In case of PSUs ,irrespective of whether it makes profit or not,its shareholders will not make money.Employees of PSUs make more money than its shareholders.These are just proxies of govt and run as welfare schemes.stock available at 6% dividend yield and at 9 times PE are not sufficient condition to be a value buy .It only shows that the stock is at good price.But for being a value buy the stock must have the ability to attract high PE multiple.
For example ,can power grid increase its tariff with 20% CAGR ? Govt will not allow it ?
For example even if LIC has good cash flow ,how is it matter if it takes pathetic calls like buying IDBI bank.Tomorrow govt will tell power grid to buy another bankrupt company.
If such things are happening ,then why would anybody buy PSUs ?
If you are talking about Reliance,I personally do not like capital intensive businesses and the businesses in which key management personnel appear with politicians and in media.
I just like silent cash machines …companies who make money silently.
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