Latest news with #Make-in-India
Economic Times
7 days ago
- Business
- Economic Times
Motilal Oswal Picks 5 PSU stocks as top bets; says PSUs no longer underperforming
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Top PSU stock picks PSU recovery story Tired of too many ads? Remove Ads Valuation and outlook In its latest strategy report, domestic brokerage house Motilal Oswal has identified State Bank of India (SBI), Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Power Grid Corporation , and Coal India as its top PSU stock ideas for long-term investors, stating that these are well positioned due to earnings visibility, strategic relevance, and strong Oswal's report notes that PSUs are no longer the underperforming segment they once were, having delivered strong earnings and market cap gains post-COVID. The BSE PSU Index has posted a 32% CAGR over FY20–25, significantly outpacing the 19% CAGR of the Nifty-50 in the same report emphasizes that while FY25 marked a period of moderation after the steep rally in FY24, several tailwinds remain intact.'Despite FY25 moderation, many structural factors remain intact: strong earnings base, policy tailwinds, and improved balance sheets,' it further adds that long-term investors should selectively consider PSUs, 'especially in BFSI, Capital Goods, and Infrastructure, based on earnings visibility and strategic importance.'State Bank of India (SBI): The largest PSU bank with strong return ratios, SBI remains Motilal Oswal's top pick in the BFSI space. The report notes a Return on Equity (RoE) of 18.6% for FY25, backed by healthy margins and credit Aeronautics (HAL): A key beneficiary of the government's Make-in-India push in defense, HAL is expected to deliver strong earnings growth with a 13.6% EPS CAGR over FY25– Electronics (BEL): With increasing defence capex, BEL continues to be a structural play in electronics and defence manufacturing, posting a robust 18.6% EPS CAGR for the projected Grid Corporation: As a core infrastructure utility, Power Grid offers a defensive growth opportunity with steady RoE (projected 18.4% in FY26) and strong visibility on regulated India: Despite being in a cyclical sector, Coal India is favored for its cash flow strength and dividend yield, and is seen trading at attractive valuations with a P/E of just 6.8x for report traces the transformation of PSUs over the past decade. During FY15–20, PSUs lagged the broader market, and the BSE PSU Indexunderperformed with a negative CAGR of 3.8%. However, between FY20–25, PSUs staged a dramatic comeback with earnings growing at 36% CAGR, aided by a turnaround in public sector banks and strong performance in capital goods and infrastructure particular, PSU banks turned profitable, moving from losses in FY20 to posting over Rs 2 trillion in profits in FY25, accounting for 38% of total PSU report also notes a significant reduction in the PSU loss pool: 'The contribution of loss-making companies to the overall profit pool has significantly diminished to just 1% in FY25 from 45% in FY18.'Valuations of PSUs have eased from their peaks. The BSE PSU Index P/E dropped from 13.8x in July 2024 to 11.7x in June 2025, though still above the low of 9.8x in February 2025. The current levels, the brokerage believes, reflect 'continued earnings growth, supported by underlying RoE expansion, strong macroeconomic conditions, a favorable policy environment, a robust order book buildup, and a significant turnaround in governance and operational efficiency.'Looking ahead, Motilal Oswal expects a 10% PAT CAGR over FY25–27 for its PSU coverage universe, which represents about 72% of India's PSU market cap. The growth is expected to be led by BFSI (53% contribution), Oil & Gas (20%) and Metals (12%).
