PSU Stock Backed by Rakesh Jhunjhunwala Plummets 42%, Axis Securities Remains Optimistic

A public sector undertaking (PSU) stock, once favored by the late investor Rakesh Jhunjhunwala, has experienced a significant decline of 42% over the past six months. Despite this sharp downturn, Axis Securities maintains a positive outlook, projecting a 10% upside potential for the stock. The brokerage firm's bullish stance comes amid a broader rally in PSU stocks, with some gaining up to 170% in 2022. Analysts suggest that PSUs catering to niche markets and leading their segments have outperformed due to compelling valuations. Investors are now faced with the decision to buy or sell as the stock attempts to recover from its recent slump.
Source: The Economic Times