Stock Pick for Budget 2022: L&T, Tata Power among 4 stocks that may benefit from government announcements, says Siddharth Sedani
In conversation with Zee Business Managing Editor Anil Singhvi, Siddharth Sedani of Anand Rathi Shares & Stock Brokers said the government is likely to focus on infrastructure and asset monetisation in Union Budget
In conversation with Zee Business Managing Editor Anil Singhvi, Siddharth Sedani of Anand Rathi Shares & Stock Brokers said the government is likely to focus on infrastructure and asset monetisation in Union Budget. He said the government is likely to give a push to rural economy, agriculture and job creation. Also, schemes in line with Atmanirbhar Bharat and Production-linked schemes can be introduced in the Union Budget 2022 on February 1, he said.
He identified four stocks based on the same theme.
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Larsen & Toubro: Picking this stock from infra space, Sedani said Larsen & Toubro boasts of being India's largest engineering and construction business. He recommended buying this stock for an upside of 16% in one year. Target for Larsen & Toubro according to Sedani was Rs 2281 per share. "It has a strong order book, which can growt at 15%. CAGR revenue can grow at a 19% rate. One should allocate 30% to Larsen & Toubro among the four stocks," he said.
UPL: This agro chemical company was Sedani's second choice given the likely focus on the rural sector in the upcoming Budget 2022. Sedani said UPL is among the five top companies in its space in the world. He said one should again allocate 30% to UPL and buy this share for a target of Rs 940. He said it translates into 15% upside from the CMP and one should wait for 12 months to achieve this target for UPL, said Sedani.
Tata Power: Sedani's third pick under 'Budget se Benefit' was this Tata company from power space. He said the government may come up with provisions for EVs in this budget and Tata Power could be a direct beneficiary. Recommending to allocate 20% of the portfolio, he is of the view that investors should buy Tata Power for an upside of 13% and target of Rs 264 per share in 12 months.
KNR Construction: Siddharth Sedani picked road & construction company KNR Construction as his fourth stock in the run up to the Budget. He said KNR Construction is the leader in its space. Allocating 20% to this stock, he said one can see a target of Rs 350 in 12 months in this share. It translates into an upside of 12 per cent.
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