GAIL, Bharat Electronics, BPCL, Dredging Corporation stocks were among gainers during Friday's session. Volatility among public sector stocks continues as NTPC Green Energy, NHPC, IREDA, IRFC stocks move due to news flow. As NSE Nifty is eyeing all-time highs amid renewed optimism among investors, we can expect higher volatility and possibly buying among public sector stocks as well during the current week. Many of the PSU stocks are still available at attractive valuations. Many of these counters have recently bounced from their 52-week or multiple-year lows. TopNews Team has reviewed some of the stocks from the sector for short term investors and traders.

India’s Power Play: GAIL, BEL, BPCL, and PSU Giants in Focus Amid Key Triggers

India’s state-run enterprises have moved into the spotlight once again, with key developments driving investor sentiment across the board. From regulatory tailwinds and Sensex inclusion to aggressive capex and renewable energy expansion, stocks like GAIL, Bharat Electronics, BPCL, NTPC Green Energy, NHPC, and Dredging Corporation of India are at the intersection of policy and performance. While some counters face execution and valuation risks, others are riding momentum fueled by strong financials and strategic wins.

GAIL (India) Ltd: Awaiting Regulatory Winds to Turn in Its Favor

Jefferies’ recent Buy call on GAIL hinges on the Petroleum and Natural Gas Regulatory Board’s (PNGRB) anticipated decision on pipeline tariff hikes. The PSU has applied for a 33% increase in tariffs, which could substantially lift its transmission EBITDA and improve its return on capital employed (ROCE) from 8% to 10–12% by FY27, even under conservative hike estimates of 10–20%.

On the charts, GAIL crossed its 200-day moving average on June 27—a historically bullish signal that has led to a 5.27% average return in the following 30 days. Despite a 2.1% decline YTD, it rallied 1.7% on June 26 in anticipation of the tariff decision.

From a results standpoint, Q4FY25 EBITDA exceeded expectations by 11% due to robust gas marketing. Analysts at Motilal Oswal forecast an 11% PAT CAGR through FY27 with steady growth in transmission volumes and improving RoE.

Analyst Targets:

Bharat Electronics Ltd (BEL): Marching with Momentum into the Sensex

BEL’s entry into the BSE Sensex effective June 30 brings with it a potential $378 million in passive fund flows. The stock already reflects this optimism, backed by a ₹3,500 crore order intake in June alone.

Q4FY25 results confirmed operational strength: ₹2,127 crore net profit (up 18.4% YoY) and EBITDA margin at 30.8%. The company now boasts an ROE of 29.3% for FY25 and has scaled its capex commitment to ₹900+ crore, eyeing ₹1,000 crore+ in subsequent years.

Analyst sentiment remains overwhelmingly positive, with 82.6% of analysts maintaining a Buy rating and price targets ranging between ₹404 and ₹500.

Analyst Targets:

BPCL: Refining Margins and Policy Tailwinds Keep Bulls Interested

BPCL posted a Q4FY25 GRM of $9.2 per barrel, significantly above estimates, prompting a 6% stock surge. With LPG under-recovery compensation expected in the next few months and crude prices below $70/bbl, both margins and sentiment look favorable.

Though standalone EBITDA and PAT declined YoY, adjusted PAT beat estimates by 71%. The company’s three-year return now stands at 111.4%, with its valuation metrics (PE of 10.73, PB of 1.73) suggesting room for rerating.

Analyst Targets:

Dredging Corporation of India: A Surprise Turnaround Story?

The PSU surprised the market with a Q4FY25 profit of ₹21.4 crore—up 182.4% YoY and 33% sequentially. FY25 revenues rose 21%, outpacing its three-year CAGR. However, despite the spike, RoE remains negative (–3.6%) and the PE ratio is deeply negative at –71.5.

While promoters hold 73.5% and retail investors 19.4%, the stock remains volatile. It’s 51.7% below its 52-week high, despite gaining 29.2% in the last three months.

No updated analyst targets were available—likely reflecting a wait-and-watch approach.

NTPC Green Energy Ltd: Scaling Renewables, But Watch Execution

NTPC Green Energy commissioned the 220 MW Shajapur Solar Project, pushing NTPC Group’s installed capacity beyond 80 GW. It will also enter the FTSE Largecap segment per the June 2025 review.

Earnings rose sharply: Q4 net profit nearly tripled to ₹233.2 crore, driven by strong execution. New JVs and acquisitions such as Ayana Renewable Power are bolstering its renewable footprint.

Yet, the stock declined 6.5% in the last month. Coverage remains limited, with analysts split on outlook.

Analyst Views:

NHPC Ltd: Hydro Giant Goes Green with Renewables

NHPC delivered a 52% YoY jump in Q4 PAT and is expanding into renewables, with a deal to source 250 MW from ACME Solar. While the stock is down 1.9% this month, long-term returns are stellar: 164.9% over three years and 310.3% over five years.

Trading at a PE of 28.38 and PB of 1.9, the stock has strong backing from analysts, with targets between ₹92 and ₹117. The median one-year target implies further upside potential.

Analyst Views: