Investing in sectors can assist investors in diversifying their holdings or in seizing opportunities. By distributing their investments among a variety of equities market sectors, investors can reduce the risk of any one sector underperforming the stock market as a whole.
Brokerage firm UBS noted that capital goods, electricity, defense, and industrials should all do well if the BJP-led NDA wins another term. This expectation arises from the BJP’s focus on building up domestic industry and infrastructure throughout its term in office.
Thus, prepare for a massive spike in the stock prices of these five sectors, which you should invest in, if the Bharatiya Janata Party wins the election for yet another term.
Top 3 stocks for infrastructure
- IRB Infrastructure Developers
Leading, largest integrated, and first multinational transport infrastructure developer in India, IRB Infrastructure Developers Ltd. is heavily involved in the Build-Operate-Transfer (BOT) market and takes great pleasure in having contributed to India’s transformation.
- As of May 29, 2024, the stock price of IRB Infrastructure Developers LTD is 72.90 INR.
- It is anticipated that IRB Infrastructure Developers will have annual sales and profit growth of 8.7% and 29%, respectively. The predicted annual growth rate for EPS is 29.1%. They anticipate achieving a return on equity of 8.9% in three years.
- IRB Infrastructure Developers’ shares increased 4.3% to Rs 68.9 in Wednesday’s BSE trading following the company’s announcement of a 45% YoY increase in net profit to Rs 188.9 crore for the March quarter of 2023–2024. The company’s net profit did not increase sequentially.
- PNC Infratech Ltd
Having a wealth of experience and a track record of successfully completing projects in critical infrastructure areas like expressways, highways, bridges, flyovers, airport runways, water supply, industrial area development, and other infrastructure activities, this company is among the top ones in India for infrastructure development, construction, operation, and management. The business has a history of effectively finishing projects in a variety of locations.
- As of May 29, 2024, PNC Infratech Ltd.’s stock price is 520.30 INR.
- It has a buy rating from seven analysts and a strong buy recommendation from five experts.
- Analysts believe that PNCINFRA will trade at 497.88 INR, with a maximum value of 565.00 INR and a minimum value of 400.00 INR.
- PNC Infratech Ltd’s Q4 2023–2024 revenue increased 12.7% over the same period in the previous year to ?2,624.15Cr. In the last three months, PNC Infratech Ltd. has seen a 27.19% increase in revenue on a quarterly growth basis.
- GMR Airports Infrastructure Ltd
A subsidiary of GEPL, GMR Airports Infrastructure Limited (GIL) formerly known as GMR Infrastructure Limited, is involved in the construction, management, and upkeep of airports in addition to providing integrated security solutions.GMR Airports Limited (GAL) manages the airport segments, while RAXA Techno Security Solutions handles the security solutions.
- The stock price of GMR Airports Infrastructure Ltd. is 87.10 INR as of May 29, 2024.
- GMRINFRA (88.20) The infrastructure of GMRA airports is presently trending positively. Keep holding long positions with a daily closing stoploss of 85.57 if you are holding them. If GMR Airport Infrastructure closes below 85.57 levels, traders may open new short bets.
- Pricing of issue: Rs. 210 for each equity share with a face value of Rs. 10.
- In the June quarter of fiscal year 2024, the company declared profit before tax (PBT) of ?112 crore, up from ?89 crore in the same period the previous year. According to GMR Airports Infrastructure, total passenger traffic increased by 26% YoY to 27.0 million in the first quarter of FY24.
Top 3 railway stocks
- Indian Railway Finance Corp Ltd
The government-owned Indian Railway Finance Corporation is responsible for securing loans and capital markets to finance the construction and running of Indian railways. The Indian government owns the bulk of the shares, and the Ministry of Railways is in charge of administration.
- As of May 29, 2024, the share price of IRFC is 180.30 INR.
- The value of IRFC’s stock has steadily increased. IRFC has set the following share price targets: ?284.09 in 2024, ?390.15 in 2025, ?456.50 in 2026, ?530.50 in 2027, ?625.70 in 2028, and ?822.00 by 2030.
