PSU stocks frenzy: Madhu Kela comfortable in buying PSU banks, but wary of ‘unsustainable valuations’ in THESE firms
Read RBI Monetary Policy LIVE Updates hereHe is of the view that it was not a case of a basket buying or selling entirely PSU stocks, noting that some PSU Finance companies have become more expensive than HDFC Bank and Axis Bank.However, the veteran investor believes some of the PSU banks are still trading at comfortable levels and there may be buying opportunities for the long term. According to Kela, the balance sheets of state-run lenders have improved significantly.
A lot of PSU banks are at 18-20% ROE and some are still trading at 1x book value. Also Read: Stocks to buy or sell: Sumeet Bagadia recommends five breakout stocks todayKela said he was more “comfortable in buying PSU banks".PSU stocks are in focus recently after the Lok Sabha election results 2024, wherein the ruling Narendra Modi’s Bharatiya Janata Party (BJP) failed to achieve a majority on its own in the lower house of the parliament.
PSU stocks took a massive beating for two days amid profit booking by investors on concerns over policy continuity.However, with the BJP-led National Democratic Alliance (NDA) supporting the government, PSU stocks bounced back on Thursday.Catch Stock Market Live Updates hereDisclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before making any investment decisions.Milestone Alert!
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