Sir…why I stay away from PSUs…1000 reasons not to buy…But if I have say it in one line,the leaders in the PSUs are chosen according to the sequence number (First in First Serve) in which they have joined in the organisation and where as other companies choose their leaders in merit.
So,a company having underlying process based on sequence number can’t beat a company having merit based process.
The low PE,Book value,Dividend yield of PSUs are just there to fool ourselves.
PSUs are like a cricket team…with following qualities
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The most senior player will be the captain and will remain captain till age of 60.
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You have a pre-defined bowling/batting schedule of players which you can’t change depending upon the match condition ,which is dynamic in nature.
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The owner of the team is not interested in winning matches.
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If virat kohli would have been in this team,he would be batting in no.8 perhaps.
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Team owner can any time tell the players to hit wicket…just like oil marketing companies are selling petrol/diesel in below manufacturing price and taking losses.
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