Introduction
After a small correction, there are many stocks which have come to good valuations and it is very important to look at the valuation in stock investment and there is such a stock which is higher than its book value and the stock which is higher than the book value, if there is a little fundamental understanding, then it is a very demanding stock if the company is right. I have taken out 5 PSU stocks out of 100 for you, so to take out this data, I have followed 2 criteria which I thought would be best, in this everyone’s point of view can be different, thinking and seeing, so it is not necessary that the stock which is at the right valuation according to me is right according to you, I have taken 2 criteria. First – Fundamental ratio and sub major points like profit loss and holdingS Second – I have taken the stock on the basis of future theme like which sector will the government focus on in the coming time or which sector has the possibility of growth.
1- Power Grid
It is India’s largest electric power transmission company and it distributes 45% of India’s electricity. Now let’s look at its valuation. It has parameters that tell the valuation. And on the basis of both the parameters, what is the company’s under value, while if you look at the OPM%, then from 2021 till now, the OPM of the company is roughly above 85%, which can be considered a good sign.
2 - HEL
It manufactures aircraft, maintains them and provides related services. Here, if we go by its base price, the industry value is 67 and the stock price is 37 and the PG ratio is 1.54, which means the P/E is cheap. The PE ratio is a bit expensive because it is above the van and being above the van means it is considered a bit expensive. Whereas, if you look at the OPM percentage, the OPM percentage is being maintained at above 23%-24% on a quarterly basis. 3 – REC – You finance top power and solar projects and the company has also raised Rs 1.2 lakh crore to finance the PM Suryodaya Yojana project. Its journey started in 1969. Its aim was to set up power infrastructure in rural areas. In the year 1998, MBFC was registered with RBI. In 2017, REC became the first PSU company to issue green bonds on the London Stock Exchange. So, it has achieved a lot of milestones and when RACs also come, the industry is of P16.2 and the stock is of P9.13 and the third is 0.45. That means, if you go by the PG ratio and PI, then definitely the stock is cheap. Whereas, if you look at the OPM, then again, after 100, the OPM is 100% maintained all around, which is their previous OPM.
3 - REC
You finance top power and solar projects and the company has also raised Rs 1.2 lakh crore to fund the PM Suryodaya Yojana project. Its journey started in 1969. Its aim was to set up power infrastructure in rural areas. MBFC was registered with RBI in 1998. In 2017, REC became the first PSU company to issue green bonds on the London Stock Exchange. So, it has achieved many milestones. And when we look at REC, the industry is at P16.2 and the stock is at P9.13 and the third is 0.45. So, if you go by the PG ratio and PI, then definitely the stock is cheap. At the same time, if you look at OPM, then again, after 100, OPM is maintained at 100% all around, which is their previous OPM. 4 – Bank of India – If we talk about region wise, then the company has more than 5000 branches and more than 6000 ATMs in India. Apart from this, there are 23.5 lakh branches in the country. The company’s outturn in the country is quite good here, but it is important to see their P, then the industry P is 9.75 and the stock P is 9.97 and if we see the P ratio, then it is 0.47, that means both are standing in the right way and I see it absolutely correct, which is called valuation and Bank of India is trading above its book value, do not forget this at all, this is a very important point which I wanted to tell you people because their book value is around 147 and their current price is 141 and if any company is above its book value, then if the company is working in a good way, then in the coming time everything is working in the right way. There is a lot of possibility of growth in it.
4 - Bank of India
If we talk about region wise, then the company has more than 5000 branches and more than 6000 ATMs in India. Apart from this, there are 23.5 lakh branches and the company’s outgo in the country. So here the PER bank is quite good, but it is important to see their PER, then the industry PER is 9.75 and the stock PER is 9.97 and if we see the PG ratio, then it is 0.47, that means both are standing in the right way and I see it absolutely correct, which is called valuation and Bank of India is trading above its book value, do not forget this at all, this is a very important point which I wanted to tell you people because their book value is around 147 and their current price is 141 and if any company is above its book value, then if the company is working in a good way, then in the coming time everything is working in the right way. There is a lot of possibility of growth in it.
5 - ONGC
It is India’s largest crude oil and natural gas company, India’s total domestic production is about 71%, that comes from MGC, so we see that the industry P is 16.8, stock P is 7.46 and PG ratio is 0.64, that is, if we look at both the levels, then definitely the entry value is increasing and this is an important factor for which there is a pay because in reality, the return that you people have also seen in the PSU stock has been received only now, in the last 2 years, there was no return in the PSU stock and now you have started getting that return, so you can understand from ISI that these stocks were very cheap, which are now trying to move up, here if we talk about Power Grid, the break out level of Power Grid is above 300, there if we talk about the other stock Hale, which is the break out of the double top