Budget 2024: Havells, Bluestar, V-Guard, Bajaj Electric share price rise on continued focus on housing, infrastructure

Budget 2024: Havells, Bajaj Electrical, Bluestar, V-Guard, Dixon share price rose on Thursday. The governments continued focus on housing    as highlighted in the budget should benefit all manufacturers in the . Analysts say that all cable and wire, lighting and switch gear manufacturers could benefit on housing focus by the government

Finance Minister Nirmala Sitharaman while presenting the interim budget had highlighted that the government will be launch a new housing scheme for the middle class.  This will help those living in rented houses. Other standout feature of the budget speech was the incremental target by the government to give 2 crore more houses under Pradhan Mantri Awas Yojna (Gramin) in 5 years, as three and a half crore homes are already nearing completion.

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All switchgear, lighting, cable and wire manufacturers thereby are likely to benefit. Major manufacturers in Cable and Wires apart from Havells include, Polycab India, Finolex Cables, RR Kabel among others should all benefit. Also others as Crompton Greaves consumer electricals along with Havells, Bajaj electricals are present in the lighting and fans space, while others as V-Guard, Polycab have entered the segment too. Havells into switchgear manufacturing will benefit here too.

The further benefit should accrue from the infrastructure push that is to continues. The Finance Minister announced increasing infrastructure outlay by 11.1% to ₹11.11 Lakh crore, which is 3.4% of the GDP. Most of the Cable & wire and other electricals manufacturers should benefit

Manufacturers in the cooling products segment as Blue Star and even others as Dixon technologies should see benefits from infrastructure and railways expenditure. For railways the 40,000 bogies conversion to Vande Bharat standard to improve safety and convenience for passengers, is positive for all electricals and cooling product demand.

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Even other cooling product manufacturers as Voltas, Hitachi and others could reap benefits. 

However upside for stock prices of Air-conditioner manufacturers will hinge on arriving summer season sales. The peak season sales are crucial to drive their FY25 earnings outlook, said analysts.

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

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