Mumbai: The Market capitalisation (m-cap) of 86 Public Sector Undertakings (PSUs) declined by 9.69 lakh crore, or 13%, between July 31 and now, to Rs 63.86 lakh crore. The PSU Index has declined by 13% from its peak value of 22,814, witnessed at the end of July. During the same period, the BSE Sensex fell by only 3%.
Market capitalisation or ‘market cap’ is a measure used to evaluate the total value of a publicly traded company. It is calculated by multiplying the current share price of the company by the total number of outstanding shares. In essence, market capitalisation represents the theoretical value of a company.
Prior to this correction, PSU stocks experienced a strong rally. Over the one-year period up to July 31, the BSE PSU Index jumped by 94.5%, compared to the Sensex’s 23% rise. In the three-year period up to July 31, the BSE PSU Index gained 195%, while the Sensex rose by 55.4%.
Despite the recent correction, the BSE PSU Index has still outperformed the benchmark Sensex. Year-to-date in 2024, the BSE PSU Index surged by 28.06%, whereas the Sensex gained only 10%. Over the past year to date, the BSE PSU Index climbed 56.5%, compared to the Sensex’s 22.3% increase.
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Among the 86 listed PSU shares, with the exception of NALCO, Orissa Minerals, and Bank of Baroda, all others declined between July 31 and now, with losses ranging from 2% to 45%. With a 45% fall, Cochin Shipyard was the top loser. Despite this decline, the stock still delivered a return of 114% year-to-date in 2024 and 176.8% over the past year.
MTNL ranked second among the top losers, with its share price dropping 41.6% between July 31 and November 8. Other significant losers include Chennai Petroleum, down 37.4%; Shipping Corporation of India, down 37.3%; and Garden Reach Shipbuilders, down 36.6%.
In contrast, NALCO’s share price rose by 23% between July 31 and now. Year-to-date in 2024, it delivered a return of 81%, and over the past year, it soared by 154%. Orissa Minerals’ stock gained 12.5%, while Bank of Baroda rose marginally by just 1%.
The market capitalisation of LIC eroded by Rs 1.55 lakh crore. Coal India ranked second, with a market cap loss of Rs 53,492 crore, followed by Indian Oil Corporation, with a loss of Rs 52,813 crore.
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