16 Stocks To Buy To Profit From NAMO’s Budget Bonanza

Budget 2017 – After Note-Bandi Flak, no buffoonery regarding capital gains tax but shower of goodies likely

NAMO has faced so much flak from the intelligentsia because of the demonetization move that he is unlikely to have the nerve to try anything which may spook the stock market.

One of the biggest fears that has plagued the market, namely, the imposition of tax on long-term capital gains, is now more or less ruled out according to knowledgeable experts.

#Budget2017 unlikely to reintroduce Long Term Capital Gains Tax: Sources #Sensex #Nifty Live: https://t.co/nWEojd3eLp

— ETMarkets (@ETMarkets) January 30, 2017

#Budget2017 may increase holding period of listed shares for LTCG to 2 years: Sources#Sensex #Nifty Live: https://t.co/nWEojd3eLp pic.twitter.com/dVDsZ2U7vf

— ETMarkets (@ETMarkets) January 30, 2017

On the contrary, NAMO is expected to unleash a flurry of incentives, concessions and reforms which will send the stock markets soaring in the upward trajectory.

Budget 2017: Increase in rural spend, easing of tax slabs to boost FMCG sector https://t.co/3D2rJPwuxw by @iamrahuloberoi pic.twitter.com/MlwXnbr5DN

— ETMarkets (@ETMarkets) January 30, 2017

Four eminent experts; Sixteen top-quality stocks

To our good fortune, CNBC TV18 has rounded up four experts of proven caliber and got them to hand-pick sixteen stocks for us.

The four experts are S. P. Tulsian, Dipan Mehta, Prakash Diwan and Daljeet Singh Kohli. The stocks recommended by the quartet are as follows:

Let’s discuss a few stocks that look familiar:

Alphageo – “Stock Picker’s Delight”

Alphageo needs no introduction to us given that we have seen the fascinating manner in which Kenneth Andrade, the whiz-kid founder of Old Bridge Capital, stormed the counter and pocketed massive gains within just a few days.

The stock has also met with approval from Mudar Patherya. He called the stock a “stock picker’s delight” as a testimony to its ability to shower mega gains on its lucky shareholders.

GMM Pfaudler – Dark horse stock?

GMM Pfaudler is a mystery stock which has come from nowhere to suddenly become the favourite of ace stock pickers.

Nirmal Bang first put it in the spotlight and predicted that the stock would deliver a target price of Rs. 745.

Ajay Jaiswal of Stewarts & Mackertich followed suit and predicted a target price of Rs. 642 would be achieved.

Dipan Mehta’s logic for recommending the stock is quite convincing:

“A niche MNC company engaged in the manufacturing of glass-lined equipment. It has a large order from its parent company. It has a steady revenue stream and repeat orders for repair and maintenance from pharma companies”, he says.

UFO Moviez – Favourite of Ashish Kacholia with 70% upside potential

We had the privilege of studying the innards of UFO Moviez a few days ago. The stock has won the confidence of Ashish Kacholia, the whiz-kid stock picker.

Also, IDBI Capital, which has a stellar track record for finding multibaggers, has conducted an expert analysis of the stock and predicted that gains of upto 70% are expected to be harvested from the stock.

A similar opinion has been expressed by Axis Capital.

Dipan Mehta’s reasons for recommending UFO Moviez are very straightforward:

“The company has a unique model for film exhibition. The advertising revenue is growing at a good pace and major chunk of the advertising is coming from government. The company is providing solutions in tier II and tier III towns for the local advertising. The company follows asset light model and providing solutions to theatre owners.”

Ion Exchange – favourite of Rakesh Jhunjhunwala and Mukul Agrawal

A stock that has won the confidence of Rakesh Jhunjhunwala, the Badshah of Dalal Street, and Mukul Agrawal of Param Capital, qualifies as a no-brainer investment.

Exciting times ahead with 93% upside – Ventura:

The stock has so far been leading a sedate existence but indications are that it is getting its act in order and is heading for the good times.

Ventura has issued an initiating coverage report in which it has recommended a buy on the following logic:

“Ion Exchange, despite having a tepid performance over the last few years, is up for exciting times. Execution of the Sri Lanka project is expected to take its revenue growth trajectory higher along with a hefty improvement in margins from the Engineering segment. The US FDA nod for pharma resins is a shot in the arm as it is expected to be the next lever of growth in the chemicals segment.”

Ventura’s target price for Ion Exchange is Rs. 539, which works out to a whopping upside potential of 93% from the price of Rs. 279 at which Ventura made the recommendation.

Prakash Diwan has echoed logic that is similar to that of Ventura:

“The company is a leader in water purification. It has a won a desalination project in Sri Lanka. Margins are improving and has got approval from USFDA for pharma resin compound manufacturing.”

Lakshmi Vilas Bank – favourite of Prof Shivanand Mankekar

When Daljeet Kohli first recommended Lakshmi Vilas Bank in December 2015, I instinctively knew that we had a mega winner in our hands.

The reason for my optimism was because Prof Shivanand Mankekar, the reclusive stock wizard, has a stranglehold on the Bank.

The stock has effortlessly spurted from Rs. 97 to Rs. 140, putting gains of 44% on the table in just 12 months.

Daljeet’s target price of Rs. 113 has long come and gone. His revised target price of Rs. 165 should not be difficult for the Bank to scale given the pedigree of its management and aggressive expansion plans.

Conclusion

Now, all eyes are on NAMO and Arun Jaitley, the Finance Minister. If the duo is content to let things remain as they are, hefty gains are in the offing. However, if the duo indulges in the buffoonery of revoking the exemption to long-term capital gains, all bets are off the table and it will be each man for himself!