The Booster Budget 2025

co-presented by

  • LIC

associated by

  • Hettich
  • Angel One
  • Alivus
  • CoinCDX
  • SBI Bank
HomeBudgetBudget stocks: 25 companies whose fortunes are closely linked with the Budget

Budget stocks: 25 companies whose fortunes are closely linked with the Budget

Investors are closely monitoring the upcoming Union Budget 2025 for possible impact on various sectors such as infrastructure, power, defence, and renewable energy.

February 01, 2025 / 06:55 IST
Industry stakeholders also emphasize the need for a forward-looking approach integrating sustainability and digital transformation.

Industry stakeholders also emphasize the need for a forward-looking approach integrating sustainability and digital transformation.

 
 
live
  • bselive
  • nselive
Volume
Todays L/H
More

When Finance Minister Nirmala Sitharaman presents the Union Budget on February 1, it will be her eighth budget but an important one as it comes amidst a slew of global and domestic uncertainties and headwinds for the markets and the overall economy.

While it is expected that the budget will focus on growth and infrastructure among other things, quite a few sectors – and stocks, in particular -- will be in the limelight on the day of the Budget.?Nifty has tumbled 9% in the past four months and investors will be looking for positive cues from Budget 2025.

Capex and Infrastructure; Stocks to Watch: L&T, UltraTech Cement

Post-election, concerns over slower order flows have impacted growth expectations in the sector. Delays have already been evident, with a 12.3 percent contraction in capex during the April-November period of FY24. The capex-to-revenue ratio also dropped from 28 percent in FY24 to 23 percent, signalling a need for faster execution in FY25.

Jefferies highlights low investor expectations for L&T, suggesting potential upside on guidance delivery. L&T’s robust infrastructure orders position it for substantial growth. While for UltraTech, the anticipated 10-12 percent rise in capex, driven by initiatives like the National Infrastructure Pipeline (NIP), Pradhan Mantri Gati Shakti, and Bharatmala Pariyojana, will boost infrastructure development and affordable housing. The proposed GST reduction on cement further supports growth in the sector.

Road and Construction; Stocks to Watch: KNR Construction, Ashoka Buildcon

The government is expected to raise the allocation for the Ministry of Road Transport and Highways (MoRTH) by 5-6 percent. This is expected to spur private investments in highway projects, particularly those under the Build-Operate-Transfer (BoT) model. Focus will also be on rural road development with increased funding for the Pradhan Mantri Gram Sadak Yojana (PMGSY), including a 10 percent increase in funding for the fourth phase. For FY26, MoRTH aims to construct and award 12,000-13,000 kilometers of national highways.

Both KNR Construction and Ashoka Buildcon are poised to benefit from MoRTH’s ambitious plans. These stocks are already seeing strong returns, but potential delays due to land acquisition and regulatory issues could affect short-term performance.

Power; Stocks to Watch: Siemens, Thermax

The power sector has been facing short-term demand slowdowns but remains a key focus for the government. Allocations to the Ministry of Power saw a 16 percent increase in FY25 (Rs 20,502 crore), and similar budgetary support is expected in FY26, especially for renewable energy initiatives.

Siemens stands to benefit from a burgeoning transmission pipeline, with expectations of a significant revenue boost. Jefferies views the tripling of the transmission bid pipeline over the past two years to significantly boost Siemens' revenues.

Thermax, focusing on clean energy and industrial power, is also poised for growth, driven by increasing investments in infrastructure and a shift towards sustainable energy. Jefferies noted that infrastructure and industrial capex are projected to grow at a CAGR of 13 per cent from FY24-27, compared to 6 per cent between FY11-20. The firm is also likely to benefit from its transition into a company focused on clean energy.

Defence; Stocks to Watch: HAL, BEL

The Ministry of Defence has designated 2025 as the 'Year of Reforms,' with an emphasis on modernisation and indigenisation. The defence budget is expected to focus heavily on capital expenditure, especially for electronics, vehicles, and aircraft, which will benefit companies in the defence manufacturing sector. Jefferies projects defence spending to grow at a 7-8 percent CAGR from FY24 to FY30, with a $100-120 billion domestic opportunity over 5-6 years, implying a 13 percent industry CAGR during the same period.

