Year Ender 2024: How PSU Stocks Performed?

Public Sector Undertaking (PSU) stocks had an eventful journey in 2024, marked by highs, lows, and a strong recovery. The BSE PSU Index touched its peak in August, only to face a sharp correction of 20% by November, as profit booking took hold. However, mirroring the resilience of the broader market indices, the PSU index staged a recovery. By year-end, the index not only bounced back but also registered a significant 31.5% annual gain, outpacing the Sensex, which rose by 13.11%.

Top PSU Stocks in 2024

Out of the 56 stocks in the BSE PSU Index, an impressive 51 stocks delivered positive returns in 2024. Among these, 3 stocks stood out with stellar triple-digit returns:

Note: The stocks above are picked as of December 06, 2024 

• Rail Vikas Nigam Ltd (RVNL)

RVNL has an illustrious legacy spanning more than 2 decades. It started with the objective of bridging the infrastructure gap in Indian Railways by fast-track execution of Railway projects. After successfully achieving this objective by completing more than 150 Railway projects, and successfully executing new Railway projects under the innovative PPP model by setting up a number of Special Purpose Vehicles (SPVs), RVNL today has migrated from its original mandate of ‘rail infra’ projects to the ever- expanding opportunities of All Infra. 

• Cochin Shipyard Ltd (CSL)

CSL was incorporated in March 1972 in Cochin, Kerala. The Government of India holds a 72.86% stake in the company, which is listed on the Bombay Stock Exchange and the National Stock Exchange. The company was conferred with Schedule ‘A’, Category-I Miniratna status by the Ministry of Port, Shipping and Waterways. The company is engaged in shipbuilding and ship repair for both the domestic and international markets.

• Mazagon Dock Shipbuilders Ltd (MDL)

MDL is among India’s leading shipbuilding yards, having evolved from a single-unit, small ship repair company to a multi-unit and multi-product company. It was incorporated as a private limited company in 1934. After its takeover by the government in 1960, MDL grew rapidly to become the premier war-shipbuilding yard in India.

More Winners: Stocks with Over 50% Returns

A total of 11 stocks from the index delivered gains exceeding 50% in 2024, showcasing the strength of the PSU segment across diverse sectors.

Performance as of December 6, 2024. 

The Bigger Picture

The exceptional performance of PSU stocks in 2024 can be attributed to a combination of favourable government policies, robust financial results, and sectoral tailwinds. Several PSUs demonstrated remarkable operational efficiencies, drawing investor confidence.

Despite periods of volatility, the BSE PSU Index proved to be a reliable wealth generator, outperforming the frontline index and delivering impressive returns for its investors.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.