Government Stocks – 5 Stocks With Attractive Prices

Government Stocks

In the aftermath of the Covid-19 pandemic, Indian stock markets witnessed a remarkable rally, with government stocks emerging as the biggest gainers. Public sector companies garnered significant attention from investors, with many achieving multibagger status. This surge in public sector stocks is not merely a fleeting trend; experts anticipate that it is just the beginning, especially with the impending general elections poised to provide a fresh impetus to these stocks.

Prime Minister Modi’s Pre-Election Boost to Public Sector Stocks

The pre-election rallies featuring Prime Minister Modi have acted as a catalyst for further growth in public sector stocks. The Modi regime has overseen substantial gains in Indian stock markets, and there are still several bullish stocks within the sector that continue to attract investors with their attractive prices. Here, we delve into five such government stocks that present compelling investment opportunities for long-term investors.

1. ONGC: Fueling India’s Growth Trajectory

ONGC (Oil and Natural Gas Corporation Limited) stands out as a top performer in the country’s oil and gas sector. With recent improvements in margins, ONGC has solidified its position as the largest crude oil and natural gas company in India, contributing significantly to the nation’s GDP. Established by the Government of India in 1956, ONGC boasts a promising future, making it a favorable choice for investors.

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ONGC: At a Glance :

• Current share price: Rs.267
• 52 Week High/ Low: Rs 281/ Rs 146
• Stock PE: 7.32
• Book Value: 246 Rs
• Dividend: 4.23%
• ROCE: 13.9%
• ROE: 14.1%
• Face value: 5 rupees

2. Coal India: Powering the Nation’s Energy Needs

Coal India holds a dominant position in the global coal industry, engaging in coal mining and production alongside operating coal washeries. As a major supplier to sectors such as power, steel, cement, fertilizers, and brick kilns, Coal India plays a pivotal role in meeting India’s energy demands. With impressive financial metrics and Maharatna status, Coal India presents an attractive investment opportunity in the energy sector.

Call India: At a Glance :

• Current share price: Rs.435
• 52 Week High/ Low: Rs.488/ Rs.208
• Stock PE: 9.14
• Book Value: 113 Rs
• Dividend: 5.55%
• ROCE: 27.15%
• ROE: 49.20%
• Face value: 10 rupees

3. REC: Financing India’s Energy Transition

REC (Rural Electrification Corporation Limited) has emerged as one of the best multibaggers in recent times, financing projects across the energy sector value chain, including conventional and renewable energy sources. As a Central Public Sector Undertaking under the Ministry of Power, REC plays a vital role in facilitating India’s energy transition while delivering favorable returns for investors.

REC: At a Glance :

• Current share price: Rs.438
• 52 Week High/ Low: Rs 524/ Rs 113
• Stock PE: 8.81
• Book Value: 248 Rs
• Dividend: 2.82%
• ROCE: 12.45%
• ROE: 19.41%
• Face value: 10 rupees

4. Indian Railway Finance Corp Ltd: Driving Rail Infrastructure Development

Indian Railway Finance Corporation Limited (IRFC) plays a pivotal role in financing the acquisition and creation of assets for Indian Railways. Established in 1986, IRFC serves as the funding arm of Indian Railways, raising capital from domestic and foreign markets to support rail infrastructure development. With its Miniratna status and strategic importance in India’s transportation sector, IRFC offers promising investment prospects.

IRFC: At a Glance:

• Current share price: Rs.148
• 52 Week High/ Low: Rs 193/ Rs 25.4
• Stock PE: 32
• Book Value: 36.9 Rs
• Dividend: 0.99%
• ROCE: 9.08%
• ROE: 13.93%
• Face value: 10 rupees

5. Power Grid Corporation of India Ltd: Empowering India’s Power Transmission

Power Grid Corporation of India Limited (PowerGrid) holds Maharatna status and stands as the largest electric power transmission company in India. With a significant government stake, PowerGrid plays a crucial role in planning, implementing, and maintaining interstate transmission systems. Since its inception in 1989, PowerGrid has been instrumental in ensuring reliable power supply across the nation, making it an attractive investment avenue.

The PowerGrid: At a Glance

• Current share price: Rs.288
• 52 Week High/ Low: Rs 295/ Rs 162
• Stock PE: 17
• Book Value: 93.4 Rs
• Dividend: 3.91%
• ROCE: 13.1%
• ROE: 19.6%
• Face value: 10 rupees

Conclusion

In conclusion, government stocks offer compelling opportunities for investors seeking long-term growth and stability. With a favorable macroeconomic environment, bolstered by government initiatives and upcoming elections, these stocks are poised to continue their upward trajectory. By strategically investing in stalwarts such as ONGC, Coal India, REC, IRFC, and PowerGrid, investors can diversify their portfolios while contributing to the nation’s growth story. As India marches towards its economic aspirations, government stocks remain steadfast pillars of investment resilience and prosperity.