RVNL to Cochin Shipyard: Check 5 PSU stocks down up to 60% from 52-week high in this market crash

Several leading public sector companies have seen their share prices significantly drop from the year-high levels before the recent market crash. As more than ₹33 lakh crore of investor wealth was wiped out in the last six sessions of losses in benchmark indices, NIFTY and SENSEX, many state-owned companies have seen a decline of up to 60% in stock price from their previous 52-week high levels.

The drop in PSU stocks occurred amid a weak market triggered by FPI selling, poor Q3 commentary, and uncertainty over US trade tariff policy.

Sectoral indices NIFTY PSE and NIFTY CPSE have declined up to 7% in the past 30 days on unabated selling by foreign investors. NIFTY PSE has crashed 29% from its 52-week high level, while NIFTY CPSE has also shed 28% from the year-high levels.

Among the PSU stocks, MRPL, Cochin Shipyard, IRCON, HUDCO, and RVNL are major losers that have crashed up to 60% from their 52-week highs.

PSU stocks gained momentum after the general election results in hopes of higher government capital expenditure. However, shares of state-run companies took a U-turn after October 2024, dragged by FII selling and other factors. Also, the lack of major announcements for infrastructure boost and public sector spending in the Union Budget dampened investor sentiment.

Budget 2025 disappoint investors

Finance Minister Nirmala Sitharaman announced a nearly 10% increase in capital expenditure in the Union Budget 2025-26 to around ₹11.21 lakh crore, which failed to enthuse stock investors. Lower-than-target spending by the government in the current fiscal and a marginal hike compared to the budget estimate of FY 2024-25 triggered selling in PSU stocks in rail, defence, construction, and other sectors.

FPI selling a major drag on stocks

Foreign portfolio investors have been major sellers in the market since October 2024. FPIs withdrew a record ₹114,445.89 crore in October, ₹45,974.12 crore in November, ₹16,982.48 crore in December and ₹87,374.66 crore in January. FPIs have been net sellers of shares worth ₹17,129.53 crore in February so far.

Heavy selling by foreign investors has also hit market sentiment while dragging the PSU stocks from the year-high levels.

High valuations concern

PSU stocks attracted investors following the government’s thrust on infrastructure, the Atmanirbhar Bharat mission, and social welfare schemes like the Jal Jeevan Mission. Due to inflows, the valuations of PSU shares soared, which triggered profit booking by some investors. Also, the cheap valuation of competing Asian markets like China triggered FIIs outflow from Indian equities.

Mangalore Refinery and Petrochemicals Limited (MRPL)

MRPL reported a loss of ₹697 crore for the second quarter of FY25 and delivered mixed financial performance in the third quarter of FY25. The company reported a net profit of ₹309 crore, marking a sharp turnaround from the ₹697 crore loss recorded in the previous quarter. Net profit rose owing to higher refining margins and cost optimisation measures. However, the company reported a 12% decline in revenue to ₹21,871 crore compared to ₹24,968 crore in Q2 FY25.

Cochin Shipyard

Ircon International

HUDCO

A lower allocation for the PMAY CLSS scheme in the Union Budget 2025 has impacted real estate stocks. Lower allocations are seen as negative for housing finance companies in the affordable segment. Retail investors have remained cautious on the stock despite its strong performance in the third quarter of FY25.

RVNL