Time to look into PSUs

 

In the last many months we have seen lot of criticisms on PSU companies and the government actions. Given the fact there is not a problem with the inherent value in lot of PSUs the issue is more with the governments inaction and bad policies.

 

If at all government would start functioning or come out with reforms in PSUs we may actually see some of them outperforming markets in a big way.

 

HPCL,BPCL, ONGC, SJVN, NHPC, NTPC are some names which look interesting. Have been avoiding PSUs for many years now but just get a gut feel for the next couple of years.

 

Would like comments from the readers on this. For now have no long bias apart from HPCL and BPCL which i like.

 

Happy Investing,

 

Nooresh

13 Comments

  1. Nitin Karwa
    July 16, 2012

    Like NMDC as a stock in PSU> It benefits hugely from the US $ depreciation considering its exporting a good chunk of its production. Relatively insulated business.

    Reply
    1. Nooresh
      July 17, 2012

      Yes NMDC and also GMDC look very good

      Reply
  2. meghraj mane
    July 16, 2012

    WHY NOT DAILY MOVING PSUS LIKE
    STC HINDCOPPER HMT ITI

    Reply
    1. Nooresh
      July 17, 2012

      Well those are purely gambles 🙂

      Reply
  3. Gandhe srinivas
    July 16, 2012

    Sir

    Have 3 lots of HPCL @352

    Please suggest

    Reply
    1. Nooresh
      July 17, 2012

      Stoploss hit as a trader exit

      Reply
  4. Manjunath A Kopparada
    July 16, 2012

    Very good contra view. After seeing your blog I checked all the stocks quoted by you and found ONGC making cup and handle for target of 350-360 yet to breakout 295 with volume. As for as BPCL and HPCL are concerned they are already on uptrend.

    NTPC may face lot of resistance at 164 around 200 DEMA.

    NHPC has got better pattern and also looks good risk reward. We can buy this around 18 with SL at 17 for target of 20 and 24.

    Thanks for guiding us with out of the box thinking.

    Reply
    1. Nooresh
      July 17, 2012

      Yes watching a lot of PSU for a little longer term view.

      Reply
  5. Sandeep
    July 16, 2012

    Hi Nooresh,

    I am holding RIL @ 950 from quite a long time(approx 25% loss), but can’t see any upside. Please suggest what should I do. Book losses and enter into any PSU stocks?
    I am holding NTPC @175.

    Regards,
    Sandeep

    Reply
    1. Nooresh
      July 17, 2012

      Will suggest you to average at 680-720 and exit on rise.

      Reply
  6. rajamani
    July 17, 2012

    power grid is my choice

    Reply
  7. george
    July 22, 2012

    What about ioc and mrpl?How come these are missing on that list?

    Reply
    1. Nooresh
      July 23, 2012

      Not tracking them closely.Looking into chennai petro.

      Reply

Leave a Reply

Your email address will not be published. Required fields are marked *


This site uses Akismet to reduce spam. Learn how your comment data is processed.