Stock Pick for Budget 2022: This healthcare stock that nearly doubled in one year can be a dark horse post announcements, says expert
With expectation for increased allocation to healthcare and social security, this stock might turn out to be a dark horse, Gaurav Garg, Head of Research at CapitalVia Global Research says
There are several stocks that are likely to benefit with the provisioning in the Union Budget 2022. Union Finance Minister Nirmala Sitharaman will present the Budget on February 1, 2022. Last year, Sitharaman had presented first digital budget ever in the view of Covid 19. The Union Budget 2021 saw significant allocation being made to healthcare sector and it is likely that the government may give similar or increased allocation to this space as pandemic continues to pose challenge to healthcare systems worldwide.
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There is one stock that can benefit from this provisioning by the Union Finance Minister in the Budget 2022.
Gaurav Garg, Head of Research at CapitalVia Global Research, feels that Apollo Hospital can be one such stock.
As on January 14, Apollo Hospital shares have surged 97 per cent in the last one year, while they appreciated by 232% in the last two year.
At 2pm on Friday, shares of Apollo Hospital were trading flat with negative bias at Rs 4963 per share on the BSE, down Rs 21.05 or 0.42%.
"With expectation for increased allocation to healthcare and social security, this stock might turn out to be a dark horse," said Garg.
Speaking of focus area, Garg said the street would focus on government’s disinvestment targets as government failed to meet its 1.75 lah crore target and in this year and the target might be revised.
"For salaried class government might consider PPF limit increase under 80C from 1.5 lacs as it was untouched in last budget, "he said.
Last year, allocating significant portion to health budget, Sitharaman had said, " I would like to say that the investment on health infrastructure in this Budget (2021) has increased substantially.
Progressively, as institutions absorb more, we shall commit more. Taking a holistic approach to health, we focus on strengthening three areas—preventive, curative and wellbeing."
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