Hindustan Aeronautics Ltd (HAL) reported 50-52 percent YoY order growth in FY24 (~Rs 40,000 crore) and targets Rs 60,000+ crore in FY25. JV agreements with global players like GE, position it as a top defence OEM. Jefferies projects a 20 percent EPS CAGR over five years, driven by indigenisation. Bharat Electronics Limited has nearly 60 percent share. In the overall defence market, the company has consistently improved its revenue market share over the last four years, reaching 12.8 percent in FY24.

Railways; Stocks to Watch: RVNL, BEML, IRFC

The railway sector is poised for a significant budget boost, with expectations of a 15-18 percent increase in allocations. The government is focusing on augmenting capacity, enhancing rolling stock, and modernizing infrastructure, including investments in Vande Bharat trains. Moneycontrol has earlier reported that the government may allocate Rs 2.9-3 lakh crore as gross budgetary support (GBS) for Indian Railways in 2025-26.

An upgrade of 40,000 bogies and expanding the Kavach ATCS system across 10,000 kms is underway. AI integration in ticketing and track monitoring will improve efficiency and ‘Make in India’ will create new opportunities.

Real Estate; Stocks to Watch: Oberoi Realty, PNB Housing, AAVAS Financiers

The real estate sector is grappling with rising raw material costs and outdated definitions of affordable housing. A revision of criteria for affordable housing and incentives such as tax breaks, subsidies, and industry status could provide much-needed relief to developers. Streamlining regulations and simplifying the approval process could spur foreign investments in the commercial real estate space.

Stocks like PNB Housing and AAVAS Financiers are likely to benefit from policy support, especially if affordable housing criteria are revised to better reflect the rising cost of land and materials. Additionally, a possible reintroduction of the Credit-Linked Subsidy Scheme (CLSS) under PMAY could further stimulate demand in this segment.

Consumption; Stocks to Watch: HUL, ITC, Dabur, Marico, Emami

The government is likely to introduce tax measures aimed at boosting disposable incomes, such as an increase in the standard deduction and higher tax exemption limits. A reduction in excise duty on fuel could further reduce inflationary pressures, enhancing consumer spending.

Consumption stocks have had a rough ride with stocks like HUL and ITC down 22% and 16% from 52-week highs amid a slowdown in urban consumption. Despite challenges such as inflation and higher input costs, FMCG stocks are poised to benefit from any fiscal policies aimed at boosting consumption. CLSA is of the view that if the government priorities change towards more welfare, affordable consumption side of things, then it is the beaten down staples sector that will stand to benefit.

Renewables; Stocks to Watch (Green Energy): Waaree Energies, Inox Wind, NTPC Green; (Solar Energy): Adani Solar, Borosil Renewables, Sterling & Wilson

The government’s push for renewable energy has seen India add significant capacity in 2024 as it added nearly 15 GW of capacity between April and November 2024 - doubling the 7.54 GW added during the same period in the previous year. India has set a 2030 target of 500 GW of renewable energy, complemented by initiatives like PM-KUSUM and green hydrogen programs. The installed non-fossil fuel capacity is at 214 GW, representing a 14 percent year-on-year growth.

Meanwhile, India’s solar sector is also witnessing robust growth, with a strong emphasis on increasing rooftop solar capacity, driven by initiatives like the PM Surya Ghar Yojana. The government is also working to enhance the National Solar Portal to improve project execution efficiency and is exploring battery energy storage systems (BESS) to optimise grid management. A new mandate requiring solar cells to be sourced only from manufacturers listed in the approved list of models and manufacturers (ALMM) starting June 2026 is expected to streamline the sector.

Khushi Keswani
first published: Jan 31, 2025 10:37 am

Discover the latest Business News, Budget 2025 News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!

