Should You Invest in PSUs Stocks? Value Trap or Value Buy? | Do PSU's Create Wealth in long term

[@omsingla5432]

I started investing in psu companies 1.5 years ago and have realised that literally they are the value trap.. No matter how much beaten down the valuations are, there will still be more frauds and more money siphon offs and they will fall further and the valuations will become more cheap and will trap more retail investors

[@Jyyo]

Don’t buy them in bull phase, a SAIL was available at 20 rs -30 rs, during fall. Enjoy the dividend money

[@rishabhbatra2750]

Hey Ishmohit, in my view PSUs are an absolutely wonderful Deep Value Buy over an extra elongated Time horizon i.e decades. In times of poor sentiments in the market, they get beaten down far worse than cigar butt situations despite having massive strategic value overall. Those are the best times to pick them and selection has to be done on first principles here with some scuttlebutt. Second & third order thinking rarely works. You see opinion of most of the experienced Ace investors on PSUs they just love these businesses. Engaging topic to discuss though. Thanks!!

[@RamChand54]

PSUs are not companies, they are govt departments, my experience as a former navaratna employee.

[@badrisrinivasulu8]

Investor can make money in psu aslo but dont expect structural wealth it will be zig - zag enter right exit right just like sbi barring irctc which I personally invested made 5 bagger as I could sense there services are one of the best amongst psu being a customer let it be rail neer, there app , there catering services in rajdhani , tourism trains adds lot of value and being asset light and i exited just kept a small portion around 3 percent of my portfolio and invested that same gains in affle which is far more valuable business

[@daxeshchaudhary6981]

GSPL is as good as other quality companies. It has a good terminal value.FCF machine. Decreasing Debt. But trading at a Market Cap to CFO of 5. I know it is govt owned company and govt is a capital misallocator but GSPL seems to be doing everything right. Reducing debt. Expending Transmission lines ( Margins are protected) to other states backed by Gujarat Gas as its CGD customer. It is weird that 36% ROCE company is so cheap.

[@nishanthbejgam1473]

PSU sector is definitely a value trap at a high level, but some of them do niche business and in a way investing in those is definitely a value buy. For example companies like Mazdock, Railtel, NMDC is definitely in the value buy zone..

[@rockud1]

Great analysis !! Yes never invest in them but PSU banks are available at cheap valuations, looks best for a swing trade... Buy low Sell High !! Thats my strategy ...

[@rajatbanerjee6323]

I started my journey without any knowledge by investing in ONGC ten years back. After ten years, they provided dividend, no change in valuation of the stock! I exited in 2021, however, recently bought on PSU that may do well in power sector. No sell or buy reco. I appreciate your video on this topic.

[@yogeshdwivedi3856]

Sir aap ne phir PSU buy kiya ye nahi smjha kuch

[@rajatbanerjee288]

@@yogeshdwivedi3856 Yes, things are changing... the power demand in India is increasing, so I rethink and allocate a tracking position in a PSU. Let see how it goes from here....

[@madsap]

Powergrid

[@koshyjoseph2605]

Eye opener on PSU companies with difference like corporate type with professionals. PSU companies are value traps & govt must sell PSU to private companies & focus more on governance & making India best in world. Hat's off for adding value.

[@ssgupta9178]

I will continue to buy psu on the basis of fundamentals based on qtrly half yrly and yearly performance ce. It is observed they also perform from time to time when govt.do not Interfaces.

[@kkapoor8308]

In my opinion it should be seen as a business rather than public or private if there are sectoral tailwind doesn't matter what it is the wave push them up until & unless it's in cyclical business I'm happy to explore opportunities in psu as I still remember it becomes value buy in bear market & value trap in bull markets evertime it happens & I make money I bought sbi @160 power grid average cost is 95 rs with 7-9% dividend on my buy price I mean how people can ignore such returns made safely everyone wants to take unnecessary risk making investing complex rather than simple

[@rprateek]

IRCTC and IGL are the two moated PSU with good ratios and performance .. IRCTC has several growth triggers lined up; IGL has sector tailwinds

[@kumark25170]

You are one of the best analysts (and fair one too) on KZbin.

[@SOICfinance]

Thanks Kumar :)

[@Ayeteyelahi7437]

Thanks A Lot Ishmohit Bhaiyya , Respect From Share Academy 💕💕

[@arrry100]

GMDC and SBI my favorite.

