Most of major Gujarat public sector units (PSUs) have outperformed market indices this year, despite worsening inflation and the Ukraine-Russia war. The majority of these state companies have given higher returns, up to 138%, this calendar year.
Gunjan Choksi, director of a stockbroking firm said, “Gujarat PSUs are mainly involved in chemicals, fertilizers, mining and energy-related businesses, all of which are doing very well after Covid. Companies such as GNFC had witnessed a good business cycle before Covid and for the past five years had been on investors’ radar. For the past few months, GMDC has also been showing a good increase in its share price due to high coal prices globally. The company enjoys a near monopoly in lignite mining. Companies such as Gujarat Alkalies benefited from overall bullishness in the chemical business. Hence, Gujarat public sector undertakings have drawn long-term investors.”