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STOCKS AND COMPANY IMPACT ANALYSIS

Union Budget 2023 is the last full-year Budget before General Elections in 2024, and hence it is expected to be a growth-oriented one with primary focus on job creation, investment-driven growth, and infrastructure development. IIFL Securities believes that Finance Minister Sitharaman may announce more subsidies to customers to boost EV production which may lead to an increase in demand for batteries. Hence, Exide Industries is among top picks. Power sector may also be benefited, and the government is expected to increase on cigarettes, which make NTPC and ITC stocks attractive from near-term perspective. Duty on luxury watches, ornaments, jewellery is likely to benefit Titan, while subsidy and development of the agri sector may directly impact Chambal Fertilizers stock. The central government has been pushing use of technology in agri sector, and it is expected to announce  subsidy and planning on technology usage like usage of drones, usage of machinery to increase agri production, which may boost Godrej agrovet stock.

By IIFL Securities Ltd

Policy on fertiliser subsidy always be a major factor for fertiliser stocks. We are again expecting subsidy and development of the agri sector to directly impact on fertiliser stocks. Chambal Fertilizer may rise in this budget. It may test 350 to 380 levels, while stop loss can be put at 275 levels.
CMP 291.80
52 Week Range H/L 516.00-260.80
Market Cap (Cr) 12113.73

Cipla Ltd.

12-month target
1150-1200
To increase pharma industries, and to build more strength in pharma, expecting some good policy announcement for pharma. We are choosing cipla from the pharma category which gets impacted directly. Cipla may test 1150 to 1200 levels while stop loss can be put at 990 levels.
CMP 1047.25
52 Week Range H/L 1185.25-888.15
Market Cap (Cr) 84512.01

DLF Ltd.

12-month target
430-450
The infrastructure and real estate sector got a major push with the Smart Cities Mission. Since the mission worked on factors like better infrastructure, better waste and water management, integrated traffic management and safer cities with use of technology, the Tier II cities in India got upgraded. DLF looks as a potential stock, it may test 430 to 450 levels, while stop loss can be put on 330 levels.
CMP 355.95
52 Week Range H/L 418.50-294.70
Market Cap (Cr) 88108.72

Exide Industries Ltd.

12-month target
200-210
To boost the production of EV we are expecting more subsidies to the customers so the demand of batteries may be increased. So Exide Industries is one of the stocks in this sector. We are expecting potential in this stock. it may test 210 to 200 levels while stop loss can be put on 170 levels.
CMP 183.20
52 Week Range H/L 194.20-130.25
Market Cap (Cr) 15559.25

Godrej Agrovet Ltd.

12-month target
530-550
The usage of technology is increasing day by day. Subsidy and planning on technology usage like usage of drones, usage of machinery to increase agri production will positively impact Agri Tech Stocks such as Godrej Agrovet. It seems it may test 530 to 550 levels while stop loss may put it at 390 levels.
CMP 453.40
52 Week Range H/L 593.00-441.00
Market Cap (Cr) 8728.91

ITC Ltd.

12-month target
360-380
ITC is looking good at this level. Expectation of increased taxes on cigarettes may be supportive for the ITC. We are expecting that ITC may test 360 to 380 levels, stop loss can be 310 levels.
CMP 346.00
52 Week Range H/L 361.45-207.00
Market Cap (Cr) 429090.43

National Aluminium Company Ltd.

12-month target
100-120
The expectation of infrastructure development in 2 and 3 tier cities increases demand of aluminium which may impact on National aluminium prices. It may test 100 to 120 levels.
CMP 82.30
52 Week Range H/L 132.70-66.95
Market Cap (Cr) 15106.30

NTPC Ltd.

12-month target
190-200
In every budget we saw some regulations and discussion on increased capacity to increase power generation so this would be a positive point for power companies. so we are expecting potential upside in NTPC. It may test 190 to 200 levels while stop loss can be put on at 143 levels.
CMP 166.30
52 Week Range H/L 182.95-123.65
Market Cap (Cr) 161255.56

Rail Vikas Nigam Ltd.

12-month target
100-120
Railways always become a hot topic in the budgets. This year, the policy framework on development on railways may impact directly on the RVNL. We are expecting a potential upside in RVNL. It may test 100 to 120 levels, while stop loss can be put at 58 levels.
CMP 72.90
52 Week Range H/L 84.10-29.00
Market Cap (Cr) 15220.65

Titan Company Ltd.

12-month target
2450-2500
Duty on luxury watches, ornaments, jewellery may have a direct impact on luxury products business. So Titan may be affected directly. Expecting upside potential move in Titan, it may test 2450 to 2500 levels while stop loss can be put on at 2280 levels.
CMP 2331.25
52 Week Range H/L 2791.00-1825.05
Market Cap (Cr) 207009.54
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Disclaimer by IIFL Securities

The views expressed in this document reflect personal views of the Analyst about the subject, company or companies and its or their securities and do not necessarily reflect those of IIFL Securities. The research analyst neither has any financial interest in the subject, company(ies) nor owns 1% or more of the Equity securities of the said company(ies) during twelve months preceding the date of publication of the report. Further, the analyst has not served as an officer, director or employee of the subject or company, nor any part of the analyst’s compensation was, is or will be, directly or indirectly related to specific recommendations or views expressed in this document. The Research analyst also does not have any other material conflict of interest at the time of publication of the report.