Budget 2019-20: Going by the government's thrust on infrastructure development in India and BJP's promise of massive investments in the sector, market analysts are betting big on the prospects for infrastructure stocks. Narendra Modi's ruling BJP (Bharatiya Janata Party) had promised a massive Rs 100 lakh crore investment in infrastructure over the next five years, in its election manifesto. India saw growth in infrastructure and heavy engineering sectors in the Jan-Mar quarter. Besides infrastructure, the government is unlikely to announce any fresh sops for other sectors. Rahul Shah, Vice President, Group Advisory Leader-PCG, Motilal Oswal Financial Services, recommends buying these top five stocks as India Union Budget 2019 approaches.
L&T: L&T reported year-on-year 18 per cent growth in its consolidated gross revenue in financial year 2018-19. It reported profit after tax at Rs 8,905 crore, up 21 per cent from the previous year. The company also boasts off a strong book order during the last fiscal.
Cummins India: Given the government's impetus on road construction, infrastructure and railways, Cummins India is expected to grow in the current fiscal. The overall growth prospects for the company look promising given the stable government.
UltraTech Cement: Construction GVA had achieved the highest growth of 9.7 per cent in the third quarter of FY19 and an average growth of 8.7% in all the quarters in FY19 as compared with an average rate of 5.6 per cent in FY18. UltraTech Cement is an attractive stock as the cement major expanded its capacity and market share after the acquisition of Century's cement assets and Binani.
SBI: State Bank of India is being recommended by the brokerage house as it is the largest lender in India. State-run bank SBI reported standalone net profit of Rs 838 crore for the quarter ended March. It recently announced plans to raise capital via Basel-III compliant debt instruments during current financial year.
NTPC: India's largest power generation company NTPC is preferred by analysts as it reported 48.7 per cent jump in its standalone net profit at Rs 4,350.32 crore for Jan-Mar compared to the year-ago period on account of lower expenses. It lately received 40MW of solar projects from Uttar Pradesh New & Renewable Energy Development Agency (UPNEDA).
Disclaimer: The stock recommendations are made by Motilal Oswal Financial Services, and not by Financial Express Online. Please consult your investment advisor and exercise discretion before investing.