Portfolio

Market mayhem drags PSU stocks to abysmal levels

BL Research Bureau | Updated on August 23, 2019 Published on August 22, 2019

Keerthi Sanagasetti

The global economic slowdown and taxes on FPIs have dragged the markets into a bearish phase, indicated by the 4 per cent fall seen in Sensex in the last one month. In terms of erosion in value, PSU stocks seem to have taken the worst hit. The BSE PSU index, representing the listed public sector enterprises, has fallen by about 17 per cent in the last one month and by 22 per cent in the last one year.

Of the 60 public sector enterprises trading on the exchange, 10 companies, including Coal India, Oil India, Hudco, Bank of Maharashtra and United Bank are trading near their lifetime lows.

Twenty-three companies are trading below their 2009 levels. Prominent losers among these are MMTC, IOB, BHEL, Hindustan Copper, Bank of India and SAIL, which have fallen more than 60 below their March 2009 levels.

MMTC sinks 99%

MMTC which is now trading at ₹18, had peaked at ₹1,897 in September 2018, and since then the stock has fallen 99 per cent till date. Similarly, BHEL had hit its peak price of ₹390 on September 7, 2018, and is currently trading at ₹48, closer to its pre-2004 levels.

The PSU representatives in the metals space, viz, Hindustan Copper, SAIL and National Aluminium are now trading below their 2004 levels. Of the 18 PSU banks listed, 12 banks are trading below their 2009 levels.

Coal India and Oil India are now trading near their life-time lows. Coal India peaked at ₹447.25 in August 2018, recording an all-time high. From there, the stock has lost 60 per cent value in the last one year.

Among the recent listings, Hindustan Aeronautics, Hudco, NIA, GIC, Cochin Shipyard and Ircon International have now lost their sheen, recording their fresh all-time lows.

Fresh life time lows (in Rs)

CompanyAll time highLifetime lowsCMP
New India Assurance382.43103.15104.4
HUDCO102.3530.2030.35
General Insurance449.50158162.25
Hindustan Aeronautics1184.95603.25650
Cochin Shipyard599333334.75
Ircon International471338350.9
Oil India334.98141.70142.35
Coal India447.25177.75180.85

 

Trading below 2009 levels (in Rs)

CompanyCMPAll time highPrice as on March 31st 2009
MMTC181897.72471.25
BHEL48390.6720141
Hindustan Copper28.80658110.80
SAIL30.0529396.45
SCI25.35221.3376.90
IFCI7121.2019.30
NMDC78.70571.80155.80
NLC India54.25277.9583.90
National Aluminium38141.6153.66
NTPC114.75242.50149.88
ONGC116.95314.67130.03
RCF38.15150.4537.45
MRPL45.9014941
Power Finance Corporation101.70192.5072.30
GMDC60.4531739.55
ITDC155.752217.5599.60
GAIL (India)120.65199.7069.08
BEML735.251947.45381.75
CPCL190.75490.0594.40
Power Grid Corporation202.75226.6095.60

 

 

Published on August 22, 2019
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