What fund managers think of the current PSU rally

Insights from four fund managers on the underlying PSU sector dynamics and trends

- Anil Poste

Public sector undertakings (PSUs) offer investors the opportunity to diversify and manage risk, even as they continue to present potential for capital appreciation. Here is what some fund managers think about the sector and its current rally:

PSU growth story is beyond ownership metrics

Souvik Saha, investment strategist, DSP AMC We firmly advocate assessing companies based on their structural growth trajectory, regardless of their public or private ownership. It's imperative to recognize the significant growth narrative and competitive advantage present in key sectors where PSUs operate. Overcoming historical challenges like government interference, we have observed a notable shift in management objectives and reduced governmental involvement, enabling PSUs to operate more effectively within their respective sectors.

It's crucial to evaluate each company beyond stock prices and profitability metrics, focusing on the structural story contributing to PSU growth...

Embracing more growth in PSUs

Mahesh Patil, CIO, ABSL AMC