With the Union Budget 2025 around the corner, investors are eyeing potential stock market opportunities that could benefit from upcoming policy measures. The budget is expected to focus on boosting infrastructure, expanding the Production-Linked Incentive (PLI) scheme, and providing tax relief to middle-class households—factors that could drive certain sectors higher.
Bajaj Broking has identified three stocks poised for gains based on their strong fundamentals and technical indicators. If you're looking for pre-budget investment opportunities, here are three stocks to consider.
A hospitality company, Apeejay Surrendra Park Hotels operates upscale and mid-scale hotels under multiple brands across India. Apart from hotels, it has a presence in the food & beverage sector, managing restaurants, nightclubs, and retail F&B brand 'Flurys.'
Buying range: ₹190-200
Target price: ₹235
Upside potential: 21%
Market capitalisation: ₹4,200 crore
Time horizon: 12 months
Post-COVID recovery: The hospitality sector has bounced back significantly, driven by increased domestic and corporate travel.
Diversified presence & expansion plans: The company operates 34 properties with 2,410 keys and is expanding its retail F&B brand Flurys, targeting 120 stores by FY25.
Improving financials: Revenue grew 98% in FY24, with EBITDA margins improving to 33%.
DCX Systems is a key player in the defence and aerospace industry, providing end-to-end solutions such as cable and wire harnesses, electronic sub-systems, and PCB assembly. It serves global clients in Israel, the USA, Korea, and India.
Buying range: ₹355-380
Target price: ₹449
Upside potential: 24%
Market capitalisation: ₹3,987 crore
Time horizon: 12 months
Defence sector focus in Budget: The government is expected to boost domestic defence manufacturing and exports, benefiting DCX Systems.
Order book: The company has a ₹3,000+ crore order book, with recent deals from ELTA Systems (₹154 crore) and Lockheed Martin (₹460 crore).
Debt reduction: The company has significantly cut its net debt from ₹433 crore to ₹69 crore, strengthening its financial position.
Ion Exchange is a player in water treatment and purification, providing solutions across pre-treatment, wastewater recycling, desalination, and drinking water systems.
Buying range: ₹615-660
Target price: ₹780
Upside potential: 23%
Market capitalisation: ₹9,463 crore
Time horizon: 12 months
Government focus on water management: With sustainability and infrastructure spending being key budget themes, Ion Exchange is likely to benefit from increased allocations for water conservation projects.
Robust growth: Revenue grew 21% YoY in H1FY25, with EBITDA margins holding steady at around 11%.
Order book & expansion: The engineering division has secured large EPC contracts, and the chemical division is expanding capacity, ensuring long-term growth.
{Disclaimer: These stocks are recommended by Bajaj Broking, not by Dhanam Online. Investments in the securities market are subject to market risks. Always consult a financial advisor before making investment decisions.}
