It's like a tale of two halves in football - May 2014 (when the government came to power) to (mid) June 2020 - the market cap of the universe of PSU stocks crashed from about 27 Lak Cr to 13 Lak Cr. (The First Half) @CNBCTV18Live @ShereenBhan @PMOIndia @nsitharaman

Between June 2020 and Jan 29, 2021, as markets worldwide rallied dramatically, the market cap of this universe of PSU stocks moved up from 13 Lak Cr to about 17 Lak Cr(eve of the Union Budget) - this period was like the Half Time change-over. Index broadly mirrored the move.

Now come to the early days of the (to be glorious) second half! The unveiling of the government resolve to drive value from the PSUs / divestment / land sale / buy-backs et al! In the 18 calendar days since the Budget, market cap has moved from 17 to 21 Lak Cr - a staggering 25%!

And, these are the early days of what I see as a seminal change in PSU valuations - should turn out to be the outperformer sector, by a country mile! Companies in this space are largely unlevered / can take on Capex/ can pay out high dividends / can monetise non core assets

Are industry leaders in capacity / are doing buy-backs / are demerging land and other businesses to the benefit of shareholders/ are underowned / are underowned (note the emphasis) by most institutions / have had industry captains who transition to the pvt sector post retirement

The cocktail is ready - it needs to be imbibed and savored. The spread in the buffet is eye popping! Traditional aversion has kept ownership at non-existent levels. All that is poised for change. Manufacturing thrust in a Capex-hungry India and a "China plus one" world

Are the added tailwinds - divestment momentum will feed off itself. Here's to the glory days of the PSU space! The second half has just begun!
@nsitharaman @PMOIndia @CNBCTV18Live @ShereenBhan @latha_venkatesh @_anujsinghal

Data courtesy Kirti Doshi @ Antique Broking