The report highlights specific undervalued sectors including iron and steel, housing finance and PSU banks, indicating a favorable market position for investors. These sectors are currently trading at attractive corrections from their recent highs, making them attractive options for those looking for value.
ETMarkets.comAlongside Iron & Steel and Housing Finance, the research notes that public sector banks have improved their position, with reduced concerns over governance, technology and credit costs. As a result, they are now seen as competitive with private banks in terms of valuation. Commenting on the outlook for PSU banks, Shailesh Saraf, small case manager and founder of Value Stocks, said: “We continue to have strong belief in PSU banks, which are much better positioned valuation-wise relative to their private sector peers. The Nifty PSU Bank- index is trading at 8.5, while the Nifty Private Bank Index is trading at 15.5. Transition and reforms in the banking sector. These stocks are currently available with good corrections and should be considered as promising investment opportunities.The study identifies five subgroups with overvalued valuations, including coal, financial institutions, logistics solution providers, electricity transmission and travel and travel-related services.
ETMarkets.comThe report also highlights that sectors such as defence, railways and shipbuilding are available after significant corrections from their recent highs, offering lucrative investment opportunities. These sectors have shown strong sales and profit growth, making them attractive options for investors at current prices.
ETMarkets.comBharat Electronics and Hindustan Aeronautics, for example, have robust order books of over Rs 76,000 crore and Rs 94,000 crore respectively. The report indicates that these companies are well positioned for future growth.
(Disclaimer: Recommendations, suggestions, views and opinions expressed by the experts are their own. These do not represent the views of the Economic Times)
