New Delhi, Feb. 13 -- Stocks of public sector undertakings that have enjoyed a phenomenal rally since the pandemic now face a reality check. These shares have toppled 21-82% from their all-time peaks, raising concerns about whether the party is over.

While PSU stocks shave had their share of struggles, their fundamentals have seen a major transformation. Once bogged down by balance sheet stress and sluggish growth, many government-owned companies now stand on a firmer footing, market participants said.

The broader view? The fall isn't a setback-it's a window for investors to accumulate quality stocks with long-term growth potential.

Ranju Rajan, head of managed accounts at Axis Securities PMS, said there is a potential opportunity in s...