Analysts said despite their outperformance in the past two years, many shares in this space are still trading below their book value - an indicator of cheaper valuations. When the price-to-book value of a company is below 1, it means the market is underpricing the company's shares. Power Finance Corporation (PFC), REC SAIL , General Insurance, Oil India , and New India Assurance are among the PSUs trading below their book value. ONGC, which rallied 10% in the last six months, is trading at a book value of 0.71 times. By comparison, the Nifty has gained 7% in the past three months and 11% in the past year.

Source: Economic Times June 01, 2023 08:17 UTC