Skip to main content

Buyers find PSU stocks attractive on divestment hopes

Our Bureau

Kolkata, June 9 PSU stocks witnessed targeted buying as market expected fresh Government initiative for divestments.

Of the 45 listed PSU stocks, those with negligible or very small public holding evoked increased interest from the market.

"If the Government plans to sell its stake up to 51per cent in the listed PSUs, the total sale proceeds could be over $95 billion, based on the current market prices of listed PSUs. This works out to about 9.48 per cent of the current GDP," according to Mr Jagannadham Thunuguntla, equity head of SMC Capitals.

Mr Saurabh Mukherjee, head of the Indian equity at Noble, said investors have appetite for PSUs, most of which have strong fundamentals and high growth prospects. "But there could be resistance by unions, particularly bank unions, against Government holdings going below 51 per cent. Limited resistance, however, is likely if divestments are restricted to 51 per cent."

There are several PSUs with Government holding above 75 per cent. But those with holding at 90 per cent and above – such as Hindustan Copper (99.59 per cent), MMTC (99.33 per cent), NMDC (98.38 per cent), Neyveli Lignite (93.56 per cent), Rashtriya Chem & Fertilisers (92.50 per cent), State Trading Corporation (91.02 per cent) and Engineers India (90.40 per cent) – are likely to be considered for divestments in the short term.

NMDC, with the highest market capitalisation among the PSU pack, moved up 4.06 per cent on Tuesday. On weekly terms, however, it is still trailing by 4.78 per cent. It clocked a traded quantity of 2.19 lakh shares on the BSE.

MMTC, thinly traded and priciest among the State-owned companies, continued its appreciation spree and gained 10 per cent to close at Rs 37,229.

Hindustan Copper improved 5 per cent with surge in volume (over one lakh on BSE against fortnightly average of 83,190 shares).

REC gained 6.45 per cent with a BSE volume of over 10 lakh shares. Power Finance Corporation was 2.56 per cent with a traded quantity of 2.58 lakh changing hands on BSE.

NTPC closed marginally down, but its traded volume of over 30 shares

note : I had hold 700 shares of idbi&600 shares of sail

Popular posts from this blog

Bio-fuel has top investors powered up

23RD ,JUNE India's fortune-hunters believe their new-found love for biofuel will pay off. India's well-known investors who are known for their Midas touch have spotted an opportunity in bio-fuel, betting big on ethanol, bio-mass and even bio-fuel equipment makers in India and other parts of the globe. Billionaires Rakesh Jhunjhunwala, C Sivasankaran, Vinod Khosla, founder of Sun Microsystems, and Nemish Shah, the media-shy joint partner of Enam Financial Services, are investing in bio-fuel makers quietly, expecting that bio-fuel will have a big play in the coming years as the world looks for a viable alternative to the fast depleting oil reserves. Jhunjhunwala, who is known for his ability to spot a multi-bagger at a very early stage, recently invested in Hyderabad-based bio-fuel firm Nandan Biometrics.He is also a 10 per cent stakeholder in Praj Industries, which is a bio-fuel technology provider…

up to 8,500% return in 5 years! Investors made a killing in these 30 smallcap stocks

U By Rahul Oberoi, | Updated: Dec 01, 2017, 04.06 PM IST Post a Comment
Efficiency pays in the long run. Among the top smallcap plays on Dalal Street, 30 companies with stable return on equity (RoE) and return on capital employed (RoCE) have surged up to 8,500 per cent over the past five years.

All these companies had a debt-to-equity ratio of less than 1 and have been maintaining RoE and RoCE of over 20 per cent since 2012-13.

Avanti Feeds emerged the chart topper, with an 8,527 per cent gain to Rs 2,596.60 as of November 28 from Rs 30.10 ..

ovember 28 from Rs 30.10 on November 27, 2012. The company’s return on equity for FY17, FY16, FY15, FY14 and FY13 stood at 42.65 per cent, 46.21 per cent, 52.41 per cent, 45.79 per cent and 27.60 per cent, respectively. Avanti also managed to achieve a return on capital employed of over 50 per cent in last four years. Its RoCE stood at 28.59 per cent inRoE measures net income earned for every rupee of shareholder funds, while…

5 dark-horse picks

Kwadrat/ Kwadrat/
If you are a conservative investor, using the mutual fund route is the best way to invest in stocks. But if you are game for some excitement, you might want to dabble directly in stocks, especially small-cap stocks. Stocks that are smaller in size, in terms of market capitalisation, carry higher risk. The reasons are — one, lower traded volume increases price volatility, two, information is usually scarce on these companies, three, business risk is higher since many of these companies are dependent on a single product and four, governance risk is also higher in these stocks. That said, small-cap stocks have the capacity to deliver far greater returns when compared to large-cap stocks. Sample this: there were 16 stocks with market cap more than ₹50,000 crore in January 2009. These stocks delivered an average return of 138 per cent in the last eight years but 4 out of every 10 stocks in this group delivered negative returns. On the ot…