- The company is a fantastic long-term investment opportunity with strong growth potential.
- Analysts anticipate that IRFC will increase over both the long and short terms. Technical indications are stable, and the stock’s fundamental direction appears sound. IRFC has set short-term and long-term target prices of Rs 156 and Rs 220, respectively.
- IRCON International
The engineering and construction firm IRCON International Limited is primarily focused on infrastructure projects, such as those involving bridges, highways, railroads, and other structures. They work on projects all over the world and contribute greatly to the growth of transportation infrastructure by providing experience in a variety of fields, including signaling, telecommunications, electrical work, and civil construction.
- The share price of IRCON International is 272.00 INR as of May 29, 2024.
- The stock of Ircon International declines, but its long-term performance is steady. Ircon International’s shares dropped -3.12% on May 9th, 2024, and ended the day at Rs 231. In spite of this, the stock is still outperforming its moving averages and doing well over the long run.
- IRCON’s 2025 share price target ranges from ?310.05 to ?370.15.
- The Q4 earnings growth that these corporations reported set off this rise. IRCON International’s shares surged 8% to a record high of Rs 296 ahead of the company’s expected release of its Q4 earnings today.
- Rail Vikas Nigam
An Indian central public sector company called Rail Vikas Nigam Limited oversees project implementation and the development of transportation infrastructure on behalf of the Ministry of Railways.
- As of May 29, 2024, the share price of Rail Vikas Nigam Limited is 375.30 INR.
- The target future stock price for RVNL may increase to ?425.98 in the coming year. Based on present conditions, a 5-year projection shows that its value may rise to ?1,183.53, and in the next ten years, it could reach ?2,156.39.
Top 3 Defence Stocks
- Bharat Dynamics
Bharat Dynamics Limited, one of India’s producers of missile systems and ammunition, established itself in Hyderabad, India, in 1970.
- As of May 29, 2024, the share price of Bharat Dynamics Limited is 1,544.35 INR.
- Revenue vs. Market: It is anticipated that BDL’s revenue (18.7% annually) will increase more quickly than the Indian market’s (9.4% annually). High Growth Revenue: It is anticipated that BDL’s revenue growth rate of 18.7% annually would not exceed 20% annually.
- Bharat Dynamics Ltd. Share gets a “Buy” rating based on long-term analyst recommendations.
- Hindustan Aeronautics
Bangalore serves as the corporate headquarters of the Indian public aerospace and military firm Hindustan Aeronautics Limited. HAL is one of the biggest and oldest aerospace and defense companies in the world, having been founded on December 23, 1940.
- The share price of Hindustan Aeronautics Limited is 5,062.00 INR as on May 29, 2024.
- Analysts expect that HAL will trade at 4718.15 INR, with a maximum value of 5725.00 INR and a minimum value of 3225.00 INR.
- if HAL shares fall to between ?4,000 and ?4,050, it might be wise to think about purchasing them. In order to control risk, he advises aiming for an upside of ?4,750 and placing a stop loss at ?3,670.
- Mazagon Dock Shipbuilders
Mazagaon, Mumbai is home to the shipyard Mazagon Dock Shipbuilders Limited, formerly known as Mazagon Dock Limited. It produces warships, submarines, offshore platforms, and related support vessels for the Indian Navy and offshore oil drilling.
- The share price of Mazagon Dock Shipbuilders Limited is 3,374.00 INR as on May 29, 2024.
- Wall Street analysts project that MAZDOCK’s average one-year price objective is 2 209.66 INR, with a low of 888.8 INR and a high of 2 974.65 INR.
- With its solid standing in the shipbuilding sector and noteworthy stock performance, Mazagon Dock Shipbuilders is unquestionably a largecap business to keep an eye on. In order to potentially increase their portfolio’s long-term gains, investors could choose to add this stock.
Top 3 Space Stocks
- Data Patterns
Serving the domestic defense product business, Data Patterns (India) Ltd is a provider of defense and aerospace electronics solutions. The corporation provides goods for all military and aeronautical platforms, including those in space, the air, the ground, and the sea.
