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Last Updated : Jan 25, 2017 07:44 AM IST | Source: CNBC-TV18

Budget 2017: Experts pick 16 stocks that may benefit from the big event

In an exclusive CNBC-TV18 panel discussion, market experts SP Tulsian, Dipan Mehta, Daljeet Singh Kohli and Prakash Diwan listed out their top stock bets ahead of the Budget.


In a CNBC-TV18 panel discussion, market experts SP Tulsian, Dipan Mehta, IndiaNivesh's Daljeet Singh Kohli and Prakash Diwan listed out their top stock bets ahead of the Budget.

They believe these stocks are likely to benefit from the policy focus the Budget is likely to adopt. 


Analyst: SP Tulsian

GMDC

Price target: Rs 175
Outlook: 1 year


Gujarat-government owned GMDC (Gujarat Mineral Development Corporation) has a 250 megawatt (MW) thermal power plant, 200 MW wind energy plant and 5 MW solar plant. Its plant load factors (65 percent for thermal and 25 percent for wind) is improving.

The company is among the few companies in the power generation that are debt free and is a consistent dividend payer. It has cash and cash equivalent equal to market capitalisation (about Rs 3,700 crore).

Its stake in Gujarat Alkalies & Chemicals (GACL) and Gujarat State Fertilizers & Chemicals (GSFC) is about Rs 600 crore.

PTC India 
Price target: Rs 125
Outlook: 1 year

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The company is a pioneer in power trading. The company is going to benefit from the rise in power demand. It has a cash and investment of Rs 2,800 crore, and owns 60 percent stake in PTC India Financial Services. It is promoted by NTPC, NHPC, Power Grid and PFC.

Associated Stone
Price target: Rs 40
Outlook: 1 year


The company has the largest quarry of Kota Stones in the world, spread over 10 square kilometres. It has a reserve for the next 60-70 years. It is likely to benefit from the government's thrust on low cost housing. Promoters own about 70 percent stake in the company.

Dalmia Bharat Sugar
Price target: Rs 250
Outlook: 1 year


Promoter stake of 75 percent. The company has a presence in Maharashtra and UP. In UP, it runs 3 mills, and 2 mills in Maharashtra. It is among the 10 largest sugar maker in the country. It is likely to benefit from the rise in sugar prices.

Analyst: Dipan Mehta

Alphageo
Outlook: 3-4 years


Alphageo provides seismic survey services and has big order book from ONGC and other oil exploration companies. He expects huge growth to come in over the next 3-4 years with execution to start picking up.

VA Tech Wabag
Outlook: 3-4 years


It is a leading player in water treatment and desalination. The company gets annuity income for the maintenance of the projects and follows a very asset light model. It has a global footprint.

GMM Pfaudler


A niche MNC company engaged in the manufacturing of glass-lined equipment. It has a large order from its parent company. It has a steady revenue stream and repeat orders for repair and maintenance from pharma companies.

UFO Moviez


The company has a unique model for film exhibition. The advertising revenue is growing at a good pace and major chunk of the advertising is coming from government. The company is providing solutions in tier II and tier III towns for the local advertising. The company follows asset light model and providing solutions to theatre owners.

Analyst: Prakash Diwan

Greaves Cotton

Price target: Rs 199
Outlook: 15 months


The company makes single and dual cylinder engines which are used in three-wheelers and has 80-90 percent market share in sub-1 ton category. The company recently forayed into mechanised farm product manufacturing tillers. The company has a strong cash flow, good balance sheet and negligible debt.

Ion Exchange
Price target: Rs 444
Outlook: 12 months


The company is a leader in water purification. It has a won a desalination project in Sri Lanka. Margins are improving and has got approval from USFDA for pharma resin compound manufacturing.

Universal Cables

Price target: Rs 133
Outlook: 12 months


It is a leading player in cable business, part of MP Birla Group. The company is a pioneer in very high voltage cables. It has recently forayed into EPC business which has improved the margins.

IG Petro
Price target: Rs 333
Outlook: 12 months


The company is the largest manufacturer of Pthalic Anhydride. It has built huge capacities at lower costs and is likely to benefit from the slowdown of chemical production in China. The company is trading at a discount versus peers and is likely to get re-rated.

Analyst: Daljeet Singh Kohli

Coromandel International
Price target: Rs 360


Around 84 percent of Coromandel International's top line comes from fertilisers and 16 percent comes from agrochemical and pesticides. He expect the fertiliser business and agrochemical to revive. He believes the company’s valuation to improve in 2-3 years.

BEL
Price target: Rs 1,900


A state-owned company caters to the defence and aerospace space. It is likely to benefit from favourable defence capex. Strong visibility of order book for the next 5 years and higher government spending on defence could benefit the stock.

Ashiana Housing
Price target: Rs 183

The company is focussed on tier II and tier III towns and in affordable housing. It is likely to benefit from the government’s impetus on housing.

Lakshmi Vilas Bank
Price target: Rs 165


The bank is likely to benefit from the credit demand from SME and MSME. The bank is mainly concentrated in Tamil Nadu. The loan book of the bank comprises 40 percent from corporate and 25 percent comes from SME and retail. The bank has hired experienced top management people from HDFC Bank and Axis Bank. The bank has undertaken a rebranding exercise and has shifted focus to the retail segment.



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First Published on Jan 24, 2017 09:27 am
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