Can Budget 2024 turn stocks into multibaggers? History says, it’s possible
Budget 2023 injected fresh lives in infrastructure and cyclical stocks, some of whose share prices were languishing. If Finance Minister Nirmala Sitharaman’s Interim Budget speech is any indication, it’s reasonable to expect the good run in such stocks to continue.
Up until Finance Minister Nirmala Sitharaman’s Interim Budget 2024 speech, certain stocks had been giving moderate to steady returns. India is on the path to becoming the world’s third-largest economy by 2030, as per S&P Global Ratings. In her speech, Sitharaman announced an increase in outlay for infrastructure development by 11.1 percent; this amounts to 3.4 percent of the GDP, which is good news for infrastructure themed stocks. Here, we have shortlisted stocks that were almost flat in stock prices until Budget 2023 (February 1, 2023), but multiplied returns subsequently, partly due to the budget’s emphasis on India’s growth story and partly due to the stock market rise of 2023. The question is: Can the momentum- built further by the Interim Budget- continue for these stocks? Only stocks that are held by the mutual funds are considered for the study. The past three years’ price history (BSE) is taken into account for the comparison. Portfolio data as of December 2023. Source: ACEMF
2/18
GE T&D India Share price return since Budget 2023: 495% No. of mutual fund (MF) schemes holding the stock: 19 Sample of MF scheme that have invested: SBI Long Term Equity and Nippon India Multi Cap
3/18
Suzlon Energy Share price return since Budget 2023: 425% No. of mutual fund schemes holding the stock: 45 Sample of MF scheme that have invested: ITI Focused Equity and Invesco India Infrastructure
Inox Wind Share price return since Budget 2023: 416% No. of mutual fund schemes holding the stock: 25 Sample of MF scheme that have invested: Samco Active Momentum and ICICI Pru ESG Exclusionary Strategy
Neuland Laboratories Share price return since Budget 2023: 336% No. of mutual fund schemes holding the stock: 12 Sample of MF scheme that have invested: WOC ELSS Tax Saver and Bandhan Small Cap
6/18
REC Share price return since Budget 2023: 319% No. of mutual fund schemes holding the stock: 185 Sample of MF scheme that have invested: LIC MF Infra and JM Midcap
Newgen Software Technologies Share price return since Budget 2023: 309% No. of mutual fund schemes holding the stock: 14 Sample of MF scheme that have invested: Tata Focused Equity and HDFC Children's Gift Fund
8/18
Power Finance Corporation Share price return since Budget 2023: 309% No. of mutual fund schemes holding the stock: 214 Sample of MF scheme that have invested: Sundaram Fin Serv Opp and Groww Value
Nucleus Software Exports Share price return since Budget 2023: 301% No. of mutual fund schemes holding the stock: 12 Sample of MF scheme that have invested: Quant Teck and WOC Multi Cap
NBCC (India) Share price return since Budget 2023: 297% No. of mutual fund schemes holding the stock: 24 Sample of MF scheme that have invested: Taurus Ethical and Samco Active Momentum
11/18
Arvind Share price return since Budget 2023: 263% No. of mutual fund schemes holding the stock: 16 Sample of MF scheme that have invested: Quant Small Cap and Bandhan Small Cap
12/18
PTC India Financial Services Share price return since Budget 2023: 263% No. of mutual fund schemes holding the stock: 1 Sample of MF scheme that have invested: Bandhan Infrastructure
13/18
MSTC Share price return since Budget 2023: 252% No. of mutual fund schemes holding the stock: 3 Sample of MF scheme that have invested: Taurus Flexi Cap and Motilal Oswal Nifty Microcap 250 Index
Man InfraConstruction Share price return since Budget 2023: 221% No. of mutual fund schemes holding the stock: 4 Sample of MF scheme that have invested: Samco Active Momentum and Quant Small Cap
15/18
IFGL Refractories Share price return since Budget 2023: 216% No. of mutual fund schemes holding the stock: 4 Sample of MF scheme that have invested: DSP India T.I.G.E.R and HDFC Small Cap
Prestige Estates Projects Share price return since Budget 2023: 203% No. of mutual fund schemes holding the stock: 66 Sample of MF scheme that have invested: HDFC Housing Opp and Motilal Oswal Midcap
17/18
Kesoram Industries Share price return since Budget 2023: 197% No. of mutual fund schemes holding the stock: 9 Sample of MF scheme that have invested: Quant Value and Union Retirement
18/18
Kirloskar Brothers Share price return since Budget 2023: 185% No. of mutual fund schemes holding the stock: 8 Sample of MF scheme that have invested: Bandhan Infrastructure and Franklin India Opportunities
