Ashok Leyland
- The only listed pure play commercial vehicle (CV) player is expected to be a key beneficiary of the 33 per cent increase on capex
- It is expected to benefit from the continuation of the on-going vehicle scrapping policy, both for the central government and support for states in replacing old vehicles
- A 36 per cent increase in outlay for roads are expected to help commercial vehicle companies like Ashok Leyland, as a better road network will cut logistics costs
- Ancillary real estate segments such as plywood could be a major gainer from the 66 per cent increase in outlay for PM Awaas Yojana
- Higher tax exemption limits, increased rebate and lower number of slabs are incentives which could lead to higher spends on plywood products
- Decision to set up Urban Infrastructure Development Fund and allocate Rs 10,000 crore annually under the scheme is positive for the company
- Increase in consumption from urban/rural schemes and a better outlook for the sector, going ahead, makes it the highest potential gainer from the Budget picks
- Analysts’ target prices suggest an upside of 43 per cent over the next one year
- The Budget lays strong emphasis on improving and expanding India’s health care system, which will further expand the domestic market for pharma and health care products
- A new scheme to promote R&D in the pharma sector was also announced
- These measures are expected to boost the growth of Cipla, one of the top pharma companies in the domestic market
- The stock has outperformed in the last 12 months, and analysts see a further 15 per cent upside over the next one year
- The budget proposals providing income tax relief to individuals are expected to boost private consumption
- HUL being the market leader in personal and home care segments, is likely to the biggest gainer in the FMCG segment
- The company has been an outperformer in FY23 and analysts expect it to maintain the momentum in FY24 as well
- Analysts also expect HUL to gain from premiumisation
- HUL’s net sales was up 16.2 per cent YoY in Q3 of FY23, while its net profit was up 12.6 per cent YoY
- The stock was up 2.5 per cent on Thursday but analysts see a further 11 per cent upside over the next 12-months
- The government has taken up promotion of tourism on mission mode, with active participation of states, and public-private partnerships. This augurs well for Indian Hotels in the medium to long term, says SBI Securities
- Anand Rathi Research notes that a record outlay for railways and steps to promote civil aviation are positive for the company, which is present across the value, mid and luxury hotel segments
- Analysts’ target prices suggest an upside of 17 per cent over the next one year
- Brokerages say infrastructure accounts for 60 per cent of steel demand in India, followed by construction at 20 per cent
- Given the Budget’s focus on infrastructure and housing, the steel sector could reap higher domestic volumes in FY24
- Steel producers will benefit from continued exemption from basic customs duty on raw materials for manufacture of cold rolled steel, ferrous scrap and nickel cathode
- JSPL has been a top performer and is up 40 per cent in the last 12 months. Brokerages see another 12 per cent upside in the stock over the next one year
- Being a market leader, L&T is expected to be the prime beneficiary of the Budget’s push on capital expenditure and infra
- Analysts expect a big jump in L&T’s order book in FY24, thanks to the big increase in allocation on public capex in the budget
- L&T’s order inflow in Q3 FY23 was up 20.6 per cent year on year (YoY), driven by order wins across multiple segments
- Analysts expect 18-20 per cent CAGR in L&T’s engineering & construction division over FY22-25 period
- Analysts see an upside of 12 per cent from current levels over the next one year
- India’s largest CV maker is a major gainer from the move to sharply increase infra spends boosting demand from manufacturing, mining and construction
- Customs duty exemption on import of capital goods for making lithium ion cells will lower battery costs, making EVs more affordable and boost green mobility; Tata Motors will be a key beneficiary, says Kotak Securities
- Increased outlay for roads and expansion of the road network could boost demand for trucks and buses
- Analysts expect cement demand to improve going forward, led by the government’s thrust on infra spending and a pick-up in demand from the urban real estate sector
- UltraTech Cement, India’s top cement maker, is expected to be a key beneficiary of the Budget’s big push to public spending on infrastructure
- Analysts say that investing in top cement and building material manufacturers such as UltraTech is a good way to benefit from Budget’s capex theme
- ICICI Bank is the top pick by brokerages post-Budget, and the stock has been among the top gainers in Bank Nifty in the last two days
- Brokerages expect ICICI Bank to be a top beneficiary of the budget’s push on infrastructure and capex, which is positive for bank credit
- Faster growth in bank credit will help ICICI Bank maintain the growth and earnings momentum that it has displayed in FY23
- In Q3 of FY23, ICICI Bank’s gross interest income was up 29.1 per cent YoY, while net profit was up 34.2 per cent YoY
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