- Data Patterns (India) Ltd.’s share price is 2,870.00 INR as of May 29, 2024.
- Data Patterns’ income should increase five times between the fiscal years 2024 and 2030 as a result of the company’s pipeline for exports and indigenization.
- Data Patterns declared that its Q4FY24 total revenue of ?195 crore, up 29% sequentially from Q3FY24’s ?151 crore, was achieved. Operating profit (Ebitda) increased by 55% to ?93 crore in Q4FY24 from ?60 crore in the previous quarter. Ebitda stands for earnings before interest, tax, depreciation, and amortisation.
- Bharat Electronics
Bharat Electronics Limited is an Indian government-owned manufacturer of defense and aerospace electronics. Cutting-edge electronic equipment for land and aircraft applications is its principal output. Sixteen PSUs, including BEL, are governed by the Ministry of Defence in India.
Jefferies maintained its “buy” recommendation on BEL after the PSU released its earnings, but it raised its target price for the shares by Rs 45 to Rs 305. According to Jeffreys, BEL will be able to witness double-digit percentage revenue growth over the FY24–FY26 period thanks to its strong order book and pipeline.
Its support zone is Rs 215.
- Apollo Micra System
The pioneer in the design, development, and assembly of custom-built electronics and electro-mechanical solutions is Apollo Micro Systems (AMS), founded in 1985.
As of May 29, 2024, the share price of Apollo Micro Systems (AMS) is 106.85 INR.
- The Price Trend analysis is semi-strong, indicating a likelihood of a short-term price increase for Apollo Micro Systems Ltd. But before you invest, please be sure to look at the Quality and Valuation ratings.
- The Appollo Micro Systems Initial Public Offering (IPO) is a main-board IPO consisting of [.] equity shares with a face value of ?10, totaling up to ?156.00 Crores. The share price of the offering is between ?270 and ?275. Fifty shares is the minimum order quantity.
Top 3 Semiconductor stocks
- Dixon Technologies
Dixon Technology is an Indian company that offers electronic manufacturing services, and it is situated in Noida. It offers contract manufacturing services for TVs, washing machines, telephones, LED bulbs, battens, downlighters, and CCTV security systems to companies like Samsung, Xiaomi, Panasonic, and Philips. In India, it has seventeen production facilities.
- The company has been listed on the BSE and NSE since its 2017 IPO.
- Dixon Technologies (India) Ltd. announced that its Q4 earnings had increased by 24.7% to Rs 98.5 crore.
- Revenue rose 52% to Rs 4658 crore, but EBITDA increased 17.3% to Rs 183 crore.
- Margin fell to 4%, which may have an impact on the profitability of the company going forward.
- Bharat Electronics
Bharat Electronics Limited is an Indian government-owned manufacturer of defense and aerospace electronics. Cutting-edge electronic equipment for land and aircraft applications is its principal output. Sixteen PSUs, including BEL, are governed by the Ministry of Defence in India.
Jefferies maintained its “buy” recommendation on BEL after the PSU released its earnings, but it raised its target price for the shares by Rs 45 to Rs 305. According to Jeffreys, BEL will be able to witness double-digit percentage revenue growth over the FY24–FY26 period thanks to its strong order book and pipeline.
Its support zone is Rs 215.
- CG Power and Industrial Solutions Ltd
Leading worldwide provider of electrical equipment, CG Power and Industrial Solutions Ltd. provides a comprehensive variety of goods and services for the production, transmission, and distribution of power. They provide solutions for utilities, infrastructure projects, and industries with an emphasis on innovation and sustainability, advancing the electrical industry’s efficiency and progress.
- On May 29, 2024, the share price of CG Power and Industrial Solutions Limited is 630.00 INR.
- It is still recommended to buy CG Power & Industrial Solutions’ stock. For investors, this is encouraging since it shows that the business has a great deal of room to grow in the future.
- Shares of CG Power and Industrial Solutions jumped 6.50% to a record high of ?582.80 following the company’s Q4 results that were in line with expectations and a 45% rise in order inflow. YoY revenue growth was 15%, although EBITDA and PBT only slightly increased.