The government’s decision to revive disinvestment has brought the spotlight back on PSU stocks. Here are seven likely to do well in the short term based on fundamentals and cheap price-toearnings (PE) multiples.
SAIL
WHY: The company has invested Rs 53,000 crore to double its steel making capacity by 2012 and will benefit greatly once the economic recovery leads to higher steel prices.
TRADING AT PE OF: 14
NTPC
WHY: Projects with a total capacity of 17,930 MW are under construction. It has set a capacity addition target of 22,430 MW by 2012.
TRADING AT PE OF: 20
Neyveli Lignite
WHY: This integrated thermal power generator has a generation capacity of 2,490 MW. Capacity addition of 4,000 MW is expected in the next 5 years.
TRADING AT PE OF: 13
ONGC
WHY: A number of capital schemes for enhancement of production of oil and gas from both offshore and onshore assets has been lined up by the company.
TRADING AT PE OF: 17
SCI
WHY: The global economic recovery will lead to an uptick in global trade that augurs well for this shipping firm with a presence in India and abroad.
TRADING AT PE OF: 11
BHEL
WHY: It has a robust order pipeline. Its strong project execution record has ensured impressive earnings growth and a healthy balance sheet.
TRADING AT PE OF: 21
Concor
WHY: An active focus on the domestic market is paying rich dividends for Concor, which provides multi-modal logistics support for India’s exports/imports as also domestic trade and commerce.
TRADING AT PE OF: 12
