As I am an investor in Indian capital markets, I know what investors think about public sector companies. Their issues, their management, their profitability and so does the share price. All is just weak.
Just read about report on Infrastructure in Indian economy. Infrastructure is capital intensive. It is not very big issue that some of them have debt on their balance sheets. Beta is so high. P/E RATIO IS SO LOW THAT IF I assume 8.5 p/e for no growth industry, then this peoples are literally borrowing their growth. But….
There is a company named NBCC. National Building Construction Corporation. It does not have debt. If you invested in their IPO then your wealth is definitely went nearly three times.
Coal India. One another company. Nearly debt less. Holding so good Assets. One of the best in class of Dividend Yield. Blue chip but still showing characteristics of Growth company.
State Bank of India. What to say about them? India’s largest Bank with best management. Financing growth with maintained low NPAs.
It does not make any sense to avoid any company just because of they are Government owned.