Stocks to Watch Post Budget 2025: Jewellery, FMCG, GR Infra, Happiest Minds & More
FMCG: The Indian stock market witnessed high volatility on Union Budget 2025 day, following a four-day rally. The Nifty 50 opened strong on the special Saturday trading session (February 1) but faced turbulence as Finance Minister Nirmala Sitharaman presented the budget. Despite a late-session recovery, the Nifty slipped 26 points to close at 23,482, while the Sensex edged up 5 points to 77,506.
With key budgetary announcements influencing various sectors, here are some stocks to watch in the coming days:
Jewellery Stocks in Focus
Jewellery stocks will likely gain traction after the government announced a reduction in customs duty on jewellery imports. The move aims to make gold and diamond jewellery more affordable, boosting domestic demand. Furthermore, the income tax exemption for earnings up to ₹12 lakh is expected to increase disposable income, leading to higher spending on luxury and discretionary items, including jewellery.
Key Impact:
- Lower import costs could improve profit margins for jewellery retailers.
- Increased purchasing power among middle-class consumers may drive demand for gold and diamond jewellery.
FMCG, Consumer Durables & Auto Stocks Gain on Tax Relief
The FMCG, consumer durables, and auto sectors saw renewed investor interest post-budget. With a higher income tax exemption limit, households are expected to have more spending capacity, benefiting companies in these sectors.
Hero MotoCorp, a key player in the auto industry, reported a 2% rise in January sales, with domestic sales slightly declining while exports surged by 141%. The additional disposable income among middle-class consumers may further boost demand for two-wheelers and passenger vehicles.
Key Impact:
- FMCG and consumer durable companies may see higher sales volumes as consumer spending rises.
- Auto stocks like Hero MotoCorp could witness a demand uptick due to increased affordability.
Happiest Minds Technologies Expands in the Middle East
Happiest Minds Technologies announced the acquisition of Gavs Technologies Ltd.’s Middle East business for $1.7 million. The deal, expected to be finalized by March 15, 2025, includes acquiring InnovazIT Technologies LLC (Dubai), Gavs Technologies LLC (Oman), and Gavs Technologies Saudi Arabia.
This acquisition strengthens Happiest Minds’ presence in the growing Middle Eastern IT market and provides access to new clients and revenue streams.
Key Impact:
- Increased global footprint and potential revenue boost.
- Strengthening relationships with customers in the Middle East.
Hazoor Multi Projects Plans 500 MW Solar Project
Renewable energy player Hazoor Multi Projects has proposed a ₹2,500 crore investment in a 500 MW solar project in Andhra Pradesh. The Andhra Pradesh government has assigned NREDCAP to oversee the project, with a detailed project report (DPR) in progress.
Key Impact:
- Strengthening the company’s position in India’s fast-growing renewable energy sector.
- Positive sentiment for investors eyeing green energy stocks.
MOIL Boosts Production and Raises Prices
State-owned manganese producer MOIL saw a 17% increase in January sales, reaching 1.57 lakh tonnes. Additionally, the company raised ore prices, with manganese content of 44% and above seeing a 3.5% hike, while lower-grade ores increased by 8.2%.
Key Impact:
- Higher manganese prices could increase MOIL’s revenue.
- Strong sales figures indicate rising demand for manganese, a key raw material for steel production.
Anant Raj Reports Strong Q3 Earnings
Real estate and data center firm Anant Raj posted a 55% rise in net profit to ₹110 crore in Q3FY25, while revenue jumped 36.2% to ₹534 crore. The strong performance was driven by high demand for residential projects and data centers.
Key Impact:
- Strong real estate demand supports continued revenue growth.
- The data center business offers high growth potential.
GR Infraprojects Faces Revenue Decline Despite Profit Growth
Infrastructure giant GR Infraprojects reported a 7.8% rise in net profit to ₹261.7 crore in Q3FY25. However, revenue fell 20.6% to ₹1,694.5 crore, and EBITDA margins declined from 23.8% to 21.8%.
Key Impact:
- Revenue decline may impact future growth projections.
- Margins remain strong despite sectoral challenges.
Neogen Chemicals Posts 10x Profit Growth
Specialty chemicals player Neogen Chemicals delivered a tenfold jump in net profit to ₹10 crore in Q3FY25, up from ₹1 crore a year earlier. Revenue grew 22.5% to ₹201.4 crore, with EBITDA margins improving to 17.2% from 12.3%.
Key Impact:
- Strong earnings indicate growth potential in the specialty chemicals sector.
- Improved margins enhance profitability and investor confidence.
Aarti Industries Reports Weak Earnings
Aarti Industries saw a 63% YoY drop in net profit to ₹46 crore in Q3FY25, despite a 6% rise in revenue to ₹1,840 crore. The decline in profitability was attributed to higher input costs and subdued demand.
Key Impact:
- Cost pressures could continue impacting margins.
- Revenue growth offers some stability despite profit decline.
Financial Ratios & Key Metrics
| Stock | Revenue Growth (%) | Net Profit Growth (%) | EBITDA Margins (%) | Key Development |
|---|---|---|---|---|
| Hero MotoCorp | -2% (Domestic) / +141% (Exports) | N/A | N/A | Sales up 2% in Jan 2025 |
| Happiest Minds | N/A | N/A | N/A | $1.7M acquisition in the Middle East |
| Hazoor Multi Projects | N/A | N/A | N/A | Plans 500 MW solar project |
| MOIL | 17% | N/A | N/A | Manganese ore price hike |
| Anant Raj | 36.2% | 55% | N/A | Strong Q3 earnings |
| GR Infraprojects | -20.6% | 7.8% | 21.8% | Revenue decline but profit rise |
| Neogen Chemicals | 22.5% | 900% | 17.2% | 10x profit growth |
| Aarti Industries | 6% | -63% | N/A | Decline in profitability |
Final Thoughts
The Union Budget 2025 has created significant opportunities across jewellery, FMCG, auto, infrastructure, chemicals, and renewable energy sectors. Stocks in these sectors will remain in focus as investors analyze how tax reforms and economic policies influence market sentiment.
With increased consumer spending power, FMCG and auto stocks stand to benefit, while infrastructure and renewable energy projects gain momentum from policy support. As the market digests these developments, investors should watch for sector-specific trends and company earnings in the coming quarters.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.