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Will PSUs be Modi-fied?

The disinvestment of PSUs isn't being talked about anymore, with the possibility of them becoming profitable

When we worked on our January 2014 special issue on PSUs, we recommended 26 of them after analysing them threadbare. Mind you, six months ago, the election fever had not picked up as yet and there was no way to predict the election verdict going the way it has. The 26 stocks we covered have gone to another level and have touched their respective 52 week high with the exception of power companies.

What changed the course was the rhetoric with which Narendra Modi spoke during his election campaign on how he turned around the fortunes of loss making state electricity board in Gujarat and other state government companies. So convincing was his speech that the street saw merit in the possibility of efficient management of these family jewels. All talks of disinvestment has taken a back seat and what we are staring now is the possibility of PSUs getting into shape and becoming profitable. While only time will tell if their fortunes turnaround; in the current rally, the PSU stocks have done a lot better than the Sensex.

Company NameIndustryMarketPrice (₹)Price (₹)ReturnDividend
cap (₹cr)01/01/201416/05/2014(%) yield (%)
HPCLRefineries14708239.5404.568.91.96
NBCCConstruction - Real Estate3574154.9261.168.61.26
BPCLRefineries41588349.6551.657.81.91
IOCRefineries87163208.4326.456.71.73
Engineers IndiaEngineering9426166.8260.956.52.14
PFCFinance Term Lending38915166.3257.754.92.37
Container CorporationLogistics23185724.31077.448.80.98
BELElectronics - Components116671019.91422.139.41.53
ONGCOil Exploration356251288.138533.63.02
RECFinance Term Lending32640219.1290.632.72.5
BHELElectric Equipment65657175.4229.430.82.02
Neyveli LignitePower Generation/Distribution1471463.376.120.33.19
Power Grid CorporationPower Generation/Distribution6408799.3119.420.22.24
NALCOAluminium & Aluminium Products1262838.145.419.32.55
GAILGas Transmission/Marketing54595343.2409.419.32.23
Coal IndiaMining & Minerals246117291.9345.718.43.59
Oil IndiaOil Exploration36300484.8563.216.24.97
Hindustan CopperMetal - Non Ferrous 873971.881.813.91.06
NMDCMining & Minerals67103143.2161.712.94.14
RCFFertilizers25633640.512.73.23
GMDCMining & Minerals4495118.2133.212.62.12
MOILMining & Minerals4996239.3266.411.31.85
Balmer LawrieDiversified1094320.5351.79.74.59
SJVNPower Generation/Distribution1005221.122.67.13.95
NHPCPower Generation/Distribution2579519.620.54.62.58
NTPCPower Generation/Distribution119972138131.9-4.53.95