Should you continue to hold PSUs or book profit now? Deven Choksey answers

economictimes.indiatimes.com:

Deven Choksey, MD, KRChoksey Holdings Pvt. Ltd, says “somewhere in 2024, at the end of the first quarter or in the beginning of the second quarter, I would like to book profits into some of these companies which are rallying faster compared to their earnings that could be the opportunity at that point of time. As of now, it makes sense to stay invested into these companies, given the kind of swing that we are experiencing in the business condition that these companies are at this point of time.”

What do you make of the possible turnaround stories like Indiabulls Housing? They have already repaid over Rs 2,200 crore as of last week. They have cleared all $3 billion of ECBs as well. They are not just looking at a name change, but they have also applied to the regulator to become an NBFC. Do you think this is a case that one could look at?
Honestly, the kind of restructuring moves that they have taken are suggesting that they are in for some serious business turnaround. However, how much impact it will bring in the near to long term, is not very clear at this point of time. Maybe furthermore, deep research into the subject will be required before we can comment on this issue.

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What should one do? There is this great rally – I am not using the word frenzy – in PSUs. The temptation to not sell is there because you may miss out on the absolute gains. But if you do not book now, how is the risk-reward ratio stacked up for PSUs in general and railways and defence specifically?
Undoubt