Five key stocks expected to benefit from the Budget

Finance Minister Nirmala Sitharaman

Finance Minister Nirmala Sitharaman made a number of announcements on agriculture, generating employment, and reduction in import duties for gold, and silver, among other things. Here are five stocks which market experts believe are likely to benefit from the announcements.

Godrej Agrovet
As much as Rs 1.52 lakh crore has been set aside for agriculture and allied sectors – an increase from the Rs 1.27 lakh crore earmarked in the Interim Budget. Further, Sitharaman announced financial support for setting up a network of Nucleus Breeding Centers for Shrimp Broodstocks with the basic customs duty on certain broodstock, polychaete worms, shrimp, and fish feed reduced to 5 percent. Customs duties have also been exempted on various inputs for manufacturing shrimp and fish feed. These factors are expected to benefit agriculture-based stocks like Godrej Agrovet, said Saurabh Mukherjea in a conversation with Moneycontrol.

Godrej Agrovet is involved in the business of animal feed for cattle and shrimp. It also sells vegetable oil, crop protection products, dairy, and poultry. Marcellus, in a note to its shareholders, said, “We expect a much better outlook for Godrej Agrovet's earnings going forward, driven by favorable government policies such as the National Mission on Edible Oils – Oil Palms (NMEO-OP) and Pradhan Mantri Matsya Sampada Yojana, which are likely to impact the earnings of the vegetable oils and fish feed businesses respectively.”

Titan Company
In order to enhance domestic value addition in gold and precious metal jewellery, the customs duty on gold and silver was reduced to 6 percent from 15 percent earlier. The reduction in customs duty will benefit players like Titan Company, where almost 87 percent of its product category is jewellery. Even though there is high competition in the jewellery segment, Titan Company is better placed than others because its new formats like Caratlane, Mia and Zoya will help sustain above teen growth in coming years, said Amnish Agarwal, head of research at Prabhudas Lilladher.

Teamlease Services
The FM has announced that one crore youth will get internships in top Indian companies in the next five years. This move is set to benefit companies like Teamlease Services, which is an HR consultant, said Amit Doshi, fund manager at Care Portfolio. The company looks into recruitment, on-boarding, and operations of professionals.

Borosil Renewables

The government has increased the customs duty on solar glass in order to protect domestic solar glass manufacturers. Further, duties on certain additional capital goods used in the manufacture of solar cells and modules have been waived off. This announcement is expected to directly benefit players like Borosil Renewables, which is involved in the manufacturing of solar glass, said Agarwal.

Adani Wilmar
To achieve self-sufficiency in pulses and oilseeds, the government will strengthen their production, storage, and marketing, said the FM in her budget speech. She mentioned that a strategy is being put in place to achieve 'atmanirbharta' for oilseeds such as mustard, groundnut, sesame, soybean, and sunflower. Adani Wilmar will benefit from this as it manufactures soybean oil, palm oil, sunflower oil, rice bran oil, mustard oil, groundnut oil, and others, said Divam Sharma of Green Portfolio.

Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.​​​