INSUBCONTINENT EXCLUSIVE:
budget on Friday provided an impetus to the rural sector and as well as the middle class
The government announced a Rs 75,000-crore income support package for farmers and raised zero income tax level to Rs 5 lakh, from Rs 2.5
lakh earlier, which bode well for these sectors, said analysts
Dabur India, ITC, Jubilant FoodWorks, Hindustan Unilever, LIC Housing Finance, Crompton Greaves Consumer Electricals, TTK Prestige and
Oberoi Realty are top picks of brokerages as they are seen benefiting from the measures announced in the interim budget.
DABUR INDIACMP: Rs
451.8
Chg in last 1 Year: 29.2%
Dabur has nearly 50% of its domestic sales from India, and a rural push in the budget is expected to
trickle down to rural-focused companies
2.0%
There was no change in tobacco taxation in the budget which was a relief for ITC although the budget has become less relevant for ITC
as the GST council takes calls on taxation change, said CLSA
We see cigarette demand going up which is bulk of the cash flow for the company
Sofat sees the stock rising to Rs 335.
JUBILANT FOODWORKSCMP: Rs 1,354.85
Chg in last 1 Year: 32.0%
Income tax benefits are expected to
boost consumption which in turn is likely to benefit companies in the quickservice restaurants segment
said Abhimanyu Sofat of IIFL
He expects the stock to rise to Rs 1,550 levels
HSBC sees the QSR space as a long-term opportunity and believes that Jubilant is well-positioned
to be the key beneficiary of a rural demand recovery, riding its strong brand equity in entry or commuter segments and high rural exposure,
Deutsche Bank said in a recent report that volume growth of Hero MotoCorp could recover going forward driven by improvement in motorcycle
growth due to a combination of rural demand and the waning impact of insurance-related price hikes
Volume growth is likely to be aided by better scooter volumes, said Deutsche.
HINDUSTAN UNILEVERCMP: Rs 1,796.25
Chg in last 1 Year:
31.0%
The FMCG major has a high rural exposure
parentage and credit rating, which is crucial in times of liquidity stress, said Yogesh Mehta, VP, Motilal Oswal Financial Services
Chg in last 1 Year13.08%
The Mumbai-focused premium real estate developer has the strongest balance sheet among real estate companies, said
Yogesh Mehta of Motilal Oswal
We believe such financial strength offers the company with an opportunity for value-accretive land acquisitions to drive growth potential
boosting rural income should provide a boost to small appliances and light electrical companies, like Crompton Consumer
extensions remain key for the company to drive sustainable growth going ahead given that market-share-led gains in its core categories
free liquefied petroleum gas (LPG) connections to 80 million households should be positive for TTK Prestige, said analysts
