From Oil India to RVNL, LKP Securities lists top PSU stocks with over 40% potential upside in 3-6 months

Rail Vikas Nigam: The brokerage recommends buying the stock in the range of ₹122-127 for targets of ₹160 and ₹185, indicating a potential upside of 46%. RVNL is the executing arm of Railways and is now in operation for almost two decades with annual revenues of ₹20,000 crore. Its massive order book of ₹56,000 crore consists of a ₹37,000 crore share from Railways. It also recently completed its OFS successfully. RVNL has been consolidating following a sharp upmove on the weekly timeframe which may end in another move on the upside. The critical moving average is sitting well below the current price. The previous consolidation broke into a sharp upmove. This time also, a sharp upmove is expected unless it falls below 115. On the higher end, it might move towards 160/185.

NBCC: The brokerage recommends buying the stock in the range of ₹48-49 for targets of ₹63 and ₹70, indicating a potential upside of 43%. NBCC is a Navratna CPSE operating in Real Estate, EPC & Project Management Consultancy. NBCC has recently marked multiple swing high breakouts on the weekly chart, indicating a rise in optimism. This is complemented by consistent trading above the significant moving average, underlining its bullish stance. The positive crossover in the weekly RSI reinforces the short-term bullish momentum. In the immediate future, the stock is anticipated to maintain its positive trajectory, with a potential upper range of 63/70.

Oil India: The brokerage recommends buying the stock in the range of ₹273-280 for targets of ₹350 and ₹400, indicating a potential upside of 43%. Compelling Valuations versus Global E&P entities on a PE basis coupled with an attractive dividend yield of 7.5% makes the ₹40,000 crore Oil India an attractive bet. Oil India has given a consolidation breakout on the weekly chart, suggesting a rise in optimism. Sustained trading above the crucial moving average reinforces its strength. A positive crossover in the weekly RSI indicates a bullish momentum in the near future. Resistance levels stand at 350/400.

Tamil Nadu Newsprint & Paper: The brokerage recommends buying the stock in the range of ₹220-225 for targets of ₹300 and ₹320, indicating a potential upside of 42%. TNPL is the third largest paper producer in India with a capacity of 6 lakh mtpa and pulping capacity of 1200 tpd. Softening coal prices should in our view boost cash flows this fiscal if the first quarter performance is an indicator. Compelling valuations should interest any investor looking for growth at a very reasonable price. TNPL has given a consolidation breakout. Besides, it formed a double bottom on the weekly chart. RSI is in a bullish crossover on the weekly timeframe. The trend is likely to remain positive over the short term.

National Aluminium Company: The brokerage recommends buying the stock in the range of ₹90-92 for targets of ₹120 and ₹130, indicating a potential upside of 41%. The Navratna aluminium major with annual revenues of ₹14,500 crore is also the lowest-cost producer of Bauxite. The fully integrated PSU major with mines and coal linkages has grown through strategic partnerships and also has a dividend yield of 4%. Having emerged from an extended consolidation on the weekly chart, the stock displays a breakout signal. Sustained trading above the crucial moving average reinforces its strength. A positive crossover in the weekly RSI indicates a bullish momentum in the near future. Resistance levels stand at 120/130, while support is established at 87/84.

NHPC: The brokerage recommends buying the stock in the range of ₹50-51 for targets of ₹62 and ₹72, indicating a potential upside of 41%. With a presence across 14 states, NHPC is executing India's largest Hydro Project at Subansiri and is taking rapid strides into renewables. It offers growth at a reasonable price (GARP) and its compelling valuations and dividend yield makes it a good investment bet. The stock has been moving with a higher top-higher-bottom formation on the weekly chart. Besides, the price has been trading above the significant moving average, underlining its bullish stance. The positive crossover in the weekly RSI reinforces the short-term bullish momentum. In the immediate future, the stock is anticipated to maintain its positive trajectory, with a potential upper range of 62/72.