Advisory Alert: It has come to our attention that certain individuals are representing themselves as affiliates of Moneycontrol and soliciting funds on the false promise of assured returns on their investments. We wish to reiterate that Moneycontrol does not solicit funds from investors and neither does it promise any assured returns. In case you are approached by anyone making such claims, please write to us at grievanceofficer@nw18.com or call on 02268882347
universo-virtual.com
buytrendz.net
thisforall.net
benchpressgains.com
qthzb.com
mindhunter9.com
dwjqp1.com
secure-signup.net
ahaayy.com
soxtry.com
tressesindia.com
puresybian.com
krpano-chs.com
cre8workshop.com
hdkino.org
peixun021.com
qz786.com
utahperformingartscenter.org
maw-pr.com
zaaksen.com
ypxsptbfd7.com
worldqrmconference.com
shangyuwh.com
eejssdfsdfdfjsd.com
playminecraftfreeonline.com
trekvietnamtour.com
your-business-articles.com
essaywritingservice10.com
hindusamaaj.com
joggingvideo.com
wandercoups.com
onlinenewsofindia.com
worldgraphic-team.com
bnsrz.com
wormblaster.net
tongchengchuyange0004.com
internetknowing.com
breachurch.com
peachesnginburlesque.com
dataarchitectoo.com
clientfunnelformula.com
30pps.com
cherylroll.com
ks2252.com
webmanicura.com
osostore.com
softsmob.com
sofietsshotel.com
facetorch.com
nylawyerreview.com
apapromotions.com
shareparelli.com
goeaglepointe.com
thegreenmanpubphuket.com
karotorossian.com
publicsensor.com
taiwandefence.com
epcsur.com
odskc.com
inzziln.info
leaiiln.info
cq-oa.com
dqtianshun.com
southstills.com
tvtv98.com
thewellington-hotel.com
bccaipiao.com
colectoresindustrialesgs.com
shenanddcg.com
capriartfilmfestival.com
replicabreitlingsale.com
thaiamarinnewtoncorner.com
gkmcww.com
mbnkbj.com
andrewbrennandesign.com
cod54.com
luobinzhang.com
bartoysdirect.com
taquerialoscompadresdc.com
aaoodln.info
amcckln.info
drvrnln.info
dwabmln.info
fcsjoln.info
hlonxln.info
kcmeiln.info
kplrrln.info
fatcatoons.com
91guoys.com
signupforfreehosting.com
faithfirst.net
zjyc28.com
tongchengjinyeyouyue0004.com
nhuan6.com
oldgardensflowers.com
lightupthefloor.com
bahamamamas-stjohns.com
ly2818.com
905onthebay.com
fonemenu.com
notanothermovie.com
ukrainehighclassescort.com
meincmagazine.com
av-5858.com
yallerdawg.com
donkeythemovie.com
corporatehospitalitygroup.com
boboyy88.com
miteinander-lernen.com
dannayconsulting.com
officialtomsshoesoutletstore.com
forsale-amoxil-amoxicillin.net
generictadalafil-canada.net
guitarlessonseastlondon.com
lesliesrestaurants.com
mattyno9.com
nri-homeloans.com
rtgvisas-qatar.com
salbutamolventolinonline.net
sportsinjuries.info
topsedu.xyz
xmxm7.com
x332.xyz
sportstrainingblog.com
autopartspares.com
readguy.net
soniasegreto.com
bobbygdavis.com
wedsna.com
rgkntk.com
bkkmarketplace.com
zxqcwx.com
breakupprogram.com
boxcardc.com
unblockyoutubeindonesia.com
fabulousbookmark.com
beat-the.com
guatemala-sailfishing-vacations-charters.com
magie-marketing.com
kingstonliteracy.com
guitaraffinity.com
eurelookinggoodapparel.com
howtolosecheekfat.net
marioncma.org
oliviadavismusic.com
shantelcampbellrealestate.com
shopleborn13.com
topindiafree.com
v-visitors.net
qazwsxedcokmijn.com
parabis.net
terriesandelin.com
luxuryhomme.com
studyexpanse.com
ronoom.com
djjky.com
053hh.com
originbluei.com
baucishotel.com
33kkn.com
intrinsiqresearch.com
mariaescort-kiev.com
mymaguk.com
sponsored4u.com
crimsonclass.com
bataillenavale.com
searchtile.com
ze-stribrnych-struh.com
zenithalhype.com
modalpkv.com
bouisset-lafforgue.com
useupload.com
37r.net
autoankauf-muenster.com
bantinbongda.net
bilgius.com
brabustermagazine.com
indigrow.org
miicrosofts.net
mysmiletravel.com
selinasims.com
spellcubesapp.com
usa-faction.com
snn01.com
