With nearly a week left for the first vote to be cast for the 18th Lok Sabha, an ETMarkets analysis shows that five PSU stocks delivered 5-15 times returns in the last 10 years of the Modi government.
Bharat Electronics Limited (BEL) tops the chart, with nearly 16 times returns followed by ITI with 15.5 times returns. Others include NBCC (India), SJVN and Hindustan Petroleum Corporation (HPCL) with 7.9 times, 5.8 times and 5.1 times returns, respectively.
In percentage terms, BEL’s returns stand at a whopping 1,488% followed by ITI at 1449%. For NBCC, SJVN, and HPCL the returns are between 689% and 410%.
The data analysed is between April 9, 2024, and May 16, 2014 — the counting day and when it was known that the Bharatiya Janata Party (BJP)-led NDA will form the government.
There are 17 stocks which have given less than 5 times returns in the same period but remain multibaggers. These stocks include NHPC, Hindustan Copper, Power Grid Corporation, REC, National Aluminium Company (NALCO), Power Finance Corporation, Mangalore Refinery and Petrochemicals, Indian Bank, Rashtriya Chemicals and Fertilizers, NTPC, Bharat Petroleum Corporation, State Bank of India (SBI), Indian Oil Corporation (IOC), NLC India, Container Corporation Of India (CONCOR), GAIL (India) and Oil India having rallied between 318.49% and 123.62%.
There are six stocks which have given between 93% and 60% returns viz. Steel Authority Of India (SAIL), MMTC, Canara Bank, Engineers India (EIL), Bharat Heavy Electricals (BHEL) and Bank of Maharashtra.
Bank Of Baroda (BOB), NMDC, Coal India, Punjab & Sind Bank (PSB), Oil & Natural Gas Corporation (ONGC), and Central Bank Of India (CBI) have given returns between 42% and 2% in this period. However, one should know that the returns by them over the last one year has been strong with many turning multibaggers. NMDC (112%), Coal India (104%), PSB (157%) and CBI (160%) have not just outsmarted the Nifty but their respective sectoral indices as well.
ONGC (71%) and BOB (58%) have also not done bad in the past 1 year.
Among the misses in the past 10 years include IOB, Union Bank, PNB, UCO Bank and BOI who have seen their prices erode on a net basis between 2.80% and 49.41%. However, these stocks have seen a stellar rally in the last 12 months – IOB (185.65%), Union Bank (121.86%), PNB (188.04%), UCO Bank (120.43%) and BOI (87.30%).
Since Modi’s occupation of the high office, India’s heartbeat index S&P BSE Sensex has crossed the 75,000 milestone from levels of 25,000 10 years ago. This translates into a return of three times on the index itself. Meanwhile, the market capitalisation of all BSE-listed stocks on that day 10 years ago was just Rs 81 lakh crore and has now jumped multi-fold to an all-time peak of Rs 400 lakh crore, making India the fifth largest stock market in the world.
Inputs from Ritesh Presswala
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
