Brokerage analyst target for Profit-earning PSU stocks to gain over 30%

New Delhi: CLSA Ltd, a brokerage firm is analyzing to expect two PSU stocks to gain over exceptional future objectives and strategic plans in the welfare being of retail investors. The two Public sector units have gained tremendous stock investing price ratios, hence profiting the exchange customers.

The first one is Power Finance Corporation (PFC) which is a Maharatna company. The PFC is a financial organization that specializes in power sector finance, offering financial support to power projects in India such as power generation, transmission, and distribution. On Wednesday, Power Finance Corporation Ltd. shares closed at Rs 424.15 per share, up 1.56 percent on the National Stock Exchange. The company has a market capitalization of Rs 1.3 lakh crore.

 

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Power Finance Corporation Ltd. shares gained 95% in the last six months and 228% in a year. The company’s revenue has increased by 20 percent yearly, from Rs 19,639 crores in Q3 FY23 to Rs 23,572 crores in Q3 FY24. In the same time frame, net profit has increased by 20 percent from Rs 5,241 crores to Rs 6,294 crores. The net NPA ratio decreased from 1.19% in nine months of FY24 to 0.90% in nine months of FY24, representing a 29 basis point reduction. Additionally, 82% of the company’s loans are designated for the government sector and the remaining 18% are allocated to the private sector. 

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The other one is REC Limited which provides and supports rural electrification projects for state power utilities, private sector project developers, central power sector utilities, and state governments. On Wednesday, REC Ltd. shares closed at Rs 469.65 per share, up 1.01 percent on the National Stock Exchange. REC shares gained 91% in the last six months and 287% in a year. The company has a market capitalization of Rs 1.2 lakh crore. 

The company’s revenue has increased by 23 percent yearly, from Rs 9,782 crore in Q3 FY23 to Rs 12,052 crore in Q3 FY24. In the same time frame, net profit has increased by 13 percent from Rs 2,915 crore to Rs 3,308 crore.

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