1 / 8PSU stocks are rebounding after having corrected between 25% to even 50% from their record high levels that they had hit in the months of July and August this year. The Nifty PSE Index has gained in three out of the last four trading sessions, during which it has surged over 5%. Most of the stocks in the PSU index are currently presenting healthy potential upsides from current levels. The stocks taken into consideration for this piece have a coverage of at least 10 analysts currently.
2 / 8REC | The state-run power financier has the highest upside potential currently within stocks on the Nifty PSE index. Consensus projects a potential upside of 30% from current levels for REC. All 10 analysts who have coverage on the stock have a “buy” recommendation. Last week, Bernstein wrote in a note that the correction seen in shares of both REC and PFC provides an enhanced buying opportunity. DAM Capital has the highest target on REC at ₹755.
3 / 8Coal India | India’s largest mining company currently provides an upside potential of 29%, according to consensus estimates. Morgan Stanley initiated coverage on the stock on Wednesday, with a price target of ₹525, saying that high power demand outlook will support Coal India’s volumes and earnings going forward. The brokerage also said that the recent correction in the stock price is an attractive buying opportunity as valuations are reasonable. Coal India shares had corrected nearly 25% from their peak.
4 / 8Oil India | The state-run oil explorer has corrected 35% from its recent highs of ₹767 and currently offer an upside potential of 27% from Tuesday’s closing levels. Out of the 20 analysts that have coverage on the stock, 16 of them have a “buy” rating, one says “hold”, and the other three have a “sell” rating.
5 / 8ONGC | Another upstream oil major also features in this list of state-run companies with a healthy potential upside. Based on consensus estimates, ONGC shares currently offer a potential upside of 26% from current levels. Nomura wrote in its note earlier this month that it anticipates net crude oil realisations to remain range-bound at $75 per barrel and gas realisations to increase, benefitting from a rising share of gas volumes. Out of the 29 analysts that cover ONGC, 19 of them have a “buy” rating, four say “hold”, while six of them have a “sell” recommendation. The stock has corrected 27% from its recent peak.
6 / 8NTPC | The stock has been in focus due to the successful listing of its subsidiary NTPC Green Energy on Wednesday. The stock has also corrected from its recent highs of ₹448. Jefferies maintained its “buy” rating on NTPC Green’s parent company with a price target of ₹500. Consensus is currently projecting a potential upside of 22% from current levels. Out of the 25 analysts that have coverage on the stock, 20 of them have a “buy” rating, two say “hold”, while three of them have a “sell” rating on the stock.
7 / 8GAIL | Shares of GAIL are now below levels of ₹200, having corrected from their recent peak of ₹246. Post this correction, consensus is projecting a potential upside of 22% from current levels for GAIL. Out of the 37 analysts that have coverage on the stock, 25 of them have a “buy” rating on the stock, while six analysts each have a “hold” and “sell” rating.
8 / 8Indian Oil Corporation | India’s largest oil refiner saw its shares correct from levels of ₹196, to levels below ₹150. The consensus now projects a potential upside of 21% from current levels. Out of the 34 analysts that have coverage on Indian Oil, 15 of them have a “buy” rating, eight say “hold”, while 11 have a “sell” rating.
