REC, PFC, IRFC zoom over 200% in FY24. Time to exit PSU stocks?

A K Prabhakar, head of research at IDBI Capital, too remains selective and suggests investors exit power sector stocks such as REC and PFC where the run up has been sharp

Hope of higher capital expenditure ahead of state and general elections has proved to be a boon for stocks of public sector enterprises (PSEs) thus far in fiscal 2023-24 (FY24). The S&P BSE PSU index has surged nearly 51 per cent during this period, shows ACE Equity data, as compared to 17 per cent rise in the S&P BSE Sensex.

A large number of these PSU stocks, suggests G Chokkalingam, managing director for research at Equinomics Research, are from the small-cap segment that has seen a good run in the last few months. The rally, he said, has made valuations