PSU Market Movers and Shakers: Stocks to Watch, Buy, Hold, or Avoid This Week
By V.L.A. Ambala, SEBI-Registered Research Analyst | Co-founder, Stock Market Today
Last week, Indian PSU stocks witnessed a mixed performance. PSU banks saw some pressure, while IT and FMCG counters also trended downward. As we move into a new trading week, attention turns to some of the better-positioned public sector undertakings (PSUs) that continue to draw investor interest.
Based on technical indicators and recent fundamentals, here are the key PSU stocks to Buy, Hold, or Avoid this week:
🔍 Top PSU Stocks to Watch
- Power Finance Corporation (PFC)
Sector: Financial Services (NBFC – Power Lending)
CMP: ₹422.20
Recommendation: ✅ Buy / Hold
Q4 FY25 Performance Highlights:
Total Revenue: ₹29,265 Cr (↑ 21.22% YoY)
Operating Profit: ₹27,133 Cr (↑ 9.72% YoY)
Net Profit: ₹6,316 Cr (↑ 10.61% YoY)
ROE: 19.54%
Dividend Yield: 4.37%
PE Ratio: 5.96 (well below sector average of 19.53)
Technical Outlook:
PFC is exhibiting strong bullish signals. The stock is trading close to its breakout levels with firm support around ₹400. Traders and short- to mid-term investors may consider accumulating the stock in the ₹400–₹424 range.
Target Levels: ₹435, ₹465, ₹550
Stop Loss: ₹380
Time Horizon: 2 to 8 weeks
- GAIL (India) Ltd.
Sector: Industrial Gases & Fuels (Natural Gas Infrastructure)
CMP: ₹183.50 (Approx.)
Recommendation: ✅ Buy / Watch
Q4 FY25 Performance Highlights:
Revenue: ₹36,551 Cr (↑ 11.3% YoY)
Net Profit: ₹2,491 Cr (↑ 8% YoY despite 39.7% QoQ decline)
Operating Profit: ₹3,535 Cr (↑ 11.5% QoQ)
ROE: 12.86%
Dividend Yield: 3.49%
PE Ratio: 9.71 (below sector average of 14.68)
Technical Outlook:
Bullish crossover on 5-day and 20-day SMAs suggests a positive near-term trend. Backed by favorable government policy and strong gas infrastructure demand, the stock is poised for upward movement.
Buy Zone: ₹181–₹187
Target Levels: ₹194, ₹210
Stop Loss: ₹176
- Indian Oil Corporation (IOC)
Sector: Oil Refining & Marketing
CMP: ₹151.22
Recommendation: ✅ Buy / Hold
Q4 FY25 Performance Highlights:
Sales: ₹2,21,360 Cr (Flat YoY)
Operating Profit: ₹15,029 Cr (↑ 98.47% QoQ)
Net Profit: ↑ 54% YoY
ROE: 22.75%
Dividend Yield: 1.97%
PE Ratio: 15.79 (in line with sector average)
P/B Ratio: 1.15
Technical Outlook:
IOC is hovering around a strong support zone and is showing early signs of a trend reversal. Given the strong ROE and earnings momentum, the stock is likely to move higher in the near term.
Buy Zone: ₹142–₹149
Target Levels: ₹160, ₹178, ₹195
Stop Loss: ₹136
💡 Investment Takeaway
These government-backed companies benefit from strong fundamentals, consistent dividends, and attractive valuations. They remain resilient amid market volatility and offer stable income with potential for capital appreciation. However, investors should align their trades with risk appetite, investment horizon, and broader market cues.
Disclaimer: This analysis is for educational purposes only. Please consult your financial advisor before investing.
