Interim Budget 2024: IRFC, Suzlon Energy, IRCON, RVNL shares turn multibaggers since last Budget

About 17 per cent of top 500 stocks on BSE turned up being multibaggers since the Union Budget 2023, with many stocks from sectors related to railways, defence, green energy, PSUs and housing gaining the most, thanks to the government's focus on capex spending and initiatives including 'Make in India'

Shares of Indian Railway Finance Corporation Ltd (IRFC) climbed 441 per cent since February 1, 2023. Suzlon Energy, which manufactures wind turbines, has seen its shares rallying 369 per cent since last Budget. Lender REC Ltd soared 324 per cent while railway stocks Ircon International Ltd and Rail Vikas Nigam Ltd climbed 319 per cent and 305 per cent, respectively, during the same period.

Power Finance Corporation Ltd, SJVN Ltd, Jindal Saw Ltd, JBM Auto Ltd, NBCC (India) Ltd, Housing & Urban Development Corporation Ltd, Cochin Shipyard Ltd, Kaynes Technology India Ltd and Jupiter Wagons Ltd are some of the BSE500 stocks which rallied 250-300 per cent during the same period.

PhillipCapital in its Budget preview noted that among major capex-oriented ministries, railways (71 per cent of budget estimate) was the frontrunner in terms of capital expenditure in the first in April-November 2023, followed by roads (68 per cent), atomic energy (63 per cent), housing (54 per cent) and defence (53 per cent).

"With respect to sectors, spending on defence will continue. Then there will be a tremendous focus on railways as they are important for goods transportation. The India to Europe railway will add to the trajectory. Capital allocation on road infrastructure will be high in addition to expenditure on Capital goods, infrastructure, manufacturing, automobile, healthcare and financial services. I am also very Bullish on the PSU theme," said Shailesh Saraf, smallcase Manager, MD - Dynamic Equities.

NLC India Ltd, ITI Ltd, Mangalore Refinery And Petrochemicals Ltd, Kalyan Jewellers India Ltd, Birlasoft Ltd and Mazagon Dock Shipbuilders Ltd gained 200-250 per cent. Prestige Estates Projects Ltd, Bharat Heavy Electricals Ltd, Zomato Ltd, Apar Industries Ltd, Aurobindo Pharma Ltd, Ramkrishna Forgings Ltd and Adani Power Ltd were among other top BSE500 gainers since last Budget. In total 85 of the 500 BSE500 constituents delivered over 100 per cent return since last Budget.

Nuvama believes the defence capex is expected to be increased by 5–8 per cent YoY with higher allocation. "While on a short-term basis, there could be slight pessimism in the market, medium to long-term outlook remains intact as orders from MoD would continue to flow," Nuvama said.

The domestic brokerage expects robust capex outlay growth of 15–20 per cent YoY for railways, as the focus shifts to rolling stock, safety, new tracks laying, etc over coming years against electrification in last decade. "Even if Railways' capex allocation remains stagnant, we still see higher allocation towards the private sector versus self capex ordering done earlier," it said.

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