PSU Shares on low gains, Railway and PSB stocks to focus on revenue growth

Shares of railway PSU stocks like Rail Vikas Nigam Ltd. and Ircon International Ltd. are witnessing a bout of profit booking. These stocks are down by 7% and 6%, respectively, on Friday, November 8. RVNL's net profit for the second quarter fell by 27% from last year's to Rs 287 crore. Ircon International Ltd reported an 18% decline in net profit to Rs 206 crore, compared to Rs 250.7 crore in the corresponding period last year.

Additionally, Shares of Public Sector Banks are also in still mode, with SBI, Bank of India, Canara Bank, PNB, and Bank of Baroda, in sluggish mode for a couple of weeks.

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As per the analysts, railways stocks continue to be under pressure on the back of lower-than-expected earnings in Q2. "Despite growing order books status companies are not able to deliver sustainable earning growth which is a matter of concern to investors. This has led to sell-off in the sector stocks as valuations are not matching the earnings growth," he said.

Other Public sector units like NHPC Ltd, Sail Ltd, and Oil India have been witnessing prolonged stock pressure while struggling down the trail. The second quarter's financial results have been noted to disappoint the investors' credibility and approach.

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