Huge jump in PSU shares: Investors rush to buy PSU stocks.

Huge jump in PSU shares: Investors rush to buy PSU stocks.
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What is PSU?

The  State-owned corporations or corporations in India are identified as public enterprises.  Government initiates PSUs below its signature and well-known to raise out commercial operations.

Statements about PSU :

Prime Minister Narendra Modi told Parliament on Thursday that investors can safely bet on state-owned companies that are being ridiculed by others.  As a result of which PSU shares saw an increase of up to 14% on Friday, in which the ‘government’ bank was at the forefront.

Kranti Bathini, Equity Strategy, Wealth Mills Securities, said, “It was a strong comment from the PM himself in the Parliament where he reposed faith in the PSUs. This is perhaps the first time that a PM has assured investors that the PSUs are performing well.”  The ones are.”  ,

   Finance Minister Nirmala Sitharaman also said in Parliament on Thursday that PSU banks are now able to function with professional integrity and without political interference.

Returns Records of PSU:

Nifty PSU Bank Index and a barometer of the performance of Public Sector Banks, has given over 60% returns in the last 12 months, while Nifty Bank has given just over 15% returns. The strong quarter-on-quarter performance of public sector lenders i.e. Public Sector Banks has led to a rally in the stocks.  The average net profit of PSU banks has jumped 107% year-on-year in the first quarter of the financial year 2023-24.In terms of returns, PNB leads the way with a 370% year-on-year growth in profit after tax (PAT) in the first quarter of the quarter under review.After this, SBI has been in second place.  The largest public sector lender reported a 150% growth in PAT in the last quarter.

Top 5 PSUs that can give you returns above 60 to 300%.

Punjab National Bank:

Current performance of stock:

The closing price of Punjab National Bank stock on Friday was ₹ 62.55, which is ₹ 1.30 higher than the previous closing price of the stock, i.e. an increase of 2.12%.

Financial performance of the company:

Punjab National Bank generated a total revenue of ₹ 29,033.11 cr in the first quarter of the financial year 2023-24, which has seen a growth of 3.32% in total income.  The net profit has been 4.62%, which means the net profit has been approximately ₹ 1,341.

PNB stock with highest return:

The stock has given a return of 90.41% in last 3 years, while Nifty 100 has given a return of 71.04%.The stock has given 90.41% returns as compared to Nifty Bank while Nifty Bank has given 104.93% returns to the investors over a period of 3 years.

PNB stock return calculator:

1 years return rate: 87.28%

Stock current price: ₹62.55

Quantity of stocks: 5000

Total Amount of the stocks: 62.55*5000=₹3,12,750

Profit : ₹3,12,750*87.28%=₹2,72,968

Total Income:₹3,12,750+₹2,72,968=₹5,85,718

State Bank of India:

Current performance of stock:

Stock closing price of State Bank of India on Friday is ₹ 574.15, which is ₹ 0.50 higher than the previous closing price of the stock, i.e. an increase of 0.09% in the stock.

Financial performance of the company:

State Bank of India has generated a total income of ₹ 132332.78 crore in the first quarter of the financial year 2023-24.  PAT, which we call profit after tax has increased by 2.45%.  The net profit of State Bank of India has been 14.01% i.e. net profit of ₹ 18,536.8 crore.

SBI stock with highest return:

SBI stock has given a return of 194.1% in 3 years, while Nifty 100 has given a return of 71.04%.The stock has generated 194.1% returns in the last three years while Nifty Bank has given 104.93% returns to its investors over a period of 3 years.

SBI stock return calculator:

3 years return rate: 194.41%

Stock current price: ₹574.15

Quantity of stocks: 1000

Total Amount of the stocks: 574.15*1000=₹ 574,150

Profit : 574,150*194.41%=₹11,16,148

Total Income:₹574,150+₹11,16,148=₹16,90,298

IDBI Bank Ltd.:

Current performance of stock:

IDBI Bank Ltd. Stock closing price on Friday is ₹64.40 which is ₹0.65 higher than the previous closing price of the stock i.e. an increase of 1.12% to the stock.

Financial performance of the company:

IDBI Bank Limited has generated a total income of ₹ 7,770.91 crore in the first quarter of the financial year 2023-24.  Which has increased by 8.94% in total income.  PAT, which we call profit after tax, has increased by 1.02%.  The net profit of IDBI Bank Ltd. Has been 15.82% i.e. net profit of ₹ 1229.3 crore.

