How to judge GOV PSU stocks?

Unpaid partnership with government stocks🤓
Government stocks value is in its assets, not profit margins. Since govt is non profit body, it gives most of its services at lowest price points hence EBITA or Net profit margins are thin but their whole game is on volume, i.e number of people they serve and distribution they have because of having all data and resources directly available by government. Companies like IOC have huge fixed assets in the form of plant and machinery which have capacity to reach any increase in demand - they are also cash rich companies, kyuki govt se bada vasooli bhai kon hai💀
Although remember these companies fail to pass on increased prices of raw materials on their customers and that affects their profitability in case of any economic or industry crisis
Since many of these governments companies are traditional like NALCO which is in mining and producing aluminium, and such commodity businesses have cyclical demand. Mtlb jab real estate aur economy ki progress hori hai tab aluminium ka demand badhega and tab NALCO jese companies ka sales achanak boost hota which increases their earnings aur news yeh sab aakh mein aate hi these stocks become favourites. But after the cycle ends, these stocks are in side ways trend for years but in that period they give heavy dividends to investors. This was example of one such company, different sectors have different cyclical demand, depending on how world is moving ahead and how strong is the economy of the country📈
IRCTC is one of the different companies which is backed by technology and services hence it has better profitability and is trading on high PE with monopolistic features.
Bonus point : Govt companies react heavily with events like budget and election, which you can see in current times. This makes it again a news that moves these stocks unexpectedly 🎯
#stockmarket #money #finance #explore #investment #republicday

[@iamHardy]

🚀🚀🚀🚀