PSU Stocks Return: PSU shares gave tremendous returns, these stocks made 1 lakh into 10 lakhs in two years
PSU stocks are making a comeback due to government efforts. These efforts include better infrastructure, more government spending and good governance. Many PSU companies have benefited from this, whose share prices have increased from 500% to 950%.
Multibagger PSU Stocks: Wherever you invest, you always want good returns. The shares of some government companies have given such strong returns. These are called PSU shares. The BSE PSU index has gone up very fast. In just one year, this index has increased by almost 100%.
The reason for this is the rapid increase in the price of shares of some PSU companies. According to a report, the shares of three PSU companies have given tremendous profits in two years. If you had invested Rs 1 lakh in these companies, today it would have increased to around Rs 10 lakh.
Mazagon Dock Shipbuilders' stock gained the most
Among these companies, the stock of Mazagon Dock Shipbuilders has seen the highest growth. The price of these shares has increased from Rs 234.85 to Rs 3,968.25 by June 2024.
In this sense, there is an increase of 1,590%. Cochin Shipyard and Rail Vikas Nigam Limited (RVNL) also gave a return of more than 1,000%. In simple words, it can be said that if you had invested one lakh rupees in the shares of these companies two years ago, then today you would have Rs 10 lakh.
Many PSU companies benefited
PSU stocks are making a comeback due to government efforts. These efforts include better infrastructure, more government spending and good governance.
Many PSU companies have benefited from this, whose share prices have increased from 500% to 950%. For example, the shares of companies like Fertilizers and Chemicals Travancore, Indian Railway Finance Corporation, Housing & Urban Development Corporation have also seen a lot of growth.
Overall, the BSE Sensex has grown by 50% in the recent past, while the market share of PSU companies has now increased from 10.5% to 17.5% in FY 2022.
Motilal Oswal Financial Services believes that the profits of government companies (PSUs) are going to increase in the coming times.
They claim that due to strong order book and high prices of raw materials, the government is also emphasizing on manufacturing things in India and indigenization in the defense sector, which will benefit industrial PSU companies and their earnings and market value will increase further.