PSU stocks offer no substantial value for traders: Bonanza Portfolio Ltd.

Avinash Gupta, AVP Research Equity, Bonanza Portfolio Ltd. aired his views on public sector undertaking stocks and the upcoming FPO while speaking to ET NOW said stocks like REC or rather the public sector undertaking stocks are very attractive for those who are looking for a very safe and long-term and steady growth kind of a scenario.

How would you approach REC at this point in time both in terms of the cash markets as well as the upcoming FPO, a lot of talk about a larger discount being given, would you be interested? Are you recommending it?

See, stocks like REC or rather the public sector undertaking stocks are very attractive for those who are looking for a very safe and long-term and steady growth kind of a scenario.

I mean at present, there is really no effort to market these stocks in that manner but in the short run, there is no charm left in it.

For the traders, there is nothing in it because the price is well known and I mean the government also cannot give too much of a discount, they cannot be seen throwing away the stocks just at a very low price and, therefore, I do not see too much of a discount coming in.

If the government offers too much of a discount, yes, there would be a fair amount of interest in the stock but this stock remains attractive even for long-term investors.