Top 10 PSE Stocks: Appropriately dubbed “Saptarishi,” the 2023 Union Budget unveiled seven themes meant to propel India’s progress in the “Amrit Kaal” period (2023-2047). These priorities translated into large budgetary commitments for a variety of sectors, including social welfare, green energy, and infrastructure development. This strategic fiscal strategy turned out to be a game-changer for PSEs, especially those in the housing, energy, and infrastructure sectors. Know if you should Invest or not.
| Sr. Number | Company Name | Budget 2023 to 2024 Returns (Per Cent) | Budget 2023 to 2024 Dividend Yield (Per Cent) | February 1, 2023 Price | January 30, 2024 Price | How much Rs 50,000 investment would worth today (Rs) |
| 1 | Indian Railway Finance Corporation Ltd. | 427.99 | 6.53 | 31.55 | 166.58 | 2,63,993.66 |
| 2 | REC Ltd. | 317.3 | 12.44 | 117.9 | 492 | 2,08,651.40 |
| 3 | Power Finance Corporation Ltd. | 307.73 | 10.67 | 109.08 | 444.75 | 2,03,864.14 |
| 4 | Rail Vikas Nigam Ltd. | 307.64 | 5.6 | 72.65 | 296.15 | 2,03,819.68 |
| 5 | Ircon International Ltd. | 306.85 | 6.29 | 57.7 | 234.75 | 2,03,422.88 |
| 6 | SJVN Ltd. | 286.34 | 6.19 | 33.1 | 127.88 | 1,93,172.21 |
| 7 | Cochin Shipyard Ltd. | 262.61 | 5.7 | 242.05 | 877.7 | 1,81,305.52 |
| 8 | NBCC Ltd. | 255.2 | 1.38 | 35.8 | 127.16 | 1,77,597.77 |
| 9 | Housing and Urban Development Corporation Ltd. | 250.69 | 10.7 | 46.85 | 164.3 | 1,75,346.85 |
| 10 | ITI Ltd. | 237.47 | 0 | 100.35 | 338.65 | 1,68,734.43 |
Budgetary Impact on PSE Performance
The performance of PSE stocks was clearly impacted by the increased budgetary allocations. Among the 56 PSE equities that were evaluated for the BSE PSU Index between February 1, 2023, and January 30, 2024, an astounding 27 of them produced gains greater than 100%, making them multibaggers for investors. The fact that no stock in this pool saw a loss during this time frame attests to the budget’s beneficial effects.
IRFC Dominates with a 428% Surge
With an astounding 428 percent return, Indian Railway Finance Corporation (IRFC) led the field. REC Ltd. (317 percent) and Power Finance Corporation Ltd. (308 percent) followed. The budgetary expenditures that were allotted to these industries’ particular sectors greatly helped these businesses.
Each of these stocks showed notable gains, as the table makes clear, converting a Rs 50,000 investment into considerable wealth. These PSE stocks’ strong performance is evidence of the 2023 budget’s beneficial effects, which are fostering value creation and growth in important industries. In addition to earning financial gains, investors who took advantage of these stocks’ chances helped India’s Public Sector Enterprises become success stories.
Fueling PSE Excellence
The 2023 Budget provided numerous significant allocations that drove these PSEs’ outstanding performance.
- IRFC, IRCON, and RVNL benefited greatly from a hefty Rs 2.4 lakh crore for the railroads, over nine times the FY14 appropriations.
- REC, PFC, and SJVN were bolstered by the allocation of Rs 35,000 crore for programmes such as the National Green Hydrogen Mission and the Green Credit Programme.
- HUDCO and NBCC benefited from around Rs 79,000 crore allotted for the PM Awaas Yojana and Rs 10,000 crore for the urban infrastructure development fund.
- Cochin Shipyard was supported by the defence sector, which received Rs 5.93 lakh crore, with defence production exceeding Rs 1 lakh crore.
- ITI Ltd benefited from the allocation of Rs 1.23 lakh crore for postal and telecom projects, of which Rs 1.53 lakh crore was invested in BSNL and Rs 52,937 crore was set aside for its 4G and 5G services.
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