[@manojkumartibrewal4558]

Good analysis . One more example is compulsory merger / take over of bad bank by PSU bank - as saviour of last resort - which destroys wealth of good banks .

[@ganapatihegde1024]

Nice stock vlog! Great presentation. I am a new subscriber to your channel. Greetings from Plano, Texas, United States.

[@rishabhmalik4154]

Sir please launch a small case soon for us or for tribe members only 🙏

[@shonitsinghal]

If you still rely on his stock pics to build your portfolio, then I presume he failed as a teacher

[@trade.tuition]

@@shonitsinghal not necessary.. sometimes people are so busy to learn something and in that case if someone is asking for a smallcase then it's no failure as a teacher.

[@yogeshdwivedi3856]

@@shonitsinghal some time Student don't want to learn it

[@kshitizaggarwal1]

@@trade.tuition or stupid because they are Madarsa chaap

[@trade.tuition]

@@kshitizaggarwal1 ishmohit sir will be so proud of you if he reads your comment. Kudos to your education 🙃

[@apurvmandviwala7439]

Value Buy* *As the government is privatizing most of the businesses, and as you also mentioned about Hindustan ZInc, there are some PSUs which will benefit from the private sector involvement and management so if we think a bit on futuristic sectors, I believe there are some PSUs with potential.

[@palaknaik9000]

Buy REC and PFC, if they decline 10/- more from current price.

[@bikassamal5485]

Back in time they were value buy due to dividend yield. After taxation was introduced for dividends it got converted to trap.

[@hemantkothari372]

I have invested good in PSUbnkbees and cpseetf. I am confident that disinvestment will make these units a huge wealth creating machine over next 5-7 years, similar to ITC.

[@acmtravels7214]

PSU banks will loose to private player's

[@nitishbhatia25]

Did buy basket of psu’s an year ago only becuase i could not find other good ideas reasonably priced. But i am long term bearish on psu’s. They don’t have the incentives and capital allocation to compete with private counterparts in free market.

[@aastha222]

PSU are tactical play stocks, to be transacted considering the cycle stage and valuation.

[@gauravchauhan6100]

Sir sofa and background is good... 😉

[@sahilkushwaha5864]

Are PSU's good for a 5-10% swing trade?

[@rahuljain-qw4kv]

Please make video over recent market fall and what would be the best picks in this fall for value creation and wealth creation

[@rajnishkumargupta172]

I don't know it is a value buying or not. But one thing that I realized that for national interest or for public interest PSUSs must be controlled by government. In my opinion Some of the PSUs hold by Indian investors as per their comfort or in negligible amounts . To support public welfare works as you mentioned example of NTPC. ----- Also another thing is that government honestly managed these companies without having their parties political interest or ministers own interest. Hope you understand what I want to say.

[@Rational_Investing]

Sir I have a question, In valuation there we have to assume terminal multiple( p/e or p/fcf in DCF ), how to correctly assume terminal multiple?

[@InvestmentJournal]

IRCTC KA STOCK ek do din nahi ek ghante mein khel gaya 30% down and up, I luckily realised just 1 week before that government can do anything and booked profit and exited the account, it was just shear luck, that is why I remember that event. I do suspect it may possibly some kind of insider game

[@cajidcruz9479]

Value traps only. These are good for positional trades based on charts.

[@VashishthSinusEar]

Value buy if keenly researched. Black swan events can happen in non PSU entities as well

[@ManeeshJoshi]

Much needed. I was thinking to invest in PSU.

[@winteriscoming1298]

What’s ur view on BEML … WHICH is getting privatised…, does it open up new valuations

[@mohitagarwal4300]

Hii as you mentioned most of psu are owned by President of India, den whenever dividends are announced so dat amt will go to President during that time?

[@RajShah202]

Being a member of SOIC I feel very proud 👏 and very grateful for you and your honesty knowledge and wisdom 🙏 It's phenomenal

[@SOICfinance]

Proud to add value!!

[@priyanksharma2025]

can u give ur time to tlk ? wanted to tlk to u

[@RajShah202]

@@priyanksharma2025 Sure. Send me email or text message

[@CLYadav-u8y]

सर जी प्रणाम। Mazdock में १७००/जेड shares @ २६७/- के रेट में लिया है । होप लॉन्ग टर्म गेट some benefits.

