PSU outperformance over Nifty can continue; investors fear price downtrend

Though there are some inherent downsides, upsides include low valuations, high dividend yield

Devangshu Datta
Last Updated at March 8, 2023 23:23 IST

The last year has seen public sector undertakings (PSUs) outperforming the Nifty50, albeit by a small degree. But PSU valuations are still, on average, less than half of private sector peers at price-to-equity or PE 8.7x for the Nifty PSU Index versus 20.9x for the Nifty50.

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