PSU stocks (government companies) are making a comeback due to government efforts. These efforts include better infrastructure, higher government spending and better governance. This has benefited many PSU companies, whose share price has gone up by 500% to 950%.

Multibagger PSU Stocks: Invest anywhere but you always want to get good returns. Such a strong return has been given by the shares of some government companies. These are called PSU shares (PSU). The BSE PSU index has gone up quite sharply. In just one year, this index has increased by almost 100%. The reason for this is the rapid increase in the share price of some PSU companies. According to a report, the shares of three PSU companies have given tremendous profits in two years. If you had invested Rs 1 lakh in these companies, it would have increased to close to Rs 10 lakh today.

Mazagon Dock Shipbuilders shares rise the most

Among these companies, the highest rise has come in the share of Mazagon Dock Shipbuilders. The share price has risen from Rs 234.85 to Rs 3,968.25 as of June 2024. This is an increase of 1,590%. Cochin Shipyard and Rail Vikas Nigam Limited (RVNL) also gave returns of over 1,000%. In simple words, you can say that if you had invested one lakh rupees in the shares of these companies two years ago, today you would have 10 lakh rupees.

Due to

government efforts, PSU stocks (government companies) are making a comeback. These efforts include better infrastructure, higher government spending and better governance. This has benefited many PSU companies, whose share price has gone up by 500% to 950%. For instance, shares of companies such as Fertilizers and Chemicals Travancore, Indian Railway Finance Corporation, Housing & Urban Development Corporation have also gained significantly. Overall, the BSE Sensex has risen 50% in the recent past, while the market share of PSU companies has reached 17.5% now from 10.5% in the financial year 2022.

Motilal Oswal Financial Services believes that the profits of government companies (PSUs) are going to increase in the coming time. They claim that such as strong order book and high raw material prices. Also, the government is emphasizing on making things in India and indigenization in the defense sector, which will benefit industrial PSU companies and their earnings and market value will increase further.