Rs. 446 crores to Rs. 558 crores, over the same period.
The stock has delivered multibagger returns of nearly 164.7 percent in the last one year, and around 79 percent of positive returns year-to-date.
Housing & Urban Development Corporation Limited (HUDCO) is a housing finance company under the Ministry of Housing and Urban Affairs (MoHUA) and is engaged in the business of financing housing and urban development activities in India.
BEML Limited
With a market cap of Rs. 15,216.5 crores, the shares of BEML surged by 1.7 percent on BSE to Rs. 3,656.7 during the morning trading session of Wednesday.
The stock hit its 52-week high at Rs. 5,489.15 on 5th July, and compared to the current trading price of Rs. 3,653.9, the stock is trading at a discount of nearly 34 percent.
The company has reported a significant growth in revenue from operations, with around a 4 percent YoY rise from Rs. 3,899 crores in FY23 to Rs. 4,054 crores in FY24. Similarly, the net profit increased by around 78.5 percent YoY from Rs. 158 crores to Rs. 282 crores, over the same period.
The stock has delivered positive returns of nearly 60 percent in the last one year, as well as around 29 percent returns year-to-date.
Established in 1964, BEML Limited operates in three different business verticals: Mining & Construction, Defence & Aerospace and Rail & Metro.
The company manufactures a wide range of heavy earthmoving equipment serving the mining and construction industry, vehicles for defence forces and coaches for the metro and Indian Railways.
IRCON International Limited
With a market cap of Rs. 20,926.5 crores, the stock surged by 2 percent on BSE to Rs. 222.75 during the morning trading session of Wednesday.
The stock hit its 52-week high at Rs. 351.65 on 15th July, and compared to the current trading price of Rs. 222.5, the stock is trading at a discount of nearly 38 percent.
The company has reported a decrease in revenue from operations, with around a 17.3 percent YoY rise from Rs. 2,764 crores in Q1 FY24 to Rs. 2,287 crores in Q1 FY25. In contrast, the net profit increased by nearly 20 percent YoY from Rs. 187 crores to Rs. 224 crores, over the same period.
The stock has delivered positive returns of nearly 67.4 percent in the last one year, as well as around 27.7 percent returns year-to-date.
Ircon International Limited commenced its business in 1976 as a railway construction company and diversified progressively since 1985 as an integrated engineering and construction PSU specialising in large and technologically complex infrastructure projects in various sectors such as railways, highways, etc.
Garden Reach Shipbuilders & Engineers Limited
With a market cap of Rs. 19,342 crores, the shares of one of the leading warship builders in India surged by 2.6 percent on BSE to Rs. 1,706.25 during the morning trading session of Wednesday.
The stock hit its 52-week high at Rs. 2,834.6 on 5th July, and compared to the current trading price of Rs. 1,688.5, the stock is trading at a discount of nearly 40 percent.
The revenue from operations of Garden Reach Shipbuilders stood at Rs. 1,010 crores in Q1 FY24-25, rising by 33.6 percent YoY from Rs. 756 crores in Q1 FY23-24, accompanied by a growth in net profit of around 13 percent YoY to Rs. 87 crores from Rs. 77 crores, during the same period.
The stock has delivered multibagger returns of nearly 115 percent in the last one year, and around 93.3 percent of positive returns year-to-date.
Incorporated in 1934, Garden Reach Shipbuilders & Engineers Limited is mainly engaged in the construction of warships. The Company was taken over by the Government of India in 1960.
Garden Reach Shipbuilders aims to become a Navratna company by 2030 and be globally recognised as the best Indian Shipyard company.
Written by Shivani Singh
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