Amid Budget 2022, the domestic brokerage firm Angel One comes out with a list of top 7 stocks from different sectors that may be aided by the Union Budget for the financial year 2022-23. 

COMMERCIAL BREAK
SCROLL TO CONTINUE READING

The Union Budget 2022 is scheduled to be presented on February 1, 2022, at around 11:00 am by finance minister Nirmala Sitharaman in Parliament.  

See Zee Business Live TV Streaming Below:

The scrips that Angel One picked as a perfect bet from the non-BFSI (Banking Financial Services and Insurance) category are Sona BLW Precision; Kalpataru Power; Carborundum Universal; JK Lakshmi Cement; Stove Kraft; Bajaj Electrical and Oberoi Realty. 

These seven companies, mainly revolved around auto, power, and infra (realty) categories. It is also speculated by many analysts that the government is likely to announce mega announcements for infrastructure and may also induct some measures/announcements for the electric mobility segment. 

On the valuations front, each of these above-mentioned stocks to grow in FY22 as well as FY23 as expected by the brokerage house. Oberoi Realty to witness a maximum jump in terms of return on equity as FY22/FY23E is 29/28, while Sona BLW Precisions P/E ratio in FY22/FY23E is 122.5/82x. 

On the earnings front, Angel One expects Kalpatru Power, Sona BLW Precision, Bajaj Electrical, and Oberoi Realty annual topline and bottom line to spurt for FY22 as well as FY23. For Kalpatru, estimated sales and profit for FY22 are Rs 8304/508 crore and Rs 9064/666 crore for FY23. 

Similarly, for Sona BLW projected revenue and profit for FY22 is Rs 2171/335 crore and Rs 2997/500 crore for FY23; for Bajaj Electrical it is Rs 5180/200 crore for FY22E and Rs 5990/321 crore for FY23E. 

Angel One expects Budget 202 will focus on gradual fiscal consolidation though there will be a continued focus on critical sectors like housing, infra, and manufacturing along with continued thrust on boosting the rural economy, and don’t see any major changes in personal income tax.