The Union Budget 2025, presented by Finance Minister Nirmala Sitharaman, has set the stage for economic revival and increased consumption, with a strong focus on mid and small-cap stocks. Brokerages have identified several companies poised to benefit from the government’s initiatives, offering significant upside potential for investors. Here’s a breakdown of the top stock picks and their analysis;more such top picks to follow after due research.
1. Exide Industries (CMP: Rs 374 | Target: Rs 448 | Upside: 20%)
Exide Industries, a leader in the automotive battery segment, is expected to benefit from the government’s push for electric vehicles (EVs) and energy storage solutions. The company’s strong market presence, coupled with its investments in advanced battery technologies, positions it well to capitalize on the growing demand for EVs and renewable energy storage systems.
2. Brigade Enterprises (CMP: Rs 1,163 | Target: Rs 1,335 | Upside: 15%)
Brigade Enterprises, a prominent real estate player, stands to gain from the budget’s emphasis on infrastructure development and affordable housing. The company’s diversified portfolio in residential, commercial, and retail spaces, along with its strong execution capabilities, makes it a solid pick in the real estate sector.
3. Crompton Greaves Consumer Electric (CMP: Rs 369 | Target: Rs 536 | Upside: 45%)
Crompton Greaves is a key player in the consumer electrical goods segment, and the budget’s focus on boosting rural electrification and consumer spending bodes well for the company. Its innovative product portfolio and strong distribution network are likely to drive growth, making it a top pick with the highest upside potential.
4.Havells India (CMP: Rs 1,660 | Target: Rs 1,890 | Upside: 14%
Havells India, a leading electrical equipment manufacturer, is expected to benefit from increased infrastructure spending and the government’s push for smart cities. The company’s strong brand equity, coupled with its focus on energy-efficient products, positions it well to capitalize on the growing demand for electrical and lighting solutions.
5. Kaynes Technology (CMP: Rs 4,603 | Target: Rs 5,528 | Upside: 20%)
Kaynes Technology, a key player in the electronics manufacturing services (EMS) sector, is well-positioned to benefit from the government’s focus on domestic manufacturing and the Production Linked Incentive (PLI) scheme. The company’s expertise in high-precision manufacturing and its strong client base in the automotive, industrial, and consumer electronics sectors make it a promising pick.
Analysis:
The Union Budget 2025’s focus on economic revival, infrastructure development, and increased consumption has created a favorable environment for mid and small-cap stocks. Companies like Exide Industries, Kaynes Technology, and Crompton Greaves are expected to benefit from sector-specific tailwinds, such as the EV revolution, domestic manufacturing, and rural electrification. Investors should consider these stocks for their growth potential, strong fundamentals, and alignment with government policies. However, it is essential to monitor market conditions and company performance closely to maximize returns.
Conclusion:
The Union Budget 2025 has laid the foundation for growth in key sectors, and these stock picks offer attractive upside potential. Investors with a medium to long-term horizon may find these recommendations aligned with the government’s vision for economic recovery and growth.
Indirect Tax India
Disclaimer: Content above reflect person views of Indirect Tax India research ; For investment purposes consult your financial advisor only.
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