Chart Beat: For PSUs, it is time for earnings catch-up

PSU companies’ earnings performance lagged the Street’s expectations sharply in the December quarter. (Image: Pixabay)
PSU companies’ earnings performance lagged the Street’s expectations sharply in the December quarter. (Image: Pixabay)

Summary

  • To justify valuations after the steep rally, earnings performance needs to catch-up meaningfully

The S&P BSE PSU index has nearly doubled in the last one year with the companies being seen as potential beneficiaries of the government's heightened focus on capital expenditure. PSU is short for public sector unit.

Now, to justify the valuations after the steep rally, earnings performance needs to catch-up meaningfully. An analysis by Yes Securities showed that PSU companies’ earnings performance lagged the Street’s expectations sharply in the December quarter (Q3FY24), falling to 2%, putting up the weakest in the past six quarters.

Here, earnings beat refers to the variance between reported earnings and average of analysts estimates compiled by Bloomberg.

Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.
more

MINT SPECIALS

Switch to the Mint app for fast and personalized news - Get App