I think the main point with PSU rally is operational improvements and increased Profits… like NPA cleanup in banks have led to increased profit … same case with management changes in other psu’s… have created the rally… so now the question is until when it will go on … i think the profits increasing is good thing … the issue comes with top line growth… psu’s will have very minimal top line/revenue growth compared private ones… and if profits are appropriate, prices will sustain but wont rally further if top line is not growing… thats the time to sell or take out initial investment atleast and leave the rest for dividend …
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