76 stocks turned multibaggers since last Budget. Which sectors may benefit this time?

NEW DELHI: Since Finance Minister Nirmala Sitharaman's last Budget presentation in 2022, at least 76 stocks have turned multibaggers on the BSE with the top gainer turning into a 16-bagger.

According to a study of BSE-listed stocks with a market capitalisation of over Rs 500 crore, 3 stocks - Rajnish Wellness, SG Finserve and NIBE - gained more than 1,000% since February 1 last year.

Other top gainers include Gensol Engineering, Knowledge Marine and Engineering Works, Cressanda Solutions, Medico Remedies, Choice International, Ugar Sugar, Vadilal Industries and Kirlosker Electric.

The list of multibaggers also include 3 bank stocks - Karnataka Bank (127%), UCO Bank (125%), Karur Vysya Bank (111%) and South Indian Bank (104%).
PSUs in the list of multibaggers since the last Budget include GRSE (109%), RVNL (113%) and Mazagon Dock Shipbuilders (182%).



In the last Budget, which was pro-growth, Sitharaman had increased capex by 35%. Nifty had welcomed the Budget with great vigour and closed the Budget day session on a cheerful note, up 1.4%.

What should investors do
Dalal Street investors are counting on Sitharaman to once again present a growth-oriented Budget with a focus on increasing capex spending.

Domestic brokerage firm Nuvama expects spending focus could rotate towards the rural sector in FY24, after a lackluster trend in the last two years. Rural sentiments have slipped and demand has softened and therefore may require government support in terms of higher allocations to schemes like NREGA and PM Kisan, it said.

Brokerages also expect continued emphasis on the manufacturing sector.

Budget focus areas could include subtle support of consumption, a strong focus on manufacturing with an emphasis on MSMEs, higher infrastructure spending, asset monetisation, and agriculture and rural spending, global brokerage firm Nomura said.

Any disappointment in the form of higher fiscal consolidation would be construed negatively by investors, especially at the time of the ongoing global macro headwinds.

Morgan Stanley said factors that will likely have maximum impact include a credible fiscal deficit target, the government's spending plans vs. fiscal consolidation, and changes to long-term capital gains tax.

Sitharaman's Budget is likely to bring sectors like infrastructure, building materials and consumer durables in focus.

"Focus on the infrastructure development activities such as roads and construction will continue, which in turn, would enable infrastructure companies and building-materials segments such as cement, tiles, and others to post robust performance moving forward," Axis Securities said.

(With data inputs from Ritesh Presswala)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times