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
Public Sector Undertaking (PSU) stocks delivered a mixed but mildly positive performance this week. While some counters witnessed corrections, the overall momentum—especially in PSU banks and select industrial names—remained neutral to slightly bullish. Going forward, investors should remain selective, focusing on strong fundamentals and technical accumulation zones.
🔹 Top PSU Stocks to Watch
- Bharat Petroleum Corporation Limited (BPCL)
Q1 FY26 Highlights:
Sales: ₹1,29,614 Cr (YoY↑1.18%, QoQ↑2.13%)
Operating Profit: ₹9,677 Cr (YoY↑72%, QoQ↑25.09%)
Net Profit: ₹5,680 Cr (YoY↑130%, QoQ↑40.81%)
Valuations:
PE Ratio: 8.04 (sector PE 8.24 – fairly valued)
Dividend Yield: 3.13% (attractive for long-term)
ROE: 16.39% (strong)
Trading Setup:
Trading above 200-DMA, showing medium-term strength.
Strong support at ₹305–₹315; resistance near ₹335–₹360.
📌 Strategy:
Buy Range: ₹305–₹315
Target: ₹335–₹360
Stop Loss: ₹300
Holding Period: 4–7 weeks
View: A good mid-term accumulation play with 5–12% upside potential.
- Hindustan Petroleum Corporation Ltd. (HINDPETRO)
Q1 FY26 Highlights:
Sales: ₹1,20,192 Cr (YoY↓0.64%, QoQ↑1.45%)
Operating Profit: ₹7,571 Cr (YoY↑259%, QoQ↑30.66%)
Net Profit: ₹4,222 Cr (YoY↑1617%, QoQ↑37.68%)
Valuations:
PE Ratio: 8.24 (sector average)
Dividend Yield: 2.69%
ROE: 13.17%
Trading Setup:
Price consolidating between ₹365–₹400 accumulation band.
Remains above key moving averages, signaling bullish undertone.
📌 Strategy:
Buy Range: ₹365–₹400
Target: ₹425–₹470
Stop Loss: ₹340
Holding Period: 4–7 weeks
View: Strong accumulation zone with 8–18% potential upside.
- Engineers India Limited (EIL)
Q1 FY25 Highlights:
Sales: ₹870 Cr (YoY↑39.5%, QoQ↓13.8%)
Net Profit: ₹72.77 Cr (YoY↑23.5%, QoQ↓70%)
Margins: Weak on turnkey projects, stable on consultancy (55% rev share).
Valuations:
PE Ratio: 22.7 (sector inline)
PB Ratio: 4.09 (slightly rich)
ROE: 19.7%
Dividend Yield: 1.54%
Trading Setup:
Strong support at ₹160–₹165 (near 200-DMA).
Resistance at ₹205–₹210; breakout above may push to ₹240.
📌 Strategy:
Buy Range: ₹160–₹170 (prefer dips)
Target: ₹205–₹240
Stop Loss: ₹148
Holding Period: 6–12 months
View: A consolidation candidate; best suited for buy-on-dips investors with mid-term horizon.
📝 Takeaway
The upcoming weeks are likely to bring consolidation with selective breakouts. Investors should:
Stick to accumulation zones.
Honor stop-loss levels strictly.
Differentiate between short-term momentum plays and long-term structural buys.
Disciplined positioning in fundamentally strong PSU counters like BPCL, HPCL, and EIL can help investors ride steady returns despite market volatility.
Disclaimer: This analysis is for educational purposes only. Please consult your financial advisor before investing.
