Top 10 Multibagger PSE Stocks from Budget 2023 to 2024: An investment of Rs 50,000 would be worth Rs 2.63 lakh in top performing stock!

A remarkable 27 out of 56 analysed PSE stocks from the BSE PSU Index delivered returns exceeding 100 per cent

The 2023 Union Budget, aptly named "Saptarishi," unveiled seven priorities aimed at driving India's growth during the "Amrit Kaal" period (2023-2047). These priorities included infrastructure development, green energy, and social welfare initiatives, all of which translated into significant budgetary allocations for various sectors. This strategic fiscal plan proved to be a game-changer for PSEs, particularly those operating in infrastructure, energy, and housing sectors.

Performance Boost for PSEs:

The increased budgetary allocations had a clear impact on the performance of PSE stocks. From February 1, 2023, to January 30, 2024, a remarkable 27 out of 56 analysed PSE stocks from the BSE PSU Index delivered returns exceeding 100 per cent, turning into multibaggers for investors. Not a single stock from this pool witnessed negative returns during this period, a testament to the budget's positive impact.

Top 10 Multibagger PSE Stocks:

Leading the pack were Indian Railway Finance Corporation (IRFC) with a staggering 428 per cent return, followed by REC Ltd. (317 per cent) and Power Finance Corporation Ltd. (308 per cent). These companies heavily benefited from Budgetary outlay which was allocated to their specific sectors.

As evident from the table, each of these stocks demonstrated significant returns, turning a Rs 50,000 investment into substantial wealth. The robust performance of these PSE stocks is a testament to the positive impact of the 2023 budget, driving growth and value in key sectors. Investors who seized the opportunities presented by these stocks have not only reaped financial rewards but have also contributed to the success stories of India's Public Sector Enterprises.

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2023 Budgetary Tailwinds:

The 2023 Budget fueled the impressive performance of these PSEs through several key allocations:

• Infrastructure Boost: A massive Rs 2.4 lakh crore for the railways, nearly nine times the FY14 allocations, significantly benefitted IRFC, IRCON, and RVNL.
• Energy Transition Focus: Rs 35,000 crore allocated for initiatives like the Green Credit Program and National Green Hydrogen Mission boosted REC, PFC, and SJVN.
• Housing Push: Over Rs 79,000 crore allocated for PM Awaas Yojana and Rs 10,000 crore for the urban infrastructure development fund aided HUDCO and NBCC.
• Defense Strengthening: Rs 5.93 lakh crore for the defense sector, with defense production surpassing Rs 1 lakh crore, supported Cochin Shipyard.
• Telecom & IT Focus: Rs 1.23 lakh crore for postal and telecom projects, with Rs 1.53 lakh crore infused into BSNL and Rs 52,937 crore allocated for its 4G and 5G services, benefitted ITI Ltd.

Conclusion

The 2023 Union Budget's strategic focus on infrastructure development, green energy, and social welfare initiatives proved to be a boon for PSEs. The significant budgetary allocations fueled multibagger returns for top-performing stocks, highlighting the budget's effectiveness in driving growth across key sectors. As India moves forward in the "Amrit Kaal," continued focus on these areas through targeted budgetary policies can potentially unlock even greater potential for PSEs and contribute to the nation's overall economic progress.

With the upcoming Budget 2024 just around the corner, investors are eagerly waiting to see how the government plans to continue its focus on infrastructure development, green energy, and social welfare initiatives.
 

Disclaimer: The article is for informational purposes only and not an investment advice.