Time of India
7 days ago
- Business
- Time of India
Motilal Oswal Picks 5 PSU stocks as top bets; says PSUs no longer underperforming
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Top PSU stock picks PSU recovery story Tired of too many ads? Remove Ads Valuation and outlook In its latest strategy report, domestic brokerage house Motilal Oswal has identified State Bank of India (SBI), Hindustan Aeronautics (HAL), Bharat Electronics (BEL), Power Grid Corporation , and Coal India as its top PSU stock ideas for long-term investors, stating that these are well positioned due to earnings visibility, strategic relevance, and strong Oswal's report notes that PSUs are no longer the underperforming segment they once were, having delivered strong earnings and market cap gains post-COVID. The BSE PSU Index has posted a 32% CAGR over FY20–25, significantly outpacing the 19% CAGR of the Nifty-50 in the same report emphasizes that while FY25 marked a period of moderation after the steep rally in FY24, several tailwinds remain intact.'Despite FY25 moderation, many structural factors remain intact: strong earnings base, policy tailwinds, and improved balance sheets,' it further adds that long-term investors should selectively consider PSUs, 'especially in BFSI, Capital Goods, and Infrastructure, based on earnings visibility and strategic importance.'State Bank of India (SBI): The largest PSU bank with strong return ratios, SBI remains Motilal Oswal's top pick in the BFSI space. The report notes a Return on Equity (RoE) of 18.6% for FY25, backed by healthy margins and credit Aeronautics (HAL): A key beneficiary of the government's Make-in-India push in defense, HAL is expected to deliver strong earnings growth with a 13.6% EPS CAGR over FY25– Electronics (BEL): With increasing defence capex, BEL continues to be a structural play in electronics and defence manufacturing, posting a robust 18.6% EPS CAGR for the projected Grid Corporation: As a core infrastructure utility, Power Grid offers a defensive growth opportunity with steady RoE (projected 18.4% in FY26) and strong visibility on regulated India: Despite being in a cyclical sector, Coal India is favored for its cash flow strength and dividend yield, and is seen trading at attractive valuations with a P/E of just 6.8x for report traces the transformation of PSUs over the past decade. During FY15–20, PSUs lagged the broader market, and the BSE PSU Indexunderperformed with a negative CAGR of 3.8%. However, between FY20–25, PSUs staged a dramatic comeback with earnings growing at 36% CAGR, aided by a turnaround in public sector banks and strong performance in capital goods and infrastructure particular, PSU banks turned profitable, moving from losses in FY20 to posting over Rs 2 trillion in profits in FY25, accounting for 38% of total PSU report also notes a significant reduction in the PSU loss pool: 'The contribution of loss-making companies to the overall profit pool has significantly diminished to just 1% in FY25 from 45% in FY18.'Valuations of PSUs have eased from their peaks. The BSE PSU Index P/E dropped from 13.8x in July 2024 to 11.7x in June 2025, though still above the low of 9.8x in February 2025. The current levels, the brokerage believes, reflect 'continued earnings growth, supported by underlying RoE expansion, strong macroeconomic conditions, a favorable policy environment, a robust order book buildup, and a significant turnaround in governance and operational efficiency.'Looking ahead, Motilal Oswal expects a 10% PAT CAGR over FY25–27 for its PSU coverage universe, which represents about 72% of India's PSU market cap. The growth is expected to be led by BFSI (53% contribution), Oil & Gas (20%) and Metals (12%).
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Business Standard
7 days ago
- Business
- Business Standard
SBI to HAL: These PSUs merit long-term portfolio spot, says Motilal Oswal
SBI, BEL, HAL, Power Grid, and Coal India are among the top stock picks for Motilal Oswal Sai Aravindh Mumbai India's public sector undertakings (PSUs) deserve a place in long-term investor portfolios, as strong demand tailwinds persist while valuations have cooled off from their peak, according to Motilal Oswal Financial Services. Indian PSUs have been one of the most remarkable stories of Indian capital markets after Covid-19, the domestic brokerage said in a note on Thursday, adding that several PSU sectors posted a sharp turnaround in profit and created unexpected shareholder value. Listed companies delivered a strong earnings compound annual growth rate (CAGR) of around 30 per cent between financial year 2020 (FY20) and FY25, with PSUs growing even faster at 36 per cent, analysts at Motilal Oswal said. However, PSU earnings growth slowed in FY25 due to a high base from a sharp 43 per cent jump in FY24 and weaker performance in the oil and gas sector. This was also due to lower government capex, weak consumption trends, and volatility caused by geopolitical tensions, the note said. Growth optimism Although some cyclical moderation was seen in FY25, the key building blocks and