Public Sector Undertaking (PSU) stocks, including power sector giants IREDA, PFC, and REC, have faced a significant decline amid a broad market sell-off. These power stocks have corrected sharply from their respective highs, with the BSE Power Index also witnessing a substantial dip.
Performance Overview of Top PSU Power Stocks
- IREDA:
- Current Price: ₹201.15 (-7% on Friday).
- Correction: 35% from its peak of ₹310 (July 15, 2024).
- IPO Success: Despite the sell-off, IREDA shares remain up over 500% from its IPO price of ₹32 launched in November 2024.
- Analyst View: Jatin Gedia, Technical Research Analyst at Mirae Asset Sharekhan, suggests that the short-term trend for IREDA remains negative. The stock may fall further to ₹180, with a recommendation to exit.
- PFC (Power Finance Corporation):
- Current Price: ₹404.20 (-4.21% on Friday).
- Correction: 30% from its peak of ₹580 (July 12, 2024).
- Annual Performance: The stock has remained flat over the last year, reflecting investor caution.
- Analyst View: Analysts recommend either exiting or holding for the long term, depending on risk appetite.
- REC (Rural Electrification Corporation):
- Current Price: ₹459.65 (-6.50% on Friday).
- Correction: 29% from its peak of ₹654 (July 12, 2024).
- Annual Performance: REC shares have delivered a 9% return over the past year, showcasing relatively moderate performance amidst the sell-off.
Market Trends and Broader Impact
- The BSE Power Index has dropped 27% from its peak, highlighting the widespread impact of the recent market sell-off.
- Short-term trends for PSU power stocks are largely negative, attributed to profit booking and weaker investor sentiment in the sector.
IPO Success Stories Amidst Decline
Despite the sharp corrections, IREDA’s IPO success stands out, with the stock still delivering over 500% gains from its initial listing price. This contrasts with the flat or modest returns seen in PFC and REC shares over the same period.