As you head for elections 2019, there are many sectors that will benefit. Most interestingly, it is not only Union Elections of 2019, but, also state elections that are to be held later this year. Some large states that are going to elections also include Madhya Pradesh and Rajasthan. Here are a few companies that could benefit due to elections.

Jagran Prakashan

Jagran Prakashan (JPL) is one stock that is likely to benefit, as elections means higher amounts spent on advertisements.

Jagran Prakashan, publishes the nation's largest read daily "Dainik Jagran". Apart from this it also owns Music Broadcast, which owns the "Radio City" radio network. This too is a leader in certain cities in the country.

Apart from this Jagran Prakashan also owns "Mid-day", which is the largest read evening newspaper in Mumbai. The good thing about JPL is that the management has constanly been rewarding shareholders with buyback and that trend may continue in the future. The digital business and the radio business have been seeing robust growth. What is also interesting is that the stock is not very far away from its 52-week low price.

JPL is trading at a one year forward p/e of just 10 times. The shares could be an interesting pick, as the company could benefit from higher advertisement spends due to Rajasthan and Madhya Pradesh elections in Dec and state elections later in 2019.

Ruchira Papers

Ruchira Papers may not be a direct beneficiary of the elections, but, we found the stock an interesting pick at the current levels, as the valuations offered comfort. Of course, elections may offer some uptick in demand for paper, but, that may not be colossal.

Interestingly, raw materials of the company come from the Earth. Locally sourced agricultural waste from sugarcane (Bagasse ), Wheat Straw (which used to be earlier burnt by farmers) and Wild grass create the fibers of our paper. The plant is equipped with modern power and water conserving features and has one of the lowest water consumption unit.

While it is always difficult to predict the EPS, we believe that going by the first quarter EPS of Rs 4.31, there is no reason why the company cannot finish the year with an EPS of Rs 16. At the current market price of Rs 137, the stock is barely traded at 8 times. Even if we would work on an assumption of a p/e of 12 times, the shares should trade at 192. A good stock to buy for the long term.