Top 5 Stocks to Invest Before India’s Union Budget 2018

By | February 1, 2018

India’s Union Budget 2018 is in the corner and you want to grab the opportunity to make some quick bucks while investing in Indian equity markets. If it is so, then invest in stocks that likely to outperform pre and post-Union Budget 2018. Most of the stock analysts believe that stocks that work on rural development, consumption sector, and infrastructure likely to be the beneficiaries of the budget.

Read Also: 5 Top Pharma Stocks To Invest in India – 2018



It is expected that Government of India’s focus will be on rural development and employment generation by implementing various policies. Union Budget 2018 will be the next big thing that may trigger Indian stock markets to make a new high.

GoI likely to announce various schemes and policy benefits to uplift rural economy and eventually disposable income may also rise. Due to that, consumption also increases and so you can focus on consumer-oriented stocks as well. To uplift rural zone, infrastructure, and affordable home are key things to eye on.

Top 5 Stocks to Invest Before India’s Union Budget 2018

There are thousands of companies that may be benefitted from India’s Union Budget 2018. However, I choose only 5 stocks that I am looking forward to invest before Union Budget 2018.

Read Also: 5 Stocks That May Grow To Large Cap Stocks In India

Hero Moto Corp

Hero Moto Corp is the 2nd largest two-wheeler manufacturer in India. It has a market cap of way over 75,000 Crore and its P/E is 21.90 and is likely to outperform in 2018 and in future too. Hero Motocorp is actually a long-term bet and you can keep it in your portfolio as well.

It is currently trading at around 3750 and so, you can buy Hero MotoCorp for a target of 4100 and put a Stop Loss at 3550.

Top 5 Stocks to Invest Before India's Union Budget 2018

Performance
 
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Hero Motocorp -1.09 3.88 -0.81 23.54 6.51 14.46 18.26
S&P BSE Sensex -0.72 2.98 8.08 27.14 6.63 11.39 5.14
S&P BSE Auto -0.69 6.46 9.87 28.64 12.13 17.95 16.50

Escorts

Escorts operates in the sectors of agri-machinery, construction, and material handling equipment. It is a market leader in its segment and has a market cap of 9500 Crore. Although, its P/E is on the higher side of 38 and already it has returned more than 130% in the last year or so. In fact, most of the analyst thinks that the stock may touch 850 levels.

Escorts stock is currently trading at around 775 and you can invest in it for a target of 850+. Don’t forget to put Stop Loss at 695.

Top 5 Stocks to Invest Before India's Union Budget 2018

Performance
 
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Escorts -1.87 11.96 17.15 140.92 81.87 60.24 16.76
S&P BSE Mid Cap -0.54 5.78 14.83 46.11 18.94 19.61 5.82
S&P BSE Auto -0.69 6.46 9.87 28.64 12.13 17.95 16.50

UPL – United Phosphorus

United Phosphorus mainly in the business of pre to post-harvest agricultural solutions. It provides quality seeds, seed treatment, and industrial chemicals. UPL market cap is around 40,000 Crore and P/E is 20.86. You can buy UPL for a target of 890 with a Stop Loss at 720.

Top 5 Stocks to Invest Before India's Union Budget 2018

Performance
 
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
UPL 1.41 5.97 -0.65 17.43 29.94 42.46 15.22
S&P BSE Sensex -0.72 2.98 8.08 27.14 6.63 11.39 5.14
Nifty Commodities -0.34 4.87 8.61 32.58 14.33 9.67 1.28

Hatsun Agro

Hatsun Agro is a mid-cap stock and has the potential to become a large-cap stock. Its market cap is about 12,600 Crore and P/E is above 86. It has a very good run in the last year and returned almost 130% to its investors.

Currently Hatsun Agro is trading 830 levels and you can buy the stock for a target of 910 with a Stop Loss at 780.

Top 5 Stocks to Invest Before India's Union Budget 2018

Performance
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Hatsun Agro Products 0.46 -5.74 19.43 128.87 54.15 68.17 46.96
S&P BSE Mid Cap -0.54 5.78 14.83 46.11 18.94 19.61 5.82
S&P BSE FMCG -0.86 3.10 8.50 30.34 10.88 12.32 16.02

Jain Irrigation

Jain Irrigation manufactures products like drip and sprinkler irrigation systems and its components. It also produces PVC and PE piping systems, plastic sheets, greenhouses, bio-fertilizers, solar power, solar water-heating systems, solar-based water pumps, turnkey biogas plants and much more. In fact, it is one of the top picks to invest before India’s Union Budget 2018.

Jain Irrigation market cap is about 6400 Crore and P/E is above 46. You can buy Jain Irrigation for a target of 150 and keep Stop Loss at 110.

Top 5 Stocks to Invest Before India's Union Budget 2018

Performance
  YTD 1-Month 3-Month 1-Year 3-Year 5-Year 10-Year
Jain Irrigation Systems 2.11 8.44 35.28 44.73 21.69 11.06 0.69
S&P BSE Mid Cap -0.54 5.78 14.83 46.11 18.94 19.61 5.82
Nifty Commodities -0.34 4.87 8.61 32.58 14.33 9.67 1.28

I hope you like the 5 top stocks that I have mentioned above keeping in mind India’s Union Budget 2018. However, there are other stock ideas that I will in my next post. So, if you like this post, then do share it with your friends, relatives, colleagues or on your social networks.

You can also comment below to know more or share and express your views as well.

 

Published on: Jan 02, 2018

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