After upto 29% dip in 8 Nifty PSE stocks in 2025, experts turn bullish on 2

Stocks to buy for 2026: Analysts believe that valuations are turning attractive for RECL and PFC along with a healthy dividend yield at play.

Shares of public-sector enterprises (PSE) have witnessed a mixed trend in the calendar year 2025. Analysis shows that shares of oil marketing companies like - HPCL, BPCL, IOC, and select defence-related shares like - Bharat Electronics and Bharat Heavy Electricals (BHEL) - gained in the range of 16 - 34 per cent. On the other hand, energy - particularly power sector and rail-related stocks - cracked up to 29 per cent. RECL topped the losers' list with a loss of 28.9 per cent. It is followed by Power Finance Corporation (PFC) - down 22 per cent. That apart, Container Corporation of India, Power Grid Corporation of India, Indian Railway Finance Corporation, Rail Vikas Nigam, Indian Railway Catering and Tourism Corporation (IRCTC), and GAIL (India) shed 11 - 18 per cent each.  Amid this, the Nifty PSE index has managed to hold on to a gain of 1.8 per cent thus far in 2025. In comparison, the NSE Nifty 50 index has surged over 10 per cent.  ALSO READ | Top 10 wealth creators & destroyers of 2025  However, going forward in the year 2026, market experts are bullish on these 2 PSE stocks namely - RECL and PFC - amid attractive valuations at current levels.  Devarsh Vakil, Head of Prime Research at HDFC Securities says that RECL and PFC are on their radar as valuations turn attractive at these counters. The analysts say investors may buy these stocks on dips for a likely 15-20 per cent upside.  On the earnings front, for the quarter ended September 2025 (Q2FY26), RECL reported 1.1 per cent year-on-year (Y-o-Y) dip in consolidated net profit at ₹4,414.93 crore, while the revenue from operations grew by 2.8 per cent Y-o-Y to ₹15,152.67 crore when compared with Q2FY25.  On similar lines, PFC posted a 0.9 per cent dip in consolidated net profit at ₹4,461.94 crore, while revenue from operation increased by 7.1 per cent Y-o-Y to ₹14,755.50 crore.  According to BSE data, RECL's Earning Per Share (EPS) stands at ₹20.29 and the Price to Earnings ratio at 5.40x. Whereas, PFC's EPS and PE ratio stood at ₹17.39 and 20.17x, respectively.  Vinit Bolinjkar, Head of Research at Ventura Securities highlights that RECL and PFC also provide a healthy dividend yield; hence these 2 stocks can be bought from a long-term perspective as well.  RECL rewarded shareholders 5 times in the calendar year 2025 by way of dividend pay-outs, totalling ₹19.7 per share. Similarly, PFC also paid shareholders ₹16.40 per share as dividend in 5 instalments this year. 

RECL, PFC on technical charts:

  RECL  Current Market Price: ₹352.60 

 

 

  On the monthly charts, RECL stock is seen trading sideways since February 2025. The trading range has now narrowed down to ₹330 - ₹380, shows the chart.  PFC  Current Market Price: ₹349.80 

 

  PFC is seen trading at its lowest point since March 2024, shows the above monthly chart.  Disclaimer: The views expressed by the brokerage/ analyst in this article are their own and not those of the website or its management. Business Standard advises users to check with certified experts before taking any investment decisions.