Interested in Sarkari Jobs, Did You Check Out Sarkari Stocks? Cochin Shipyard, Coal India To IRFC, IRCON

In India, government jobs popularly known as 'Sarkari jobs' are like dream jobs for citizens as they come with a haven of retirement, pensions and many other benefits. But while many seek sarkari jobs, the sarkari (PSU) stocks are already reaping benefits for investors. Prime Minister Narendra Modi once made a light-hearted comment last year. He said along the lines, "Here's a guru mantra for those who follow the stock markets. Place your bets in those PSUs...Your Money Will Surely Grow." He was confident in his statement of PSU stocks and was applauded with a fit of merriness on the remarks.

Who would have known back then that PM Modi was absolutely right? Those who knew and took the advice have bagged multi-fold returns.

When Sensex and Nifty crashed at the start of this week, PSU and CPSE indexes touched their all-time highs.

PSUs and CPSEs did not defy the market bears just yesterday, it has rather been a huge contributing factor to lifting the Sensex and Nifty to their lifetime highs. Back-to-back new highs in the past few weeks have become a common phenomenon in PSU stocks.

At times, it felt like PSU stocks were popping out of their wagons, hitting sky-high price levels and giving double-to-triple-digit returns. As the saying goes, 'Paisa, Paise Ko Kheechta Hai' (money attracts money), PSU stocks are one beacon of example for this, creating massive wealth on investment of investors.

For instance, on January 24, when Sensex and Nifty traded cautiously with a slight upside, BSE PSU and CPSE indexes gained between 2-2.5%. On the previous day, when Sensex and Nifty crashed by over 1.5% each, BSE PSU and BSE CPSE indexes touched their all-time highs of 16,993.95 and 3,331.8 respectively.

In a year, the BSE PSU index has climbed by a whopping 60.4% and the BSE CPSE index even higher by 79%. Also, Nifty CPSE has gained by over 74% as of now in a year.

Also, there are more than a dozen PSU stocks that have crossed Rs 1 lakh crore market cap due to their record-high performances. Currently, India's largest insurer LIC India is the largest PSU stock with a m-cap of Rs 5.54 lakh crore followed by SBI which has a m-cap of Rs 5.4 lakh crore. Meanwhile, NTPC and ONGC hold third and fourth rank with valuations of Rs 2.93 lakh crore and Rs 2.89 lakh crore respectively. Coal India is the fifth largest PSU with a capitalisation of Rs 2.31 lakh crore.

Other PSU stocks are Power Grid and IRFC with over Rs 2.2 lakh crore and Rs 2.11 lakh crore valuation. Further, Indian Oil Corporation, Hindustan Aeronautics, Bharat Electronics, Power Finance Corporation, Bank of Baroda, REC, Punjab National Bank, Union Bank of India, GAIL and BPCL have a market cap between Rs 1 lakh crore to Rs 2 lakh crore.

Talking about PSU stocks' robust performance, Manish Chowdhury, Head of Research, at StoxBox said, "The proactive and positive government initiatives have restored investor confidence in PSU stocks which was evidenced in their stock performance over the last one year."

Additionally, Chowdhury said, that a higher focus on operational efficiencies, improved execution capabilities, and a distinct move towards professional management have instilled a sense of assurance amongst market participants.

He added, "With strong earnings visibility, attractive valuation and steady dividend payouts, we still expect PSUs to perform strongly going ahead.

The top 5 performing CPSE stocks on BSE are:

1. Indian Railway Financial Corporation:

IRFC is the titan-performing stock in CPSE. The stock skyrocketed by over 406% in a year, also entering the large-cap space from midcap with a market cap crossing Rs 2 lakh crore. The stock's 52-week high and low is at Rs 192.8 and Rs 25.4 apiece.

The company was set up in December 1986 to mobilize funds from domestic and overseas markets to meet the predominant portion of the Extra Budgetary Resources requirement of Indian Railways.

2. Ircon International:

This stock has zoomed by over 287% in a year. The stock has a 52-week high of Rs 280.9 apiece, while its 1-year low is at Rs 50.1.

IRCON is the leading turnkey construction company backed by the Railways Ministry. IRCON not only operates in highly competitive environments but also in difficult terrains and regions of the country.

3. Rail Vikas Nigam (RVNL):

RVNL's share price has jumped by nearly 284% on BSE in a year. Its 52-week high of Rs 345.5 apiece which was clocked recently, while its 52-week low is at Rs 56.1 apiece.

Rail Vikas implements projects relating to the creation and augmentation of the capacity of rail infrastructure on a fast-track basis and the raising of extra-budgetary resources for SPV projects.

4. Power Finance Corporation (PFC):

This CPSE in the NBFC sector has climbed by 241% in a year. The stock's 52-week high and low are at Rs 430.3 and Rs 106.4 apiece respectively.

PFC plays a crucial role in the rise of India as a global player. Increasingly, a country's development is gauged by measuring its energy usage. With a large fraction of our nation still, unfortunately, without any access to electricity, PFC will become an increasingly important factor in the years to come.

5. Cochin Shipyard:

Cochin's share price has rallied by over 231% in a year. The stock has hit a new 52-week high and low of Rs 898.5 apiece and Rs 205.2 apiece respectively.

Cochin Shipyard was incorporated in the year 1972 as a fully owned Govt of India company. In the last three decades, the company has emerged as a forerunner in the Indian Shipbuilding & Ship repair industry. This yard can build and repair the largest vessels in India.

Disclaimer: The write-up highlights the stocks and its performance, and are not a recommendation to buy, sell or hold. We have not done fundamental or technical analysis and have no opinion on the stock mentioned. Neither, the author nor Greynium Information Technologies should be held liable for any losses. Please consult a professional advisor.