Top 2 PSU Maharatna Stocks To Buy For Sharp Upside, Demands Rising: Motilal Oswal

Maharatna stocks are those top PSUs, that recorded above Rs. 5,000 crore of net profit for 3 consecutive years, with average annual turnover of Rs. 25,000 crore for 3 years, or have recorded average annual net worth of Rs. 15,000 crore for 3 years. Here top 2 Maharatna stocks have been discussed, brokerage firm Motilal Oswal has given buy rating to these stocks.

Coal India - stock performances

The Current Market Price (CMP) of Coal India is Rs. 231. Motilal Oswal has estimated a Target Price for the stock at Rs. 290. This stock has the potential to give 26% return, in the upcoming 1 year. In the past 6 months it has surged 26.06%, and in last 1 year its share price has gained by 49.03%. Its 52-week high range is Rs. 240.50, and 52-week low range is Rs. 139.15. It is a large-cap stock with a market capitalization of around Rs. 141,681 crore.

The company can continue to earn healthy margins led by high e-auction realisation; Rising power demand, surging global coal prices due to geopolitical tensions and low coal inventory levels appear to have put Indian coal production major Coal India Ltd (CIL) in a favourable position.

Company profile: Coal India

Coal India Ltd (CIL) is a Public Sector Undertaking under the Ministry of Coal Government of India that has the 'Maharatna' status. CIL contributes to 85% of total domestic coal production and 75% of total coal-based generation. CIL contributes to 55% of total power generation and meets 40 % of the primary commercial energy requirements of the country. It operates Asia's largest opencast coal mine at Gevra with 45Mntn per annum coal production. CIL ended the last year with the best-ever production figure of 622.63 MT registering a growth of 4.4 %, the highest ever offtake of 661.9 MT - chronicling a growth of 15.2%. BCCL, NCL, and MCL achieved their respective production targets of FY'22 with a growth of 24%, 6%, and 14% respectively over last year.

SAIL - stock performances

The Current Market Price (CMP) of SAIL is Rs. 81. Motilal Oswal has estimated a Target Price for the stock at Rs. 96. This stock has the potential to give 19% return, in the upcoming 1 year. In the past 6 months it has fallen 20.67%, and in last 1 year its share price has fallen by 25.47%. Its 52-week high range is Rs. 131.80, and 52-week low range is Rs. 63.60. It is a large-cap stock with a market capitalization of around Rs. 32,569 crore.

Company profile: SAIL

Steel Authority of India Limited (SAIL) is one of the largest steel-making companies in India and one of the Maharatnas of India's Central Public Sector Enterprises. SAIL produces iron and steel at five integrated plants and three special steel plants, located principally in the eastern and central regions of India and situated close to domestic sources of raw materials. SAIL manufactures and sells a broad range of steel products. The Government of India owns about 65% of SAIL's equity. However, SAIL, because of having the 'Maharatna' status, enjoys significant operational and financial autonomy.

Disclaimer

The above stock was picked from the brokerage report of Motilal Oswal. Investing in equities poses a risk of financial losses. Investors must therefore exercise due caution. Greynium Information Technologies, the author, and the brokerage house are not liable for any losses caused as a result of decisions based on the article.