The note indicates that PSUs are definitively on the comeback trail, marking a substantial improvement in their wealth creation performance compared to the last three studies.

About 26 PSUs collectively accounted for a significant 25% of the total wealth created between 2020 and 2025. The comeback was driven by several factors, including profitability and valuations.

Around seven of the 26 PSUs clocked a profit turnaround, with six of these being in the banking and finance sector, causing the aggregate sectoral net profit to surge about 274 times.

Zooming in on attractive calculations in the sector, the analyst noted that in 2020, many PSUs were trading at extremely attractive valuations. Out of these, six were trading at a trailing price-to-earnings or P/E ratio of less than five times.