IDBI Bank Limited stock with highest return:

IDBI Bank Limited stock has given a return of 61.81% in 3 years, while Nifty 100 has given a return of 71.04%.The stock has generated 61.81% returns in the last three years while Nifty Bank has given 104.93% returns to its investors over a period of 3 years.

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IDBI Bank Limited stock return calculator:

3 years return rate: 61.81%

Stock current price: ₹64.40

Quantity of stocks: 5000

Total Amount of the stocks: 64.40*5000=₹3,22,000

Profit : 3,22,000*61.81%=₹ 1,99,028

Total Income: ₹ 3,22,000+₹1,99,028=₹521,028

Bank of Baroda:

Current performance of stock:

Stock closing price of Bank of Baroda on Friday is ₹ 192.65 which is ₹ 0.75 higher than the previous closing price of the stock, i.e. an increase of 0.39% in the stock.

Financial performance of the company:

Bank of Baroda has generated a total income of ₹33,318.13crore in the first quarter of the financial year 2023-24.  Which has increased by 2.43% in total income. The net profit of Bank of Baroda  has been 13.46% i.e. net profit of ₹ 4,483.2crore.

Bank of Baroda stock with highest return:

Bank of Baroda stock has given a return of 307.43% in 3 years, while Nifty 100 has given a return of 71.04%.The stock has generated 307.43% returns in the last three years while Nifty Bank has given 104.93% returns to its investors over a period of 3 years.

IDBI Bank Limited stock return calculator:

3 years return rate: 307.43%

Stock current price: ₹192.65

Quantity of stocks: 2000

Total Amount of the stocks: 192.65*2000=₹385,300

Profit :385,300*307.43%=₹ 11,84,528

Total Income: ₹385,300+₹11,84,528=₹15,69,828

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Bank of Maharashtra:

Current performance of stock:

The closing price of Bank of Maharashtra stock on Friday was ₹37.65, which is ₹ 1.05 higher than the previous closing price of the stock, i.e. an increase of 2.87%.

Financial performance of the company:

Bank of Maharashtra generated a total revenue of ₹5,417.8 cr in the first quarter of the financial year 2023-24, which has seen a growth of 1.90% in total income. PAT, which we call profit after tax, has increased by 5.13%. The net profit of Bank of Maharashtra Has been 16.31% i.e. net profit of ₹883.7 crore.

Bank of Maharashtra stock with highest return:

Bank of Maharashtra stock has given a return of 206.28% in last 3 years, while Nifty Midcap 100 has given a return of 133.17%.The stock generated 206.28% return, while Nifty Bank has given 104.93% return to the investors over a period of 3 years.

Bank of Maharashtra stock return calculator:

3 years return rate: 206.28%

Stock current price: ₹37.65

Quantity of stocks: 10,000

Total Amount of the stocks: 37.65*10000=₹376,500

Profit : 376,500*206.28%=₹ 7,76,644

Total Income: ₹3,76,500+₹7,76,644 =₹11,53,144

FAQs

Why did PSU stocks experience a jump in their shares?

The increase in PSU stock shares was attributed to statements from Prime Minister Narendra Modi and Finance Minister Nirmala Sitharaman, expressing confidence in the performance of PSUs. This reassurance from top officials boosted investor sentiment.

Can you provide examples of PSUs with high returns?

Sure, some PSUs that have shown strong returns include Punjab National Bank (87.28% in 1 year), State Bank of India (194.1% in 3 years), IDBI Bank Ltd. (61.81% in 3 years), Bank of Baroda (307.43% in 3 years), and Bank of Maharashtra (206.28% in 3 years).

Which PSU stocks had the highest returns over the past 3 years?

Among the mentioned stocks, Bank of Baroda saw the highest return of 307.43% over the past 3 years.

What were some significant financial indicators of PSU banks’ performance?

In the first quarter of the financial year 2023-24, the average net profit of PSU banks increased by 107% year-on-year. This strong performance led to a rally in PSU stocks.

How have PSU banks performed compared to private sector banks recently?

The Nifty PSU Bank Index, which measures the performance of Public Sector Banks, has given returns of over 60% in the last 12 months. This outperformed the Nifty Bank, which provided just over 15% returns.

How did State Bank of India’s financial performance impact its stock price?

State Bank of India’s financial performance, which included a net profit increase of 14.01%, contributed to a positive investor sentiment and a 194.1% return in its stock over the past 3 years.

What factors contributed to the increase in Punjab National Bank’s stock price?

The stock price of Punjab National Bank increased due to a combination of factors including the reassurance from Prime Minister Narendra Modi, strong financial performance, and positive sentiment towards PSU stocks.

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