By Aditya Raghunath
Investing.com -- In June, brokerage firm Geojit BNP Paribas (NS:GEOJ) recommended three PSU (public sector unit) stocks that had an upside of over 20% each. Here’s the rationale behind the recommendations and let’s see if they have any juice left in them:
- NTPC Ltd (NS:NTPC)
Target: Rs 140
Current price: Rs 116.65
Possible percentage gain: 20%
Rationale: We remain positive on the stock as NTPC continues to focus on massive capacity addition from the current level in the coming periods. Additionally, a gradual recovery in demand will support the company’s topline.
- Power Grid Corporation of India Ltd (NS:PGRD)
Target: Rs 276
Current price: Rs 230.55
Possible percentage gain: 20%
Rationale: We expect the business to perform well in the short to medium term as the demand from the transmission and telecom business will continue to grow. An increase in the number of projects along with the adoption of the latest technologies by the management should help reduce costs and aid margin expansion.
- GAIL Ltd (NS:GAIL)
Target: Rs 193
Current price: Rs 151.9
Possible percentage gain: 27%
Rationale: Enhanced domestic gas production coupled with a focused approach towards a gas-based economy through prospective commissioning or expanded pipelines to further improve volumes and profits. Additionally, crude’s positive leverage should support prices in the near term.