RITES, IREDA, BEML, Power Grid Corporation, SAIL, and NTPC Green Energy were among major gainers in PSU segment on Thursday. NSE Nifty closed the session 0.53 percent higher at 24,750. The markets could soon touch 25,000 levels but we can also expect selling at higher levels. Global market sentiment is optimistic but investors are also concerned about Trump administration tariffs and geopolitical risks. RITES and IREDA witnessed renewed buying interest and we can expect momentum to continue in these counters if markets remain positive on Friday.

RITES Ltd: Momentum Returns With Strategic Project Wins

After enduring a modest dip following the termination of a consultancy contract with the UP State Bridge Corporation, RITES Ltd rebounded sharply by 12% over two sessions as the company emerged as the lowest bidder (L1) for a significant urban infrastructure initiative with the Gujarat Urban Development Company. This project involves critical water supply and sewage treatment works—core to India’s municipal infrastructure agenda.

From a financial standpoint, EBITDA margins slipped to 19.9% in Q2 FY25, down from 23.6% YoY, drawing a cautious view from Motilal Oswal. However, the company’s robust Rs 6,581 crore order book and zero-debt balance sheet continue to be positive differentiators.

On the technical front, the stock has climbed to Rs 316.15 and is trading well above key moving averages, with RSI nearing overbought territory, signaling short-term bullish sentiment.

IREDA: Market Cautious Despite Renewable Energy Tailwinds

IREDA shares opened 3.65% higher at Rs 157 on April 8, 2025, driven by anticipation of strong Q4 results. Yet, intraday volatility saw the stock close down 2% at Rs 153.85, reflecting prevailing investor caution.

This conservative sentiment persists despite widespread optimism in India’s renewable energy sector. According to Trademint.in, IREDA’s price target for 2025 is estimated between Rs 264.25 and Rs 485, underpinned by strong institutional interest and government focus on green energy financing.

While recent broker ratings are unavailable, technical patterns suggest consolidation around the Rs 150–155 zone, with short-term movement likely to depend on earnings performance and shareholding disclosures.

BEML Ltd: Strong Earnings Ignite Rally and Optimism

BEML’s Q4 FY25 results proved to be a major inflection point, with shares rallying 22% over three days. Consolidated net profit rose 11.9% YoY to Rs 287.55 crore, while revenue surged to Rs 1,656.36 crore, driven by strong demand in mining and defense equipment.

Despite a 6% annual drop in revenues, the stock has appreciated 68% over the last quarter, highlighting its near-term strength. DailyBulls.in projects a 2025 target price of Rs 5,393.28, bolstered by expectations of higher infrastructure spending and defense procurement.

Investor interest is firmly anchored in BEML’s critical role in government-led infrastructure rollouts, placing the stock in a favorable long-term trajectory.

Power Grid Corporation: A Slow Climb Amid Sector Headwinds

Shares of Power Grid Corporation inched up by 1.22% to Rs 303.85 on May 21, 2025, despite a 5% decline over the past month. The modest gain was supported by news of an upcoming board meeting to deliberate on FY25 financials, generating renewed interest.

Nuvama and Shareprice-target.com remain confident in the stock’s long-term outlook. The latter forecasts a price range of Rs 200–Rs 440 for 2025, citing strong power transmission demand and the company’s extensive Rs 47,745 crore order book.

Valuation-wise, Nuvama sees potential upside with the stock trading at just 2.5x its estimated FY27 book value. While near-term price action remains subdued, Power Grid’s entrenched market position in the transmission sector continues to attract long-horizon investors.

SAIL: Strong Numbers But Mixed Sentiment Prevails

On June 4, 2025, shares of the Steel Authority of India Ltd (SAIL) held flat at Rs 131.79 despite posting a 26% YoY surge in Q4 net profit to Rs 1,251 crore. Revenue also rose 20% YoY to Rs 29,316 crore, propelled by solid demand from infrastructure and automotive sectors.

Still, analysts remain split. The Tax Heaven projects a conservative target range of Rs 120–Rs 140, supported by ongoing deleveraging and modernization initiatives. In contrast, Indmoney.com pegs a consensus target of Rs 118.23, implying a 9.2% downside risk, largely due to valuation concerns and margin pressures.

This divergence reflects investor anxiety over volatile global steel prices and rising input costs—factors that could limit upside despite strong quarterly earnings.

NTPC Green Energy: Clean Energy Commitment Boosts Sentiment

NTPC Green Energy Ltd shares rose 4% following news of a 1,000 MW solar PPA awarded by the Uttar Pradesh Power Corporation. The contract affirms NTPC Green’s position as a growing force in India’s solar sector.

Parent company NTPC reported a 27% YoY rise in consolidated PAT for Q4 FY25, much of it attributed to performance by its green subsidiary.

While Motilal Oswal has issued a ‘Neutral’ rating with a target price of Rs 383, citing execution delays, Nuvama remains bullish, valuing NTPC Green at a 30% discount to its listed parent and assigning a target of Rs 404.

That said, NTPC Green only managed to deliver 1.9 GW in FY25 against a target of 3 GW, signaling execution concerns that need to be addressed if it aims to compete aggressively with emerging private-sector green energy rivals.