Best stock picks from Credit Suisse for Union Budget 2015-16

Best Stock picks from Credit Suisse for Union Budget 2015-2016Best stock picks from Credit Suisse for Union Budget 2015-16

Last week, Credit Suisse, global Investment Bank released a report which talks about the expected strategy of the Govt of India in Union Budget 2015-16 and what are the best stocks which would benefit from such budget. I thought of sharing the summary and the top stocks which it recommended. What are the best stocks which are recommended by Credit Suisse? How do they justify such recommendations with reasons?

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What does the Credit Suisse report say about Union budget 2015-16?

  • Credit Suisse says National Highways, Railways, Rural Roadways, Rural Housing, Urban Housing etc. would be the focus of spending from Govt. of India.
  • Credit Suisse expects that there would be heavy spending on Infrastructure, Defence, Manufacturing etc. which would have medium to long term impact. In short term it may not have much impact.
  • Currently, Construction share of GDP is at low. Credit Suisse also expects that construction to pick-up from low levels as Govt. of India is working by clearing regulatory blocks and issuing EPC contrats. This would improve construction activities.
  • Also cement demand growth in India is expected to grow as Govt. of India spending on roads and housings is expected to increase.
  • Some of these strategies indicated by Credit Suisse would definitely have impact, however I am not sure how they would impact on each stock.

Best stock picks from Credit Suisse for Union Budget 2015-16

Some of the below stocks are indicated by Credit Suisse as best and top stocks to buy during Union Budget 2015-16.

1) L&T – Current price – Rs 1705 and Target – Rs 1,975

2) Axis Bank – Current price – Rs 565 and Target – Rs 680

3) Ultratech Cement – Current price – Rs 3,143 and Target – Rs 3,900

4) Maruti Suzuki – Current price – Rs 3,609 and Target – Rs 4,000

5) Asian Paints – Current price – Rs 862 and Target – Rs 1,020

6) Shriram Transport – Current price – Rs 1,088 and Target – Rs 1,400

7) Havells – Current price – Rs 281 and Target – Rs 365

Also Read: Which stocks to buy during fall in Crude Oil Prices in India?

8) IRB – Current price – Rs 247 and Target – Rs 315

9) Kajaria Ceramics – Current price – Rs 701 and Target – Rs 785

10) JK Lakshmi – Current price – Rs 408 and Target – Rs 445

11) Sadbhav Engineering – Current price – Rs 260 and Target – Rs 320

Conclusion: I do not say that these are best stocks. However, I liked the strategies indicated by Credit Suisse and I feel they would work in the near term. We cannot say whether these stocks to be purchased before or after Union Budget 2015-16 as it all depends on investor sentiments.

Disclaimer: I do not hold these stocks and neither I would be buying them in near future.

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Best stock picks from Credit Suisse for Union Budget 2015-16


  • shiv anand

    Hi Suresh,
    I have a offtopic question.
    How short tetm debt funds are taxed if invested earlier to changes in the taxation previous year

    • If you redeem your debt mutual fund units before 3 years (short term), the profits are fully taxable. Means you need to add the profits to your taxable income and pay the income tax in the year which you are selling. E.g. Sreenivas purchased X debt mutual fund (growth) in Apr-2012 for Rs 5,00,000 and sold in Feb-2015 for Rs 5,10,000. Since the time frame is < 3 years, the returns of Rs 10,000 added to Sreenivas taxable income and tax needs to be paid based on the tax slab

  • Abdul

    Dear suresh sir, Can you give me some good mutual fund and stocks to enter now for 10 year plan our children future long term. i will be very thank ful to you . woiuld like to invest 10 lackhs total amount

    • Abdul, You can look in these mutual funds. 1) Large cap – HDFC Top-200 / ICICI Pru focussed blue chip fund 2) Mid-cap – HDFC Mid-cap opps fund / Franklin India smaller co’s / SBI Midcap fund 3) Balanced – You can check HDFC Prudence / ICICI Balanced fund. I would not advice specific stock recommendations

  • Sniper

    Shriram Transport target seems wrong ?

  • Raviraj shah

    Great article and knowledege sharing
    I am just wonder for shriram transport current price and target
    do really that much scope for this stock ??
    Kindly guide

  • nirav shahanand

    @ 6) shriram transport , sir u need to do some correction in target. Its showing 11400 instead of 1400.

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