Accumulate stocks of PSUs that are likely to be disinvested say analysts
Published On: Tuesday, May 4, 2021 | By: Team KnowMyStock
Analysts suggest investors accumulate stocks of PSUs, especially the ones that are likely to be disinvested, at the current levels from a medium-to-long-term perspective. “There are a lot of PSU stocks that have not participated in the market rally. The fall from their peak levels is a good opportunity to buy from a medium-to-long-term horizon. I am confident that the government will be able to achieve the fiscal 2021-22 (FY22) divestment target. Due to the ongoing second wave of Covid, it may dole out some relief measures, which will cost money. To fund such initiatives, it will have to go aggressive on divestment once the market conditions improve,” say experts.
In April, the government said that the timeline for disinvestment of Air India and Bharat Petroleum Corporation (BPCL) may be pushed by two to three months due to the second Covid-19 wave. It, however, is confident of wrapping up the sale of the two companies by FY22 and meeting the disinvestment target of Rs 1.75 trillion during this fiscal.
Besides Air India and BPCL, Shipping Corporation of India (SCI), Container Corporation of India (CONCOR), IDBI Bank, BEML, Pawan Hans, Neelachal Ispat Nigam are some of the other public sector companies that are likely to see government cut its stake in, reports suggest.
The prized catch among the lot, according to analysts, is state-run refiner and marketer BPCL. The stock, they analysts suggest, stands a good rerating chance given its operations and the vast assets, including the land bank, once the company’s divestment process gathers momentum.
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