MUMBAI: Finance minister Arun Jaitley said the government will put in place a revised mechanism and procedure to ensure time bound listing of identified central public sector enterprises (CPSEs) on stock exchanges.
“The disinvestment policy announced in the last budget will continue. The shares of Railway PSEs like IRCTC, IRFC and IRCON will be listed on stock exchanges,” the finance minister said in his budget speech on Wednesday afternoon. Apart from helping the government unlock value, the listing of shares on the stock exchanges would also enable these companies to meet their capital requirements from other sources other than the government.
Gainers and Losers
Top 5 stocks to look for in 2017
Sadbhav Engineering
Increase in outlay for infrastructure reconfirms the government’s focus on building road infrastructure where companies like Sadbhav Engineering are set to benefit.
Godrej Properties
If this budget was beneficial for a specific sector – then it is the Real Estate. Demonetisation and RERA also have been beneficial for organised developers like Godrej Properties. With strong branding by its side and attractive positioning of its projects, Godrej Properties has been able to sell significantly on launch even in extremely weak markets like Gurgaon and Noida.
Praj Industries
Praj has 70 per cent share in the Indian market and over 50 per cent share in emerging market in the Ethanol segment. Its growing share of emerging business like high purity systems (PHS), critical process equipment system (CPES) and water and wastewater treatment systems is expected to drive growth and margins over the next two to three years.
Jain irrigation
The budget has clearly focussed on rural India with emphasis on farmers. Jain Irrigation is the largest player in India’s organised micro-irrigation sector, with a dominant market share of 55 per cent.
Ashok Leyland
With focus on infrastructure, one can expect good demand for commercial vehicles. Replacement demand due to impending scrapping policy (ban of over 15-year-old vehicles) in various states and pre-buying in Q4FY17 due to implementation of the BS-IV emission norms are expected to drive sales in near future.
—By Ambareesh Baliga, Senior research analyst.
