Nifty 50 dipped close to 10 percent in the last six months. All sectors were impacted by the bloodbath. JM Financials’ analyst Rahul Sharma believes that Public Sector Enterprise (PSE) stocks could have seen their lowest level, so the current market correction is a buying opportunity.
Listed below are the 4 PSU stocks on which JM Financial has a positive outlook
REC Ltd
REC, a Central Public Sector Undertaking under the Ministry of Power, finances projects across the entire power sector value chain, from generation to distribution.
With a market capitalization of Rs 1 lakh crore, REC Ltd was trading at Rs 432.20, marking a 2 percent increase compared to the previous closing price. The stock is currently trading at a discount of 34 percent from its 52-week high of Rs 653.90.
JM Financial has given the stock a target of Rs 600, indicating an upside potential of 39 percent.
Power Finance Corporation Ltd
Power Finance Corporation Limited is an Indian NBFC that extends financial assistance to the power industry. Its products are project term loans, lease financing for equipment acquisition, and short-to-medium-term loans for equipment manufacturers.
With a market capitalization of Rs 1.3 lakh crore, Power Finance Corporation Ltd was trading at Rs 417.45, marking a 2 percent increase compared to the previous closing price. The stock is currently trading at a discount of 28 percent from its 52-week high of Rs 580.35.
JM Financial has given the stock a target of Rs 525, indicating an upside potential of 26 percent.
NTPC Ltd
NTPC Limited is a power-generating company mainly involved in generating and supplying bulk electricity to state power utilities. The company has two segments: Generation and Others, with the main business dealing in power generation and distribution.
With a market capitalization of Rs 3.4 lakh crore, NTPC Ltd was trading at Rs 353.80, marking a slight decrease compared to the previous closing price. The stock is currently trading at a discount of 21 percent from its 52-week high of Rs 448.30.
JM Financial has given the stock a target of Rs 440, indicating an upside potential of 24 percent.
Oil and Natural Gas Corporation Ltd
Oil and Natural Gas Corporation Limited deals with natural gas and crude oil. The company deals with two primary fields: Exploration & Production and Refining & Marketing. The company operates within India while also acquiring international oil and gas assets.
With a market capitalization of Rs 3 lakh crore, ONGC was trading at Rs 240.05, marking a slight increase compared to the previous closing price. The stock is currently trading at a discount of 30 percent from its 52-week high of Rs 344.60.
JM Financial has given the stock a target of Rs 300, indicating an upside potential of 25 percent.
Written by Shwetha Sairam
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