supportive environment for sustained profitable growth in several PSUs remain intact, Motilal Oswal noted. Analysts expect a rebound amid increased government spending and continued focus on infrastructure and capex, stronger order books, and a favourable monsoon season. Further, the government's focus on localisation and the 'Make-in-India' initiative in the defence sector will continue to drive growth for industrial PSUs, it said. "We expect PSU contributions to earnings and market capitalisation to remain stable or improve going forward. Motilal Oswal estimates a 10 per cent profit after tax (PAT) compound annual growth rate (CAGR) for its PSU coverage universe. This growth will be largely driven by the banking, financial services and insurance (BFSI) and oil and gas (O&G) sectors, based on conservative assumptions from the FY25 base, it said. Sectors such as logistics, capital goods and metals are also expected to support earnings. Valuations cool The market capitalisation of the BSE PSU Index touched a record high of ₹74 trillion in July 2024. It then fell 31 per cent in February 2025 amid a broader market correction, before rebounding 25 per cent in June 2025. The index currently stands 14 per cent below its peak but is up 5 per cent in calendar year 2025 so far. Due to the correction between October 2024 and March 2025, the index's price-to-earnings (P/E) ratio declined to 11.7 times in June 2025 from 13.8 times in July 2024, Motilal Oswal noted. However, it has recovered from the February 2025 low of 9.8 times. So far this year, the BSE PSU index has advanced 2.4 per cent, underperforming the benchmark Sensex, which has risen by 6.4 per cent. Top stock picks State Bank of India (SBI), Bharat Electronics (BEL), Hindustan Aeronautics (HAL), Power Grid Corp., and Coal India are among the top stock picks for the domestic brokerage. Motilal Oswal expects BEL to deliver an 18.6 per cent CAGR in earnings per share (EPS) over FY25–27, while HAL is projected to grow at 13.6 per cent. SBI and Power Grid Corp are both expected to post EPS growth of 9.3 per cent, and Coal India is estimated to grow at 9.8 per cent.
The Hindu
16-06-2025
- Business
- The Hindu
India to export 150 locomotives to Africa worth over ₹3,000 crore
India will supply 150 locomotives worth more than ₹3,000 crore to the African country of Guinea, the Ministry of Railways stated on Monday (June 16, 2025). The Make-in-India locomotives are meant for use at the Simandou iron ore project site in the country, a spokesperson of Indian Railways said. 'The Railway Locomotive factory in Marhowrah, Bihar, will supply 150 Evolution Series ES43ACmi locomotives. Thirty-seven locomotives will be exported in the current financial year, while 82 locomotives will be exported in the next financial year. Another 31 locomotives will be exported in the third year,' the spokesperson said. All these locomotives will have an air-conditioned cab (driver's compartment). 'Each loco will have a single cab, and two locomotives together will carry the load of 100 wagons with maximum permissible speed,' the spokesperson further said. Three types of tracks, broad gauge, standard gauge and cape gauge, have been laid in Marhowrah Locomotive premises for manufacturing these locomotives. 'The project was secured via global competitive bidding,' the spokesperson added. The 4,500-HP locomotives are equipped with alternating current (AC) propulsion, regenerative braking, microprocessor-based controls, and modular architecture. 'These locomotives are built with best-in-class emission standards, fire-detection systems, and ergonomic crew cabins with modern amenities like a refrigerator, microwave, and waterless toilet system,' the spokesperson said. They are also fitted with Distributed Power Wireless Control System, or DPWCS, for synchronised operations and superior freight handling. The Marhowrah Factory of Bihar directly employs 285 people, and a further 1215 people are getting indirect employment, the spokesperson added.
Hans India
15-06-2025
- Business
- Hans India
IAS trainees applaud Sri City's visionary development
Sri City: A team of seven IAS officer trainees from the 2024 batch visited Sri City as part of the AP Darshan programme on Saturday. The young officers were deeply impressed by the city's meticulous planning, world-class infrastructure, and emphasis on sustainable growth. Welcoming the delegation, senior Vice-President (Marketing) R Shivasankar presented a comprehensive overview of Sri City's sustainability-driven growth model. He underscored Sri City's pivotal role in the Make-in-India mission, its contribution to job creation, and its impact on regional development. The officers were visibly impressed, describing Sri City as a 'marvel of planning and execution'. They praised the seamless integration of industry, infrastructure, and liveability that makes it ideal for both businesses and communities. Sri City MD Ravindra Sannareddy expressed delight over the recognition from the visiting team saying that it was a privilege to have their model studied by emerging policymakers.
