Best PSE Stocks for 5 years

Public Sector Enterprises or PSE are dedicated organizations known for their government backing and support. Known for their strategic importance and their valuable services, Public sector Enterprises can prove to be the best organizations that investors can select for investment. They offer a lucrative investment opportunity that investors must analyze based on their aspects like business portfolio, services, earnings, etc. Out of various public sector enterprises, rail Vikas Nigam Ltd and Bharat Heavy Electricals Limited are the two most renowned and valuable institutions that investors can select for their long-term investment portfolio. Discussing the two stocks, the following article rates the best PSE stocks that investors can select for the next five years.

Rail Vikas Nigam Ltd (RVNL)

Contributing to the development of the most essential infrastructure in India, RVNL serves as a recognized public sector enterprise known for its varied services. Delivering an extensive range of solutions for development of railway projects, RVNL offers metro construction, electrification, and even gorge conversion services.

The strong push from the government for rapid development and upgradation of the railway infrastructure and the overall financial strength of the company are the positive signs that investors must understand. The company has a strong order book, stable financial performance, low debt, and access to a portfolio of services that make it a worthy inclusion to a long-term investment portfolio of an investor. Moreover, with the privatization potential of the company, investors can even get access to better returns in the long term.

The RVNL share price is a sign of the underlying strength and return-generating capability of the company. With more than 2000% returns in the last five years, investors have been the beneficiaries of many fold returns that RVNL stock has delivered to its investors.

Bharat Heavy Electricals Ltd (BHEL)

Another reliable public sector enterprise that investors can select for their investment portfolio is Bharat Heavy Electricals Ltd. Engaged in energy and infrastructure development, the company serves as one of the most reputed organizations that have helped with rapid development in the field of energy defense and even railways. The company has transitioned from thermal to renewable sources of energy production with a clear focus on the development of solar wind and hydropower. Moreover, the company has been able to generate consistent revenue over the years with strong orders from various public and private institutions.

The multifold increase in the BHEL share price and the current attractive valuations also serve as two important aspects that investors must consider for investment into BHEL. Strong support from the government, the Make-in-India initiative, and the overall financial strength of the company are all positive points that make BHEL a worthy selection for an investment portfolio.

Conclusion

Both RVNL and BHEL serve as the best public sector enterprises that investors can consider for investment for the next five years. However, complete research and analysis are essential before making a final decision. The current stock valuations along with the overall internal strength of the companies are essential aspects that investors must consider and analyze before selecting them for their investment portfolio.