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.