Billionaire

Budget and our thoughts – A very practical and path oriented budget

K. V. Ramaswamy, Vijay S. Choksi & C.S. Gourinadh


We split the budget into 3 parts:

1. Income (based on 8-9% GDP growth)

2. Expenditure (based on higher consumption)

3.  Balancing (Divestment, FDI, Banking momentum & Export drive) Broadly he touched upon some sectors like:

BENEFITTED:

• Infrastructure
• Power
• Pharma
• Roads
• Railways
• Education  & IT
• Banking & Pensions
• Textiles

AFFECTED:

• Metals
• Telecom

&
• Oil & Gas including Exploration

Proposals & 3 Stocks /Sector which may benefit: ( Time Horizons are over 1 year)

INFRASTRUCTURE:

Stock Name

CMP

EPS

P/E (Times)

Target

BHEL

2176

64

34

2600

L&T

1,430

46

31

1900

Punj LLoyd

216

——

——

270


POWER & DISTRIBIUTION:

Stock Name

CMP

EPS

P/E (Times)

Target

JP Hydro

78

4

22

120

Reliance Power

164

——

——

198

Neyveli Lignite

127

9

14

150


EDUCATION & IT:

Stock Name

CMP

EPS

P/E (Times)

Target

Educomp

4009

80

50

4500

Aptech

148

5

28

198

NIIT

56

3

19

90


BANKING & PENSION:

Stock Name

CMP

EPS

P/E (Times)

Target

Yes Bank

140

10

14

180

SBI

1634

144

11

1950

Kotak Bank

600

19

32

700


ROADS & RAILWAYS:

 Stock Name

CMP

EPS

P/E (Times)

Target

 HCC

103

5

21

140

 SIMPLEX INFRA

386

26

14

450

 IVRCL

336

17

19

390


PHARMA:

 Stock Name

CMP

EPS

P/E (Times)

Target

 Glenmark Pharma

220

12

18

290

 Divi’s Labs

1057

64

17

1590

 Sun Pharma

1215

88

14

1500


METALS: (indirectly benefitted by infra spending)

Stock Name

CMP

EPS

P/E (Times)

Target

 TISCO

380

162

2

600

 SAIL

161

16

10

200

 SESA GOA

210

25

8

250

HAPPY INVESTING AND IN CASE YOU WOULD LIKE TO GET YOUR FINANCIAL PLAN & PORTFOLIO MANAGED PROFESSIONALY,  PLS CALL US AT 022-42379900.