India’s public sector undertakings (PSUs) have shown robust profit growth, with a 36% CAGR from FY20 to FY25. Motilal Oswal Financial Services Ltd. (MOSL), a leading Indian brokerage and financial services firm headquartered in Maharashtra, highlighted in a June 26, 2025 report that select PSU stocks remain attractive for long-term investors. Top picks include State Bank of India (SBI), Hindustan Aeronautics Ltd. (HAL), Bharat Electronics Ltd. (BEL), PowerGrid Corporation of India, and Coal India.

Motilal Oswal Financial Services Ltd. (MOSL), a prominent brokerage and wealth management firm headquartered in Maharashtra, India, has reaffirmed its bullish outlook on select Indian public sector undertakings (PSUs). The firm released its latest analysis on June 26, spotlighting PSUs as long-term investment opportunities despite a recent market correction.

MOSL noted that Indian PSUs delivered a 36% CAGR in profits between FY20 and FY25, outpacing private-sector growth and significantly contributing to India Inc’s profitability. This resurgence has been led by sectors such as banking, defence, and infrastructure.

The report listed State Bank of India (SBI), Hindustan Aeronautics Ltd. (HAL), Bharat Electronics Ltd. (BEL), PowerGrid Corporation of India, and Coal India as top long-term PSU picks. These entities were chosen based on structural tailwinds, policy support, consistent earnings growth, and improved governance.

In FY25, PSU profits dipped slightly—by 2% YoY—mainly due to a sharp decline in oil and gas sector performance. However, excluding this segment, PSU profits actually rose by 16%, showing continued underlying strength.

Valuation-wise, the BSE PSU Index trades at a P/E of 11.7x, providing room for growth after peaking at 13.8x in July 2024 and dropping to 9.8x in February 2025. The current market cap of ₹64 lakh crore is still 14% below its all-time high.

Between 2015 and 2020, the PSU Index underperformed but rebounded sharply between 2020 and 2025 with a 32% CAGR. The report also noted a decline in loss-making PSUs—from 45% in FY18 to just 1% in FY25—reflecting better operational efficiency.

Looking forward, MOSL estimates a 10% PAT CAGR for PSU stocks from FY25 to FY27, driven primarily by banking and energy sectors. The transformation of Indian PSUs into competitive, transparent, and policy-aligned enterprises continues to attract investor interest.

MOSL emphasized that PSUs have evolved from inefficient bureaucratic units into powerful, profit-generating institutions with a meaningful role in India’s economic growth trajectory.

Read the full article here: Public Sector Renaissance: India’s PSUs Show Long-Term Promise — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).

Ahead of the Union Budget 2025, Motilal Oswal Securities has identified ICICI Bank, Bajaj Finance, and other stocks as top picks based on technical analysis, highlighting their potential for gains despite market volatility.

As India prepares for the highly anticipated Union Budget 2024-25, set to be presented by Finance Minister Nirmala Sitharaman on February 1, 2025, Motilal Oswal Securities Limited (MOSL) has identified five top technical stock picks that may perform well amid current market volatility. With expectations that the Budget will focus on enhancing capital expenditure, manufacturing growth, and maintaining macroeconomic stability, MOSL’s pre-budget analysis is guiding investors toward large-cap stocks with favorable risk-reward ratios.

About Motilal Oswal Securities Limited (MOSL):

Motilal Oswal Securities Limited is one of India’s leading brokerage firms, providing wealth management and financial services. It offers comprehensive solutions, including equity research, technical analysis, and investment advisory services. MOSL is known for its strategic insights and in-depth market analysis to guide investors in navigating market fluctuations.

In its pre-budget technical outlook, MOSL emphasized that the stock market has experienced a sharp correction recently, but the broader long-term uptrend remains intact. The Nifty index is currently testing crucial support levels, making it an ideal time for a basket approach, particularly focusing on large-cap stocks.

Top 5 Technical Stock Picks by MOSL:

1. ICICI Bank
   The private sector bank has found strong support near its 200-day exponential moving average (DEMA) and formed a reversal pattern. ICICI Bank has given a trend line breakout on the daily chart and is showing relative outperformance within the Nifty Private Bank sector.
2. Bajaj Finance
   Despite the market weakness, Bajaj Finance has retained its gains and is approaching a flag breakout above ₹7,500. This could indicate a potential upside, making it one of MOSL’s top picks.
3. SRF
   SRF is poised for a breakout above ₹2,635 levels on the weekly chart, showing signs of bullish momentum with a potential Pole and Pennant pattern on the daily scale.
4. Eicher Motors
   Eicher Motors has successfully retested its breakout level and is now trading above its 50-day exponential moving average (DEMA). With positive momentum indicated by the Relative Strength Index (RSI), the stock is expected to continue its upward trend.
5. UltraTech Cement
   UltraTech Cement has formed a strong support base in the ₹10,500-₹10,700 range and has experienced significant volume upticks, signaling a potential bullish trend.

As investors eagerly await the Budget announcement, MOSL’s insights into these top-performing stocks offer opportunities to capitalize on potential gains. Investors and traders are advised to keep a close eye on how the market reacts to policy announcements and adjust their portfolios accordingly.

Read the full article here: Budget 2025: ICICI Bank, Bajaj Finance Lead Motilal Oswal’s Picks — For more updates, visit Wittiya – Top Business News, Stock Market Insights & Financial Updates (Wittiya).