PSU stocks, giants of India’s public sector, are enticed with stability and growth. Commanding key industries, they boast steady income and dividends. While linked to government and economic tides, well-picked PSU stocks can add value and income to a portfolio.
Here are some newly listed PSU stocks
Indian Renewable Energy Development Agency (IREDA)
The Indian Renewable Energy Development Agency (IREDA), which was established in March 1987, is a Mini Ratna (Category – I) government enterprise that promotes, develops, and provides financial assistance for new and renewable energy projects, as well as energy efficiency and conservation projects.
Looking at the IREDA financials, their net revenue increased by 48.6 percent year over year, from Rs 791.33 crore in Q2FY23 to Rs 1176.62 crore in Q2FY24. Furthermore, net profit increased by 54 percent year on year, from Rs 184.3 crore in Q2FY23 to Rs 284.73 crore in Q2FY24.
Indian Renewable Energy Development Agency (IREDA) is a midcap company with a market capitalization of Rs 29,740 crores. The share price of the company rose 83 percent since it was listed on November 29, 2023.
On Friday the share price opened 0.08 percent down to Rs 120.40 per share from its previous close of Rs 120.30. The company has a low price-to-earnings ratio of 31, a return on equity of 15 percent, a return on capital employed of 8 percent with a net profit margin of 24 percent.
Indian Railway Finance Corp Ltd (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.
The IRFC report shows that net revenue increased by 16% 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 Corp Ltd (IRFC) went public on January 18, 2021. It is a large-cap company with a market capitalization of Rs 1,09,000 crores. The company’s share price increased 189 percent in six months and 189 percent year to date. The stock was listed on January 18, 2021.
On Friday, the stock opened 2.5 percent higher at Rs 95 per share, up from its previous close of Rs 92.65. The company 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.
Railtel Corporation of India Limited
RailTel was founded in 2000 to develop a nationwide broadband and VPN service, telecom, and multimedia network to modernize Indian Railways’ train control operation and safety system.
Railtel Corporation of India Limited reported that net revenue increased 39.6 percent year on year, from Rs 429 crore in Q2FY23 to Rs 599 crore in Q2FY24. Furthermore, year on year, net profit increased by 23 percent, from Rs 55 crore in Q2FY23 to Rs 68 crore in Q2FY24.
Railtel Corporation of India Limited has a market capitalization of Rs 9,292 crores and is a small-cap company. The company’s share price increased 130 percent in six months and 133 percent year to date since it was listed on February 16, 2021.
The share price opened at Rs 301.45 on Friday, up 0.54 percent from the previous close of Rs 299.2. With a low price-to-earnings ratio of 46, a 12 percent return on equity, a 16 percent return on capital employed, a 9 percent net profit margin, and no debt, the company exhibits several positive attributes.
Mazagon Dock Shipbuilders Limited
Mazagon Dock Shipbuilders Limited (MDL), Mumbai, was founded in 1774 and is a well-known shipyard in India. MDL began as a small dry dock and has grown into a renowned shipbuilding company.
According to the Mazagon Dock Shipbuilders Limited report, the net revenue increased by 7.4 percent year over year, from Rs 1,702 crore in Q2FY23 to Rs 1,828 crore in Q2FY24. In addition, the net profit increased by 56 percent year over year, from Rs 200 crore in Q2FY23 to Rs 313 crore in Q2FY24.
Mazagon Dock Shipbuilders Ltd is a midcap company with a market capitalization of Rs 42,062 crores. The share price of the company rose 97 percent in six months and 164 in the year to date the company was listed on October 12, 2020.
The opening price of the shares on Friday was Rs 2,089.70 per share, up 0.8 percent from the previous close of Rs 2072.7. The company has a low price-to-earnings ratio of 31, a return on equity of 24 percent, a return on capital employed of 32 percent, and a net profit margin of 13 percent. It is also debt-free.
Written by Sriram KV
Disclaimer
The views and investment tips expressed by investment experts/broking houses/rating agencies on tradebrains.in are their own, and not that of the website or its management. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution while investing or trading in stocks. Dailyraven Technologies or the author are not liable for any losses caused as a result of the decision based on this article. Please consult your investment advisor before investing.
