PSU stocks available at attractive valuations: Satish Ramanathan

In a chat with ET Now, Satish Ramanathan, Director & Head Equities, Sundaram Mutual, speaks about PSU stocks.

ET Now: If I look at your current declared portfolio, you have exposure to ITC, a large exposure to State Bank of India and a decent exposure to ONGC. I guess the bottom line here is that you expect the PSU stocks to make a comeback?

Satish Ramanathan: PSU stocks have been beaten quite significantly because of the regulatory and government issues. Having said that, they have fairly decent franchises available at very attractive valuations. So that is the reason why we have built up our position on PSU stocks as an alternative to some of the higher value stocks.