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In light of the recent budget announcements for 2024, several stocks have come into focus. This blog aims to provide insights into these stocks and how they may benefit from the budget's emphasis on various sectors. Remember, this analysis is for informational purposes only and not a recommendation for trading. Always conduct your own research before making investment decisions.
Renewables in Focus
The budget highlighted sustainable development, committing to Net Zero by 2070. Key initiatives include rooftop solarization, e-buses, and increasing non-fossil fuel capacity.
Key Stocks in Renewable Energy
Comparative Analysis
Tourism Sector Emphasis
The budget promotes joint efforts between the central and state governments to develop iconic tourist centers, provide long-term interest-free loans for development, and enhance tourism infrastructure.
Key Stocks in Tourism
Comparative Analysis
Metric | REC | PFC | IREDA |
---|---|---|---|
Price-to-Earnings (PE) | 10 | 8 | 60 |
Return on Capital Employed (ROCE) | 9.14% | 9.08% | 8.17% |
Sales Growth | 16% | 9.46% | 21.8% |
Metric | ITDC | EIH | Indian Hotels |
---|---|---|---|
Market Cap | Small Cap | Mid Cap | Large Cap |
Stock PE | 98 | 46 | 61 |
Operating Profit Margin (OPM) | Lower | Higher | Higher |
Despite IREDA's higher focus on renewables, PFC has a larger share in financing this sector, making all three worth watching.
Indian Hotels has recently reported all-time high sales and operating profit margins, indicating robust performance.
Railways Modernization
The budget includes plans to renew 40,000 bogies to Vande Bharat standards, which will benefit companies involved in manufacturing wagons and financing these projects.
Key Stock in Railways
IRFC stands out due to its significant role in financing railway infrastructure projects, making it a stock to watch closely.
Strengthening Defense Sector
The budget introduces new schemes for enhancing deep tech technology for defense and promoting Atmanirbhar Bharat (self-reliant India).
Key Stocks in Defense
HAL (Hindustan Aeronautics Limited) - Manufactures and maintains aircraft and helicopters.
BEL (Bharat Electronics Limited) - Another key player in the defense sector.
HAL Analysis
Metric | Value |
---|---|
Sales | All-time high |
Operating Profit Margin (OPM) | ~24% |
Profit Before Tax (PBT) | 6,805 crores |
HAL's strong financial performance and crucial role in defense make it a noteworthy stock.
We've discussed eight stocks that could benefit from the 2024 budget: REC, PFC, IREDA, ITDC, EIH, Indian Hotels, IRFC, and HAL. Now, it's your turn! Share your top two budget picks in the comments below, along with your analysis. The best analysis will be pinned!
Stay informed, invest wisely, and let's grow together. Jai Hind!
Disclaimer: I am not a SEBI-registered advisor. The information provided in this blog is for educational purposes only and should not be considered as financial advice. Always perform your own analysis and consult with a professional financial advisor before making any investment decisions.
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