ITC, L&TandSBIAmong Top Picks After Budget
Mumbai: Benchmark indices have recouped all their losses inflicted by demonetisation, but several stocks that did well during most of the 2016 arestrugglingtoregaintheirmomentum. Investors thought the Budget last week would be the next impetus, but the government chose to play it safe in terms of big bang announcements. ET spoke to brokerages for their top picks after the Budget:
₹ ₹ The company’s key markets are on the verge of turnaround and are expected to grow at 8%. Key driver of this demand will be Andhra Pradesh and Telangana.
₹ ₹ SBI is poised to remain major beneficiary of demonetisation. With higher use of digital mode of transaction, gradual improvement in operating efficiency, we expect PAT growth at 45% CAGR in FY 2016-18E.
₹ ₹ As 50 % of borrowers are government employees, the company expects significant growth as a result of seventh Pay Commission disbursement.
₹ ₹ Strong growth seen in domestic business due to its leadership in acute therapeutic segment.
₹ It has seen improved profitability backed by turnaround in E&P segment; strong order book lends earnings visibility. ₹ ₹ The company will benefit from the government’s focus on agriculture.
₹ ₹ Siemens has an asset-light business model in rolling stocks. Thereby, increasing the prospects of new orders with high profitability.
₹ ₹ It has a cement plant capacity of 7 mtpa in the region where the government has announced low-cost housing. Also, affordable housing getting an infrastructure status will benefit the firm.