Public Sector Undertakings (PSUs), integral to India’s economic core, have played a crucial role in building the nation’s industrial foundation. Owned predominantly by the Government of India, these entities have exhibited robust performance, with some notable standouts in the stock market.
Some of them have given multibagger returns in 2023. Have you added any of them in your portflio? Check and let us know.
3 Multibagger Stocks that Delivered 200%+ Returns in 2023
Three stocks are as follows:
1. REC Limited
REC Limited, a Central Public Sector Undertaking under the Ministry of Power, is a financial force in the power sector, spanning from generation to distribution.
- Friday’s closing share price: Rs 407.20 (up from Rs 394.60)
- Market capitalization: Rs 1,07,000 Crores
Financial Highlights:
- Net revenues increased by 17% from Q2FY23 to Q2FY24 (Rs 9,955 crores to Rs 11,688 crores).
- Net profit surged by 38%, reaching Rs 3,789 crores.
Performance Metrics:
- Share price soared by 238% in the past year and 173% in the last six months.
- Return on equity: 20%
- Return on capital employed: 9%
- Dividend yield: 3.19%
- Net profit margin: 28%
2. Power Finance Corporation
Power Finance Corporation Limited, a Systemically Important Non-Deposit NBFC, registered as an Infrastructure Finance Company, contributes significantly to the Indian power sector.
- Friday’s closing share price: Rs 385.75 (up from Rs 371.10)
- Market capitalization: Rs 1,27,446 Crores
Financial Highlights:
- Net revenues surged by 15% from Q2FY23 to Q2FY24 (Rs 19,336 crore to Rs 22,391 crore).
- Net profit rose by 26%, reaching Rs 6,628 crore.
Performance Metrics:
- Share price escalated by 142% in six months and 222% in the last year.
- Low price-to-earnings ratio: 7
- Return on equity: 27%
- Return on capital employed: 9%
- Dividend yield: 8.7%
- Net profit margin: 27%
3. Rail Vikas Nigam Ltd
Rail Vikas Nigam Ltd, established in 2003 by the Government of India, undertakes various rail infrastructure projects assigned by the Ministry of Railways.
- Friday’s closing share price: Rs 171.20 (down from Rs 170.10)
- Market capitalization: Rs 35,716 Crores
Financial Highlights:
- Net revenues edged up by 0.11% from Q2FY23 to Q2FY24 (Rs 4,908 crores to Rs 4,914 crores).
- Net profit increased by 22%, reaching Rs 370 crores.
Performance Metrics:
- Share price rose by 36% in six months and 149% year to date.
- Low price-to-earnings ratio: 24
- Return on equity: 20%
- Return on capital employed: 17%
- Dividend yield: 3.1%
- Low debt-to-equity ratio: 0.88
Which one of these is there in your Portfolio or Watchlist, Let us know in the comments section below.
