PSU Market Movers and Shakers: Stocks to Watch, Buy, Hold, or Avoid This Week

Each week, PSU stocks carve out their page in the evolving saga of India’s growth and governance transformation. Last week, the PSU segment saw a divergence in performance — with some companies gaining on strong earnings and sectoral momentum, while others faltered amid profit-taking and lack of fresh triggers.

Here’s your weekly guide on which PSU stocks are building strength, which need more time, and which may be better avoided for now.

🔍 Top PSU Stocks to Watch This Week

1. National Thermal Power Corporation (NTPC)

Sector: Power Generation

CMP: ₹334.25

Recommendation: ★ Buy on dips (ideal range: ₹295 – ₹320)

Q1 FY26 Highlights:

Total Revenue: ₹47,065 Cr (↓ 3.02% YoY)

Operating Profit: ₹12,579 Cr (↓ 10.3% YoY)

Net Profit: ₹6,010 Cr (↑ 18.02% YoY)

Valuation Metrics:

PE Ratio: 13.54 (well below sector average of 21.01)

P/B Ratio: 1.76

Dividend Yield: 2.44%

ROE: 12.95%

Technical Outlook:

The stock is trading after a healthy correction and hovering near support levels. RSI and MACD indicators suggest it’s nearing oversold territory, pointing to a potential bounce.

Buy Zone: ₹295 – ₹320

Target Levels: ₹350, ₹380, ₹425, ₹470

Stop Loss: ₹270

Time Horizon: 4 to 8 quarters

Strategy: Accumulate gradually | Not for short-term trades

2. Hindustan Copper Limited

Sector: Non-Ferrous Metal

CMP: ₹243.50

Recommendation: ★★ Watchlist | Accumulate on correction

Valuation Metrics:

PE Ratio: 53.73 (well above sector average of 20.56)

P/B Ratio: 9.39

Dividend Yield: 0.36%

ROE: 12.92%

Technical Outlook:

After a 30% correction from its 52-week high of ₹353, the stock bounced from ₹184, signaling potential bottoming out. However, current valuations remain stretched.

Buy Zone: ₹180 – ₹205 (if correction resumes)

Target Levels: ₹250, ₹280, ₹325, ₹350–₹380

Stop Loss: ₹165

Time Horizon: 1 to 6 quarters

Strategy: Avoid chasing highs | Gradual accumulation only on dips

3. Bharat Heavy Electricals Limited (BHEL)

Sector: Industrial Equipment (Engineering)

CMP: ₹238.45

Recommendation: ★★ Cautious Accumulate on Weakness

Q4 FY25 Highlights:

Revenue: ₹8,993 Cr (↑ 8.88% YoY)

Operating Profit: ₹831 Cr (↑ 14.26% YoY)

Net Profit: ₹504 Cr (↑ 3.89% YoY)

ROE: 2.16%

PE Ratio: 156.85 (far above sector average of 27.99)

Shareholding (June 2025):

Promoters: 63.17% – Stable

FIIs: 6.36% (↓ from 7.19%)

DIIs: 18.45% (↑ from 16.34%)

Retail: 10.29%

Technical Outlook:

BHEL is trading well below its 52-week high of ₹320. It remains in a correction phase but has shown signs of bottoming around ₹210–₹190.

Buy Zone: ₹210 – ₹190

Target Levels: ₹240, ₹265, ₹300

Stop Loss: ₹176

Time Horizon: 2 to 8 quarters

Strategy: Avoid aggressive positions | Suitable for patient investors

4. Oil India Limited (OIL)

Sector: Oil Exploration & Production

CMP: ₹438.20

Recommendation: ★★★ Buy selectively ahead of earnings

Shareholding (June 2025):

Promoters: 56.66% – Stable

FIIs: 8.16% (↓ 0.35% QoQ)

DIIs: 18.41% (↑ 0.10% QoQ)

Retail: 5.23% – Slightly rising

Q1 FY26 Preview (Results due: Aug 12, 2025):

Stable upstream earnings anticipated

Possible dividend announcement likely to act as a trigger

Buy Zone: ₹400 – ₹420

Target Levels: ₹470, ₹520, ₹575, ₹600

Stop Loss: ₹371

Time Horizon: 3 to 7 quarters

Strategy: Buy in 2–3 tranches | Use market dips for cost averaging

📌 Investor Takeaway

These PSU stocks offer divergent risk-reward profiles. NTPC and Oil India appear to offer the best blend of valuation comfort, technical positioning, and medium-term potential. BHEL and Hindustan Copper, though fundamentally decent, are priced at rich valuations and should be approached with caution.

✅ General Advice:

Use staggered buying to manage entry risk

Stick to defined stop losses

Avoid chasing overbought rallies

Watch out for sectoral triggers like results, policy decisions, and global cues

Disclaimer: This analysis is for educational purposes only. Please consult your financial advisor before investing.