PSU (Public Sector Undertaking) stocks refer to shares of companies that are owned or controlled by the government and these companies operate across various sectors, including energy, infrastructure, and finance.
A P/E (Price-to-Earnings) ratio lower than the industry average suggests that a stock may be undervalued relative to its peers. This could indicate that the company is trading at a discount, potentially due to market sentiment, short-term challenges, or investor concerns..
The 200-day moving average (200 DMA) is a widely used technical indicator in financial markets. It is calculated by taking the average closing prices of a security over the past 200 days. One of the primary reasons the 200-day moving average is popular is its ability to act as a support or resistance level. When a stock’s price is below the 200 DMA, it is often considered to be in a bearish phase. However, it could also present a buying opportunity if the stock shows signs of reversal or if it is oversold.
The stocks to watch out for are listed below
Coal India Limited
Coal India is the world’s largest coal producer, responsible for over 80 percent of India’s coal production. It plays a vital role in the country’s energy sector, supplying coal to thermal power plants, and the company is government-owned and often focuses on stable dividend payouts. The stock is currently trading at a P/E ratio of Rs. 6.45, which is lower than the industry P/E ratio of Rs. 24.68.
With a market capitalization of Rs. 2,22,073 crores, the stock is currently trading at Rs. 360.15 per share on Tuesday’s session, which is below its 200-day moving average of Rs. 451.07 in a day’s time frame. The stock is currently down by 20 percent from its 200-day moving average.
Bharat Electronics Limited
BEL is a leading defense electronics company in India, manufacturing advanced electronic products for the defense sector. The company plays a crucial role in India’s defense modernization, providing solutions for radar, communication, and weapon systems. The stock is currently trading at a P/E ratio of Rs. 37.69, which is lower than the industry P/E ratio of Rs. 87.25.
With a market capitalization of Rs. 1,88,153 crores, the stock is currently trading at Rs. 262.95 per share on Tuesday’s session, which is below its 200-day moving average of Rs. 290.74 in a day’s time frame. The stock is currently down by 9.5 percent from its 200-day moving average.
Indian Railway Catering & Tourism Corporation Ltd
IRCTC is a subsidiary of Indian Railways, responsible for managing online ticketing, catering, and tourism services. The company has expanded into various sectors, including packaged tours and luxury train services, and is known for its strong presence in the e-commerce space for travel and tourism. The stock is currently trading at a P/E ratio of Rs. 43.84, which is lower than the industry P/E ratio of Rs. 81.66.
With a market capitalization of Rs. 54,084 crores, the stock is currently trading at Rs. 673.65 per share on Tuesday’s session, which is below its 200-day moving average of Rs. 882.96 in a day’s time frame. The stock is currently down by 23 percent from its 200-day moving average.
Hindustan Aeronautics Limited
HAL is a state-owned aerospace and defense company specializing in the design, manufacture, and maintenance of aircraft, helicopters, and related systems. It supports both military and civilian aviation sectors, with a significant role in India’s defense and space programs. The stock is currently trading at a P/E ratio of Rs. 24.52, which is lower than the industry P/E ratio of Rs. 78.28.
With a market capitalization of Rs. 2,13,138 crores, the stock is currently trading at Rs. 3306.45 per share on Tuesday’s session, which is below its 200-day moving average of Rs. 4,469.96 in a day’s time frame. The stock is currently down by 26 percent from its 200-day moving average.
Written by Sridhar
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