PSU Stocks Returns: PSU stocks hit Rs 10 lakh in 2 years

Due to government efforts, PSU stocks (government companies) are making a comeback. These efforts include better infrastructure, higher government spending and better governance. This has benefited many PSU companies, whose share price has increased by 500% to 950%.

Multibagger PSU Stocks: Invest anywhere, but you always want to get better. Shares of some government companies have given such a strong return. These are called PSU shares. The BSE PSU index has gone up quite sharply. In just one year, this index has increased by almost 100%. This is due to the sharp increase in the share price of some PSU companies. According to a report, 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 close to Rs 10 lakh.

Mazagon Dock Shipbuilders shares rise the most

Fullscreen

The biggest gain among these companies has come in the shares of Mazagon Dock Shipbuilders. The price of these shares has increased from Rs 234.85 to Rs 3,968.25 as of June 2024. This is an increase of 1,590%. The Cochin Shipyard and Rail Vikas Nigam Limited (RVNL) also delivered returns of over 1,000%. In simple words, if you had invested one lakh rupees in the shares of these companies two years ago, today you would have Rs 10 lakh.

government efforts, PSU stocks (government companies) are returning. These efforts include better infrastructure, higher government spending and better governance. This has benefited many PSU companies, whose share price has increased by 500% to 950%. For instance, shares of companies such as Fertilisers and Chemicals Travancore, Indian Railway Finance Corporation, Housing & Urban Development Corporation have also rallied significantly. Overall, while the BSE Sensex has risen 50% in the recent past, the market share of PSU companies has risen from 10.5% in FY 2022 to 17.5% now.

Motilal Oswal Financial Services believes that the profits of government companies (PSUs) are going to increase in the coming times. They claim that such as strong order book and high prices of raw materials. At the same time, the government is emphasizing on making things in India and indigenization in the defense sector, which will benefit industrial PSU companies and further increase their earnings and market value.