- According to American brokerage Morgan Stanley, stocks of Public Units (PSUs) are about 30 per cent undervalued due to a slew of issues. Lack of autonomy and political interference in their functioning have been the biggest bane of PSUs.
Betting on state-run giants such as Coal India, PowerGrid, BPCL, NTPC and ONGC, Morgan Stanley said, “If the Modi government engineers change, as his performance with Gujarat enterprises points to, these stocks could be surprising winners in the coming three to five years”.
The report said that the big turnaround in the performance of Coal India and upstream energy companies is an indication that Modi’s Gujarat model could be repeated with central government-run companies.
According to the report, PSU stocks underperformed the market by 55 per cent over the past decade.