Jefferies stays bullish on PSU stocks: SBI, Coal India, NTPC lead the way

The recent outperformance (before the sharp fall in past sessions), Jefferies said, was helped by earnings per share (EPS) upgrades and return on equity (RoE) improvement.

Notwithstanding the recent sharp decline in the stocks of public sector companies, analysts at Jefferies remain bullish on this segment.

State Bank of India, Coal India, and NTPC are their top picks in this space, they said in a recent note.

The public sector undertaking (PSU) or state-owned enterprise (SOE) index, with a 70-percentage-point outperformance versus the National Stock Exchange Nifty50 over the past 12 months, comes after a decade of underperformance before 2020.

Jefferies stated that the recent outperformance (before the sharp fall seen in the past few sessions) was aided by earnings per share (EPS) upgrades and return