[@venkatraomarella]

PSUs are only for those investors who expect good dividends but not capital appreciation. They should also be ready for any policy related decisions of Governments which beat the stocks down overnight (IRCTC for example)

[@chintandave3485]

I have 15% allocation in PSU sector in my portfolio, kept assuming them to be FD. Purpose is higher Dividend yield and Sovereign Guarantee. Good capital gains as well in few stocks.

[@ms-dk6xh]

Is it worth holding them?

[@chintandave3485]

@@ms-dk6xh It will show its worth in the Bearish Market

[@ms-dk6xh]

@@chintandave3485 I am new to market , what I observed in psu stocks that, they are cyclical in nature, gives dividend 😍, but as a new investor should I go for growth stocks more!?

[@ms-dk6xh]

@@chintandave3485 in bearish market ,by dividends??

[@chintandave3485]

@@ms-dk6xh Yes and will depreciate less than normal growth stock

[@realbobbyaxel]

VALUE TRAP: WAS IS AND WILL BE

[@karunbirsingh8154]

Guys, Tha ks for such a wonderful video. In my opinion one of good fortune creators would be Concor as and when privatised (investment Thesis on line of Hindustan Zinc)

[@nitishchirania6087]

@soic is IEX a good investment idea for medium term at current governance and valuations? Pls share your views

[@gautamgupta2921]

Galla di galla,where is this background from?? Leatherite sofa,25yrs old telephone ☎️,traditional wallpaper. Hotel transylvania?

[@nafasm]

Thanks much, I think govt can create a holding company like Singapore Temasek for PSU to unlock the potential of PSU. Aa a retail stock investor I want to avoid psu as that helps to focus on secular sectors by filtering sectors like psu metal etc moreover Psu stocks are expensive if we add DVR

[@balwindersinghbhuller372]

Value trap. Good analysis

[@karthikbs8749]

Setup is vibrant awesome

[@sarthaksanatani05]

Value buy REC lic housing finance also gave good returns

[@prasun6084]

In my opinion, PSUs are value buy in bear market and value trap in Bull market. Bull stays longer, so it's mostly value trap😂.

[@ashokchourasia1421]

Those investors wants to Dividends has invest Though investors wants to growth and Return not invest Thanks analysis

[@indranilroy9905]

Privatisation does not always lead to profitability, Jessop and Dunlop are two instances where supposed turnaround never happened.What we should ask for is decentralisation and professional management. If above happens PSUs become good opportunity,till then scope of upside will remain limited.

[@rameshcheeppilatputhanpura9903]

HAL,BEL ,FACT,RCF are some of the good PLUS.

[@bharat461]

@Soic thanks 🙏 Can you please elaborate Logistics Sector also as requested many persons and time 🌹

[@yatinawaal6682]

Yes I agree. Need a video on this sector.

[@SOICfinance]

Sure, soon :) Will cover it in depth

[@Djrahul1000]

Short video but ample of information 👍

[@ajitkumarjain6585]

It was value trap earlier, but now with less government interference many PSUs may bring value on the table for the investor

[@trollingunofficial5720]

Only for those, Where dilution of stakes or privatisation is happening

[@abhishekkaushal792]

Ishmohit bro plz tell me from where did u buy this couch?

[@yashpatidar3231]

Great efforts seeing in every video 🙌🏻

[@Dipaks005official]

Psu for dividend... And Safe bate...

[@sharathadiga1995]

What about SAIL ? it doesnt have such obligations

[@aarnavjain1391]

new background 👌😍

[@vijaydixit4158]

Excellent explanation of PSU companies

[@SOICfinance]

Glad you liked it :)

[@krishansah9840]

Really great analysis. PSUs are 100% value trap

[@charanjeevkohli3589]

Clearly value traps. Video came at right time, I was getting tempted by Cochin Shipyard

[@shambhavamchoudhary6489]

I think now they are a value buy for short term bull run ,but in long term they will be value trap

[@SarcasticAssertive]

Very relevant in 2022

[@prasadcnavale]

Sir packaging sector pe ek video....

[@Darsshnn]

thank you soic

[@dimpleagarwal6990]

Value buy

[@bipuljha792]

I'm trapped in IRCTC sitting on a loss at 28%. I had no idea back then, will wait for it go up and then sell it off.