hope-kelley.com
bancodeprofissionais.com
zjccp99.com
liturgycreator.com
weedsmj.com
majorelenco.com
colcollect.com
androidnews-jp.com
hypoallergenicdogsnames.com
dailyupdatez.com
foodphotographyreviews.com
cricutcom-setup.com
chprowebdesign.com
katyrealty-kanepa.com
tasramar.com
bilgipinari.org
four-am.com
indiarepublicday.com
inquick-enbooks.com
iracmpi.com
kakaschoenen.com
lsm99flash.com
nana1255.com
ngen-niagara.com
technwzs.com
virtualonlinecasino1345.com
wallpapertop.net
nova-click.com
abeautifulcrazylife.com
diggmobile.com
denochemexicana.com
eventhalfkg.com
medcon-taiwan.com
life-himawari.com
myriamshomes.com
nightmarevue.com
allstarsru.com
bestofthebuckeyestate.com
bestofthefirststate.com
bestwireless7.com
declarationintermittent.com
findhereall.com
jingyou888.com
lsm99deal.com
lsm99galaxy.com
moozatech.com
nuagh.com
patliyo.com
philomenamagikz.net
rckouba.net
saturnunipessoallda.com
tallahasseefrolics.com
thematurehardcore.net
totalenvironment-inthatquietearth.com
velislavakaymakanova.com
vermontenergetic.com
sizam-design.com
kakakpintar.com
begorgeouslady.com
1800birks4u.com
2wheelstogo.com
6strip4you.com
bigdata-world.net
emailandco.net
gacapal.com
jharpost.com
krishnaastro.com
lsm99credit.com
mascalzonicampani.com
sitemapxml.org
thecityslums.net
topagh.com
flairnetwebdesign.com
bangkaeair.com
beneventocoupon.com
noternet.org
oqtive.com
smilebrightrx.com
decollage-etiquette.com
1millionbestdownloads.com
7658.info
bidbass.com
devlopworldtech.com
digitalmarketingrajkot.com
fluginfo.net
naqlafshk.com
passion-decouverte.com
playsirius.com
spacceleratorintl.com
stikyballs.com
top10way.com
yokidsyogurt.com
zszyhl.com
16firthcrescent.com
abogadolaboralistamd.com
apk2wap.com
aromacremeria.com
banparacard.com
bosmanraws.com
businessproviderblog.com
caltonosa.com
calvaryrevivalchurch.org
chastenedsoulwithabrokenheart.com
cheminotsgardcevennes.com
cooksspot.com
cqxzpt.com
deesywig.com
deltacartoonmaps.com
despixelsetdeshommes.com
duocoracaobrasileiro.com
fareshopbd.com
goodpainspills.com
kobisitecdn.com
makaigoods.com
mgs1454.com
piccadillyresidences.com
radiolaondafresca.com
rubendorf.com
searchengineimprov.com
sellmyhrvahome.com
shugahouseessentials.com
sonihullquad.com
subtractkilos.com
valeriekelmansky.com
vipasdigitalmarketing.com
voolivrerj.com
zeelonggroup.com
1015southrockhill.com
10x10b.com
111-online-casinos.com
191cb.com
3665arpentunitd.com
aitesonics.com
bag-shokunin.com
brightotech.com
communication-digitale-services.com
covoakland.org
dariaprimapack.com
freefortniteaccountss.com
gatebizglobal.com
global1entertainmentnews.com
greatytene.com
hiroshiwakita.com
iktodaypk.com
jahatsakong.com
meadowbrookgolfgroup.com
newsbharati.net
platinumstudiosdesign.com
slotxogamesplay.com
strikestaruk.com
trucosdefortnite.com
ufabetrune.com
weddedtowhitmore.com
12940brycecanyonunitb.com
1311dietrichoaks.com
2monarchtraceunit303.com
601legendhill.com
850elaine.com
adieusolasomade.com
andora-ke.com
bestslotxogames.com
cannagomcallen.com
endlesslyhot.com
iestpjva.com
ouqprint.com
pwmaplefest.com
qtylmr.com
rb88betting.com
buscadogues.com
1007macfm.com
born-wild.com
growthinvests.com
promocode-casino.com
proyectogalgoargentina.com
wbthompson-art.com
whitemountainwheels.com
7thavehvl.com
developmethis.com
funkydogbowties.com
travelodgegrandjunction.com
gao-town.com
globalmarketsuite.com
blogshippo.com
hdbka.com
proboards67.com
outletonline-michaelkors.com
kalkis-research.com
thuthuatit.net
buckcash.com
hollistercanada.com
docterror.com
asadart.com
vmayke.org
erwincomputers.com
dirimart.org
okkii.com
loteriasdecehegin.com
mountanalog.com
healingtaobritain.com
ttxmonitor.com
bamthemes.com
nwordpress.com
11bolabonanza.com
avgo.top