NO SPECIFIC announcement in the budget pertaining to the paints sector. However, focus on affordable housing in both rural and urban areas and higher infrastructure spend augur well for the industry. In addition, a boost to rural income should help the company’s growth in the hinterland
AN EXTENSION of additional tax deduction on affordable home loan to aid business growth. Focus on infrastructure improvement bodes well, given the bank’s exposure to corporate loans. Setting up of bad bank and strengthening of NCLT may help in enabling faster resolution of stressed assets
THERE WERE no major announcements affecting the two-wheeler segment. However, focus on improving rural income is a positive for entry-level bikes. We remain positive on the company, given its endeavour to grow in the premium segment and the government’s thrust on exports via production-linked incentive
THE BUDGET did not have any specific announcement that would directly impact the lender, but the government’s resolve to push for growth and economic revival is likely to have a positive rub-off on segments such as consumer durables and overall consumerism.
EXTENSION OF additional deduction on home loans remains a positive for mortgage book growth. Given individual unit-linked product contribution at 42% of new business premium, rationalisation of taxation on premium upto Rs 2.5 lakh remains a deterrent. The overall thrust bodes well for credit business
THERE WAS no announcement impacting Airtel. Fundamentally, Airtel remains our top pick in the telecom sector given the relatively stronger retention of revenue market share with stable performance and comfortable leverage. The favourable industry structure of three players a good kicker for tariff increase
DR REDDY’S LABORATORIES
BUDGET WAS more or less silent on the pharma sector. We are positive on the stock because of the management’s sustained focus on cost rationalisation and endeavour to focus on simultaneous launches across geographies and segments. A strong, free cash flow and a healthy balance sheet are the strongholds
THERE WAS no budget announcement impacting HCL Technologies. Fundamentally, HCL Tech is in a sweet spot to capture demand traction in cloud and related services. In addition, better capital allocation and healthy margin trajectory make us positive on the stock from a long-term perspective
THE BUDGET has no major proposals that directly affect the real estate sector. The government has allowed for an additional deduction of Rs 1,50,000 towards affordable home loans. HDFC is the country’s largest home fi nancer, and therefore, may benefit from this.
NO DIRECT impact of the budget proposals on the largest private sector bank. However, the overall push for economic activities and infrastructure development augur well for the lending business. Also, an extra deduction of Rs 1,50,000 for affordable home loans may boost credit demand in this segment
THE ALLOCATION towards MGNREGA has increased to Rs 73,000 crore from Rs 61,500 crore in the FY20 budget. This would help in continuing the strong volume growth momentum in consumer & FMCG companies, specifically for those with the higher contribution coming from rural regions
THE PROPOSAL to set up a bad bank and better NCLT procedure are good signs since it is expected to result in faster resolution of stressed assets. An impetus to the development of infrastructure is a positive, given the bank’s exposure to corporate loan book.
THERE HAS been no change in excise duty on cigarettes, which is a relief. We have seen stable taxation on cigarettes after the GST implementation in the last three years with only one excise duty increase in the 2020 budget. This would benefit ITC.
NO SPECIFIC announcement that can directly affect IndusInd Bank. But the new scrappage policy for commercial vehicles (CV) may improve loan demand. The government has decided to accelerate infra spending, which augurs well for CVs and IndusInd
WE EXPECT Infosys to be a key beneficiary of multiyear growth in digital technology considering its ability to provide end-to-end solutions. Healthy deal wins are expected to help the company make a steady improvement in fi nancials in the coming quarters.