Top 10 Stocks to Watch for Budget 2024

Introduction


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.

Impact of Budget 2024 on Renewable Energy Stocks


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


  1. REC - Finances power projects from generation to distribution.
  2. PFC - Also finances a significant portion of renewable projects.
  3. IREDA - Focuses solely on renewable energy project financing.


Comparative Analysis

Top 10 Stocks to Watch for Budget 2024

Impact of Budget 2024 on Tourism Stocks


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


  1. ITDC - A government undertaking.
  2. EIH - Part of the Oberoi Group.
  3. Indian Hotels - A Tata Group company.


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.

Impact of Budget 2024 on Railway Stocks


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


  1. IRFC - Finances railway projects.


IRFC stands out due to its significant role in financing railway infrastructure projects, making it a stock to watch closely.

Impact of Budget 2024 on Defence Stocks


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.

Conclusion


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.