I think its the PSU overhang why many of us missed the bus on this one and even PSU banks. Its more like ‘PSU discount’ rather than ‘value trap’, because these stocks have always sold at a discount to private players, and even today.
It can also be called ‘PSU bias’, we think its normal for a great company to sell at a discount because its a PSU.
But those concerns are legitimate for many of us, even if a PSU is doing well, and the government overhang is a reality.
Even at 270, PFC sells at below one price to book. Will be nice to know how many of us are willing to buy it today.
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