Budget stock picks: Bajaj Broking lists 3 stocks that look poised for growth on technical charts | Stock Market News

Bajaj Broking stated that Finance Minister Nirmala Sitharaman created history on February 1, 2025, by presenting her eighth consecutive Union Budget, reinforcing the government’s commitment to economic growth. This budget plays a crucial role in laying out a roadmap for achieving Viksit Bharat (Developed India). The Finance Minister emphasised four key growth drivers—Agriculture, Micro, Small and Medium Enterprises (MSMEs), Investment, and Exports—as the backbone of India’s economic transformation.

A major highlight was the new tax regime, which ensures no income tax liability up to ₹12 lakh, bringing significant savings for taxpayers. Bajaj Broking noted that tax benefits will range between ₹80,000 and ₹1.1 lakh per individual, a move expected to boost consumer spending and overall economic activity.

Stocks to buy post Budget

With these fiscal policies in focus, Bajaj Broking identified three stocks poised for gains post-budget—United Spirits, Dabur India, and Exide Industries.

United Spirits: Excise Duty Cuts to Drive Profit Margins | Buying Range: ₹1,390-1,450 | Target: ₹1,690 | Upside: 19%

Bajaj Broking pointed out that the alcoholic beverages sector is set to benefit from the budget’s provisions, making United Spirits a promising investment opportunity. The government’s excise duty reductions are expected to lower operational costs, improve profit margins, and enhance the company’s market position. Additionally, the industry-friendly policies indicate a supportive regulatory environment, creating long-term growth prospects for the sector.

The brokerage added that United Spirits’ stock price is gaining buying momentum from the 52-week Exponential Moving Average (EMA) and a key retracement area, presenting a fresh entry opportunity with a favourable risk-reward ratio. It expects the stock to resume its upward trajectory, targeting ₹1,690 in the coming year, which marks its previous all-time high.

Dabur India: Consumer Spending to Bolster Growth | Buying Range: ₹530-550 | Target ₹636 | Upside: 18%

Bajaj Broking emphasised that the budget’s focus on boosting consumer spending could significantly benefit Dabur India Ltd. The increased tax exemption limits and higher disposable incomes are expected to revive demand for essential goods, positively impacting Dabur’s health, wellness, and personal care segments.

The brokerage highlighted that the budget’s consumer-friendly measures will uplift economic sentiment, positioning Dabur to capitalize on rising demand. This should result in higher sales volumes and stronger investor confidence, supporting the company’s growth trajectory.

From a technical perspective, Bajaj Broking stated that Dabur India’s stock is rebounding from the lower band of a four-year price range, coinciding with the 50-month EMA. This setup presents an attractive entry point for investors. The stock is projected to advance towards ₹638 in the coming quarters, reflecting an 80 per cent retracement of its prior decline from ₹672 to ₹499.

Exide Industries: Battery Sector Incentives to Boost Demand | Buying Range: ₹368-382 | ₹448 | Upside 19%

Bajaj Broking noted that Exide Industries stands to gain from the budget’s support for battery and electric vehicle (EV) manufacturing. The government’s proposal to exempt basic customs duty (BCD) on critical battery raw materials—including cobalt, lithium-ion battery waste, lead, and zinc—is expected to lower production costs and improve profitability for Exide. Additionally, duty exemptions on 35 new components for EV battery production and 28 for mobile phone batteries will provide further support to the industry.

The brokerage highlighted that Exide’s stock has formed a bullish Piercing Line candle on the weekly chart, indicating a potential reversal from its recent corrective decline. Bajaj Broking expects Exide’s stock to witness a strong pullback, targeting ₹448, which represents the 38.2 per cent retracement of its decline from ₹620 to ₹337 and the trendline resistance from June and October 2024 highs.

Disclaimer: The views and recommendations made above are those of individual analysts or broking companies, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.