These Stocks are Expected to Gain From Budget Moves
timesinternet.in ETMarkets.com: The domestic equity indices zoomed past key resistance levels on Wednesday after the Budget 2017. Going by the buzz on Dalal Street, here is a list of stocks that most analysts feel will benefit incrementally from the Budget.
“Key beneficiaries will be players that have a rural presence and SME target base, such as, MFIs — Bharat Financial and SFBs such as Ujjivan, Equitas, Capital First and companies that have high rur a l p r e s e n c e s u c h a s M& M Financial Services.”
The Budget showed sustained government focus on infrastructure development and also better utilisation of agriculture and rural subsidies, which can act as catalyst to boost consumption demand. “There were no major announcements for the chemicals sector and for DBT in fertilisers. We continue to like PI Industries for a target of ₹ 800. Bayer and Dhanuka, which are not rated are the other plays on the continuous improvement of the sector,” Ambit Capital said in a report.
Edelweiss Securities has upgraded shares of ITC to ‘buy’ from ‘hold’ on the government’s soft stance on excise duty hikes in cigarettes for two consecutive Budgets. HUL benefits directly from Unilever’s global or regional procurement and ITC has a very strong network for direct procurement from farmers.
The increased allocation to rural low-cost housing to ₹ 23,000 crore from ₹ 16,000 crore in FY17 is likely to drive a 2% increase in cement demand, Ambit Capital said.
“We prefer regional, cost-efficient players like Dalmia Bharat and Orient given the inexpensive valuation,” said the Ambit report. HIGHS & LOWS