Stocks To Buy From Consumer Durables After Positive Impact From Budget 2023

Prabhudas Lilladher (PL) has come-up with its latest report, post the Union Budget 2023-23. Here are some stocks that are its preferred picks from the consumer durables space after positive impact from the Union Budget.

Budget impact on consumer durable companies according to PL

Production Linked Incentive Scheme	Rs 16.6bn	Rs 58.45bn	Expected emphasis on manufacturing in India
Electrification Project	Rs 2.14bn	Rs 80.7bn	Boost demand for fan, lighting products and small appliances
Road Infrastructure	Rs 749.8bn	Rs 1077	Accelerate demand for cables & wires
Basic Custom duty on lens of camera module of mobile phone	2.5%	Nil	Reduce cost for manufacturing of mobile
Basic Custom duty on parts for manufacture of open cells of TV panels	5%	2.5%	Reduce cost for manufacturing TV panels
Basic Custom duty on electric kitchen chimney	7.5%	15%	Negatively impact importer of products
Basic Custom duty on heat coils for use in manufacture of electric kitchen chimney	20%	15%	Reduce cost for Kitchen chimney manufacturer

Beneficiaries from the above recommendations

According to Prabhudas Lilladher among the beneficiaries of such budget recommendations would be Havells, Dixon, Crompton Consumer, KEI Industires, Polycab and Voltas. However, the brokerage has recommended buying the stock of Havells India, which is the top preferred pick from the sector according to the brokerage.

Constructive on the markets

The brokerage remains remain constructive on the markets, although it says that the near term volatility remains high given that India has been amongst best performing markets last year and remain relatively expensive than many other competing markets. "Inflation seems to have peaked out and outlook on rural demand should improve overcoming couple of quarters. India is well placed given more inward looking economy with large population and emerging middle class, significantly lower inflation than most countries, surplus domestic food grain production, We remain overweight on Banks, Auto and IT services while we are underweight on Consumer, NBFC and Cement," the brokerage has said.