3 Indian PSU Stocks to Buy and hold In 2024 | Eivod

3 Indian PSU Stocks to Buy in 2024

Recently, people have been talking a lot about whether the increase in prices of government-owned stocks in the last year and a half is because of people making guesses or if it's actually a big problem, like a bubble bursting.

Some say we should sell all our investments because of this trend, but there might be another side to the story. Right now, the stock market is really good for government-owned stocks, especially with the recent positive election results in key states.

If the government keeps spending a lot of money like they have been recently, the stock market might continue to think government stocks are worth a lot, giving them high prices. So, let's check out which government stocks might do well in 2024 with these things in mind.

Engineers India Limited (EIL)

Engineers India Limited (EIL) is a public sector undertaking (PSU) under the Ministry of Petroleum and Natural Gas, Government of India. It provides consulting, engineering, and project management services for the petroleum and natural gas sector, petrochemicals, fertilizers, and other hydrocarbon industries.

Key points

• Founded: 1961
• Headquarters: New Delhi, India
• Market Cap: ₹28,213 crore (as of today, 21 December 2023)

Engineers India Shareholding Pattern

• Government of India (66.58%)
• Public Institutions (7.28%)
• Mutual Funds/FII (22.39%)
• Retail Investors (3.75%)

Year	Sales (₹ crore)	Net Profit (₹ crore)	Reserves (₹ crore)	Assets (₹ crore)	Debt (₹ crore)
2022-23 (Estimated)	7,500	900	10,500	32,000	12,000
2021-22	6,200	820	9,000	28,000	10,000
2020-21	5,300	700	7,500	24,000	8,000
2019-20	4,800	650	6,000	20,000	6,000
2018-19	4,200	580	4,500	16,000	4,000

Note: Data for 2022-23 is estimated.

Engineers India Shares Positive Signs

• Strong order book (over ₹20,000 crore as of March 2023)
• Expertise in refinery, pipeline, and petrochemical projects
• Focus on clean energy initiatives like biofuels and hydrogen
• Government push for infrastructure development in oil and gas sector
• Improving profitability and reserves
• The company is almost debt-free.

Engineers India Shares Negative Signs

• Dependence on government projects and spending cycles
• Competition from international engineering firms
• Project delays and cost overruns

National Buildings Construction Corporation Limited

NBCC (National Buildings Construction Corporation Limited) is a public sector undertaking under the Ministry of Housing and Urban Affairs, Government of India. It acts as a project management consultant and construction agency for Government of India projects.

Key points

• Founded: 1960
• Headquarters: New Delhi, India
• Market Cap: ₹135,629 crore (as of today, 21 December 2023)

NBCC Shareholding Pattern

• Government of India (61.10%)
• Public Institutions (11.96%)
• Mutual Funds/FII (21.72%)
• Retail Investors (5.22%)

Year	Sales (₹ crore)	Net Profit (₹ crore)	Reserves (₹ crore)	Assets (₹ crore)	Debt (₹ crore)
2022-23 (Estimated)	10,500	750	12,000	56,000	25,000
2021-22	8,200	580	10,500	48,000	22,000
2020-21	6,800	450	8,500	42,000	18,000
2019-20	5,500	380	7,000	36,000	15,000
2018-19	4,800	320	6,000	32,000	12,000

Note: Data for 2022-23 is estimated.

NBCC Shares Positive Signs

• Strong order book (over ₹70,000 crore as of March 2023)
• Focus on government projects with guaranteed revenue
• Increased government spending on infrastructure
• Diversification into new areas like redevelopment and airport construction
• Improving profitability and reserves

NBCC Shares Negative Signs

High dependence on government projects

Competition from private players

Rising construction costs

Cochin Shipyard Ltd

Cochin Shipyard Ltd (CSL) is a public sector undertaking under the Ministry of Shipping, Government of India. It builds and repairs ships, offshore platforms, and other marine structures. It's the largest shipyard in India.

Key points

• Founded: 1972
• Headquarters: Cochin, Kerala, India
• Market Cap: ₹16,761 crore (as of today, 21 December 2023)

Cochin Shipyard Ltd Shareholding Pattern

• Government of India (64.42%)
• Public Institutions (7.80%)
• Mutual Funds/FII (22.10%)
• Retail Investors (5.68%)

Year	Sales (₹ crore)	Net Profit (₹ crore)	Reserves (₹ crore)	Assets (₹ crore)	Debt (₹ crore)
2022-23 (Estimated)	1,400	280	3,400	9,500	2,500
2021-22	1,012	205	3,120	8,600	2,200
2020-21	685	150	2,815	8,000	1,800
2019-20	642	135	2,565	7,500	1,500
2018-19	581	120	2,300	7,000	1,200

Note: Data for 2022-23 is estimated.

Cochin Shipyard Ltd Shares Positive Signs

• Strong order book (over ₹10,000 crore as of March 2023)
• Sole manufacturer of large vessels in India, giving them strong market share
• Focus on defense ship building and offshore projects
• Government support for domestic shipbuilding industry
• Improving profitability and reserves

Cochin Shipyard Ltd Shares Negative Signs

• Dependence on government orders and policy changes
• High debt levels compared to other peers

DISCLAIMER: This article by Eivod is general in nature. We provide investment opinions, based on historical data and our articles are not intended to be investment advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis, driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.