Thread by @alphaspotcap

Here’s our analysis of the #Budget2022 🇮🇳🇮🇳

The Winners, losers, surprises, disappointments and more!

A thread below🧵🧵🧵👇🏻

#investing #stocks

(1/15)

• Sitharaman increased the size of the budget by 14% from last year to $529 Billion to steady & accelerate the economic recovery.

• The Fiscal Deficit in the current year is estimated at 6.9% of the GDP. The Fiscal Deficit in 2022-23 is estimated at 6.4% of the GDP

(2/15)

• Here are the sectors that could be the winners:

1) Transport & Infrastructure:
The investment plans laid out by the finance minister are:
• 400 new Vande Bharat trains by 2025
• PM Gati Shakti Master Plan for Expressways, expanding the NH network by 25000km

(3/15)

• 100 PM Gati Shakti Cargo Terminals for multimodal logistics facilities by 2025

• Multimodal connectivity between urban transport & railway stations will be done on priority.

• Allocation of ₹48,000 crore for completion of 8mn houses under PMAY by 2025

(4/15)

• Here are the stocks that is likely to be a winner due to this boost:

1) L&T
2)GMR Infra
3)KNR Construction
4)Allcargo Logistics
5)IRCTC

(5/15)

2) Solar

• PLI Schemes worth ₹195Billion for solar modules to boost local manufacturers

• This will help the leading panel manufacturers derive growth

• Winners:

1) Tata Power
2)Suzlon Energy
3)Reliance Industries
4)Adani Enterprise

(6/15)

3) EV Battery Manufacturers:

Sitharaman announced a new swapping policy to promote India’s ambitions of clean transport technology.

• Exide Industries
• Amara Raja Batteries Limited

(7/15)

4) Metals:

• Government has announced ₹600Billion budget for piped water to almost 3.8 Crore homes.

• This would increase demand for Metals. So here are the companies that will benefit from the same:

1) Vedanta Limited
2) JSW Steel
3) Tata Steel
4) Jain Irrigation

(8/15)

5) Digital Finance:

The budget focused on expanding services provided by Digital Finance companies.

This could benefit:
1) eClerx Service Ltd
2) One 97 communication
3) Paisalo Digital

(9/15)

6) Telecommunications:

• 5G auction will be the key spectacle in the Telecommunications space in the country. So increased spending will be greatly beneficial for the following companies:

1) Bharti Airtel
2) Reliance Industries
3) Sterlite Technology
4) Tejas Network

(10/15)

• Here are the sectors that were left disappointed:

1) PSU Banks:

India’s plan to start digital currency could hurt India’s top lenders like
1) SBI
2) BOB
3) Canara Bank
4) Punjab National Bank

India’s focus is on to keep pace with how the world adopts cryptocurrency

(11/15)

2) Crypto Space:

The infamous decision to lavy flat 30% tax on profits from the sale or transfer of digital assets like crypto and NFT will deflate the profits and make it look less attractive.

1) Wazir X
2) CoinDCX
3) Coinswitch Kuber

(12/15)

3) Stainless Steel

India has made plans to revoke some anti-dumping duties on stainless steel, coated steel flat products, alloy steel given the rise in metal prices. This is expected to affect the biggest producers:

1) Jindal Stainless Ltd
2) Tata Metaliks Ltd

(13/15)

3) Automobile:

The semiconductor crunch and no special attention given in the budget can hurt the automobile industry in the coming days.

1) Maruti Suzuki
2) Tata Motors
3) Mahindra & Mahindra

(14/15)

• The government aims to attain the vision by complementing the macro-economic level growth focus with a micro-economic level welfare focus, promoting digital economy & fintech, technology enabled development, energy transition, & climate action.

(15/15)

• How would you rate this budget out of 5 and why?

@caniravkaria @saketreddy @jitendrajain @darshitpatel84

Comment down below!