[@arth_chart5280]

Thanks bro I was looking for videos on PSUs. 🙏🙏 A video on forensic accounting too please. 🙏

[@TravelwithBeacon]

Invested in PNB as i feel it will touch SBI as second largest bank.

[@nitinkumar7329]

I am into PSU companies only for dividend not for growth.

[@LaxmikantPawar7]

IRFC looks an value Buy. Any other views are welcome.

[@businessswot1003]

Fundamentally strong small caps shares names to buy now in crash

[@guptapraveen1977]

Thanks for study and i do agree it is a value trap

[@dharmikpatel5899]

Hindustan aeronautics gov should sell their stack... company has huge potential

[@harshmishra4793]

Moral of the story is Govt. interference effect the PSU sector !

[@clapton1987]

Ishmohit sir..is IEX , BSE, CDSL ar also a PSUs

[@abhaymodi642]

IEX CDSL me share holding pattern dekho vaha par fii and dii holding jyada hai gov. Se So indirectly they are the promotor and willing to take decision

[@clapton1987]

Thankx..🙏

[@kailashmat5614]

#irfc is it a value buy now 🇮🇳🇮🇳🇮🇳

[@maniramjangir7464]

Regarding DVR shares, in my opinion retailers are never in a position to reverse the decision of management. On other hand 90%+ retailers never exercise their voting right then why such a huge difference in DVR and normal shares ?

[@suggularishikanth3021]

Bcz to get a stock appreciated fii or diis should put their hands if they were not involved stock difference tend to happen bcz these institute s participate in voting

[@maniramjangir7464]

@@suggularishikanth3021 even then there should be no such huge difference. Value of both depends on preference?

[@heetpatel2798]

Bro, already in most of the stocks retailer investment is low, so, it doesn't matter. And if retailer investment is high then too, there are massive no. of people which includes people like who have more than 10,000 or comparetively more shares maybe they will do voting so, eventually voting right gets affected. I usually have 3-4 shares 😂, still, I give vote, although it I don't know it has significantly effect or not.

[@maniramjangir7464]

@@heetpatel2798 each and everyone should exercise the voting right either it makes an impact or not but infact it is a good habit.

[@heetpatel2798]

@@maniramjangir7464 yeah..you are right.. that's why I do it

[@nitinchauhan8234]

Paji.. Peter lynch on your T shirt looking like a pic of a Tooth with root.. got confused for seconds🤣

[@MrSatnamsingh143]

Veerji SAT SHRI AKAAL

[@kargilwarriers6600]

Bahut badiya sir Ji🙏🙏🙏.. No...

[@SOICfinance]

Thanks :)

[@shubhamajmera4709]

My simple philosophy: Sarkar or Sakari company dono se dur raho 😅

[@rajatram01]

New member sir let's see

[@Nishiskitchenrecipe]

Thanks for making such a informative video

[@hardikthakor9763]

Thanks for this video

[@SOICfinance]

Most Welcome :)

[@SunOfSydney]

Can you please make a video on Adani group companies? What are the possible reason they grow at a massive rates? Is it possible for them to retain this?

[@dhanasekaranr6450]

Low float. Pumping from Mauritius. Stay away

[@vinayk2175]

It's depends govt police. . . . . . . .As per policy it's Value trap

[@sanju1628]

Value Buy

[@sharad786able]

Value trap bhai👍

[@ks61765]

Pl. Make a video on LIC

[@Garyhryfrufr7dyfu]

Great background

[@SOICfinance]

Thanks :)

[@lakshmanankr3945]

no doubt they are value buys , but do it selectively

[@abhis1980]

I think at the current valuations PSUs are value buy .... Easily stocks can double from here.... It's sure PSU stocks are not deacdaes holding

[@rachanamajale4664]

Thanks sir 🙏🏻🙏🏻🙏🏻

[@SOICfinance]

Most welcome :)

[@kishorekumar8080]

Pls add subtitles bro

[@SOICfinance]

Will be added by monday

[@Shri_Ji__]

I smashed the like button and then smashed the subscribe button ...guess what... ...my phone is no more....peace

[@sanjayshah7344]

It's clearly value buy

[@jpsharma101]

HAL giving good returns

[@anirbanmanna2897]

SARDARJI ko sofa me bohot a66a lag raha hai 😀