PSU stocks
Public Sector Undertakings (PSUs) are government-owned corporations that are integral to India’s economy and infrastructure. Established through nationalisation initiatives in the 1950s, these entities aim to provide essential services and promote equitable economic growth.
With the government holding at least 51% of their paid-up share capital, PSUs are classified into Maharatna, Navratna and Miniratna groups based on financial performance and operational autonomy.
As the month begins, companies start announcing their financial results. PSU stocks are popular among investors for their reliable dividend payouts, offering a lower-risk option than other sectors.
`Historical trends often give investors an idea of ​​when specific PSU stocks may declare dividends.
PSU Stocks with Dividend Patterns in February and March
1. Coal India Limited
Coal India Limited (CIL), a Maharatna company and the world’s largest coal producer, has a market capitalisation of ₹2.39 lakh crore. Its shares rose 2.28% to ₹387.85 on the BSE on Friday.
- Dividend History: ₹5.25 declared on February 20, 2024; ₹5.25 on February 8, 2023; and ₹5 on February 21, 2022.
- Financial Performance: Revenue from operations declined 6.4% to ₹30,673 crore in Q2 FY25, while net profit fell 22% to ₹6,275 crore.
- Stock Performance: Returned 2.30% in the past year and is up 0.52% year-to-date.
Founded in 1975, CIL primarily serves the power and steel industries, while cement, fertilizers and brick kilns are other clients.
2. Bharat Electronics Limited
Bharat Electronics Limited (BEL), a Navaratna PSU serving the defence sector, has a market capitalisation of ₹2.06 lakh crore. Its shares rose 2% to ₹282 on the BSE on Friday.
- Dividend History: ₹0.7 declared on February 9, 2024 and ₹0.7 on March 22, 2024; ₹0.6 declared on February 10, 2023 and ₹0.6 on March 24, 2023.
- Financial Performance: In Q2 FY25, revenue grew 15% to ₹4,605 ​​crore while net profit grew 38.4% to ₹1,093 crore.
- Stock Performance: Gave 51% return in the past year, but declined 4% year-to-date.
BEL specializes in electronics technology for defense and civilian applications, with a growing presence in international markets.
3. Power Finance Corporation Limited
Power Finance Corporation Limited (PFC), India’s most profitable NBFC, has a market capitalization of ₹1.43 lakh crore as of FY24. Its shares were priced at ₹433.30 on the BSE on Friday.
- Dividend History: ₹3.5 declared on February 20, 2024 and ₹3 on March 22, 2024; ₹3.5 in February 2023 and ₹6 on February 25, 2022.
- Financial Performance: In the second quarter of FY25, revenue grew 15% to ₹25,722 crore, while net profit grew 8.8% to ₹7,215 crore.
- Stock performance: Returned 10% last year and declined 3.35% year-to-date.
Founded in 1986, PFC, registered with RBI as an infrastructure finance company, provides financial support to power, logistics and infrastructure sectors.
4. Hindustan Aeronautics Limited
Hindustan Aeronautics Limited (HAL) has a market cap of ₹2.75 lakh crore, its shares rose 5.14% to ₹4,120 on Friday.
- Dividend history: ₹22 declared on February 20, 2024; ₹20 on March 20, 2023; and ₹26 on February 17, 2022.
- Financial Performance: In Q2 FY25, revenue grew 6% YoY to ₹5,976 crore, while net profit grew 22% YoY to ₹1,510 crore.
- Stock Performance: Returned 39.27% ​​over the last year and declined 1% year-to-date.
HAL is engaged in the design, manufacture and servicing of aircraft, helicopters, aero-engines, avionics and aerospace structures.
Investors interested in PSU stocks should keep an eye on upcoming financial announcements and trends for potential dividend declarations.
These entities continue to play a vital role in India’s economic landscape, offering attractive investment opportunities.
Also Read: $TRUMP Coin Shakes the Crypto World: Donald Trump’s Cryptocurrency Hits $14.5 Billion Debut
Pingback: Why Tata Steel and JSW Steel Experienced Sharp Cash Reserve Declines Between FY22 and FY24