 "PSU Stocks, Public Sector Undertaking")
Public Sector Undertaking (PSU) funds have run up by 93.6 per cent on average over the past year. Experts say investors need to tread with caution after this humongous run-up.
Improved fundamentals
In the past three years, business cycles improved in many of the sectors where PSUs have a presence. “As market leaders or dominant entities in them, PSUs benefited directly from the improvements in the fundamentals of those sectors,” says Anand Sharma, fund manager, ICICI Prudential Asset Management Company (AMC).
Financials, too, have taken a turn for the better. “Return on equity (RoE) of PSUs had dipped from 14-15
