Stocks to Buy: The Union Budget presented on February 1 was overall in line with analysts and market expectations. Finance Minister Nirmala Sitharaman maintained emphasis on financial discipline. The government has increased capital expenditure by 9 percent to Rs 12.2 lakh crore.
This is expected to directly benefit the infrastructure and defense sectors. Along with this, focus has also been placed on employment generation. Funds have also been allocated in the budget for emerging sectors like data centres, artificial intelligence, tourism and MSME.
After the budget, three experts have suggested 9 stocks, which are expected to benefit from the announcement of the budget. Siddharth Khemka, Head of Research, Wealth Management at Motilal Oswal Financial Services has advised to buy these stocks.
Apollo Hospitals Enterprises | Target: Rs 9,015
Apollo Hospitals is expected to benefit from several initiatives of Budget 2026. This includes Regional Medical Tourism Hub, Caregiver Training, Accredited Clinic and Rs 10,000 crore Biopharma Shakti Mission. This is expected to increase the number of international patients, expand the hospital network and support clinical research. The company is working on a plan to add 3,660 beds in the next five years.
Mahindra and Mahindra Target: Rs 4,521
Mahindra and Mahindra may benefit from infrastructure capex of Rs 1 lakh crore, incentives for advanced construction equipment and revival of 200 industrial clusters. Along with this, emphasis on farm mechanization and rural productivity will support demand in tractor, construction equipment and mobility segments. The company targets 8x growth in SUVs and LCVs and 3x growth in the farm segment during FY20-30.
Biocon | Target: Rs 460
Biocon is expected to benefit from the Rs 10,000 crore Biopharma Shakti Mission. This mission focuses on biologics, biosimilars and noncommunicable diseases, which aligns with the company’s diabetes and oncology portfolio. The acquisition of Viatris’ biosimilar business further strengthens Biocon’s global presence. A strong recovery in earnings is expected during FY26-28.
Larsen and Toubro Target: Rs 4,500
L&T may benefit from budgetary support related to advanced infrastructure equipment, three dedicated chemical parks and revitalization of 200 industrial clusters. EPC opportunities will increase in infrastructure, hydrocarbon and defense sectors. Order inflows from the Middle East remain strong, with 10-15 per cent annual growth expected over the next five years. Revenue, EBITDA and PAT in the core EPC business are estimated to grow at 16 per cent, 19 per cent and 22 per cent CAGR, respectively, during FY25-28.
Shrikant Chauhan, Head of Equity Research at Kotak Securities, is advising to buy two stocks of Tata Group.
Indian Hotels | Target: Rs 830
Tata Group’s Indian Hotels Company is one of the largest companies in India’s hospitality sector. Due to its strong presence in the mid to premium segment and good positioning in business and leisure destinations, the company can benefit from favorable demand-supply conditions in the hotel sector.
Tata Consultancy Services | CMP: Rs 3,675
Tata Group’s TCS is positioned to be a core partner for clients across their cloud, data and AI needs. Better focus on mega deals, reducing sales slippage and new AI and M&A strategy are being considered positive signs for the company. Initial results have been encouraging.
Devarsh Vakil, Head of Prime Research at HDFC Securities, has suggested some stocks to investors, which can yield strong returns.
Sai Life Sciences | Target: Rs 1,160
Biopharma Shakti Yojana has been proposed in the budget, under which there is a plan to upgrade 3 new NIPERs and 7 existing institutes. Apart from this, a network of more than 1,000 recognized India clinical trial sites will be created. The Indian CRDMO market is expected to grow at a CAGR of 13-15 percent between 2024 and 2029. Sai Life Sciences is well positioned to take advantage of this growth as an integrated CRDMO. Revenue is expected to grow by 20 per cent and EBITDA and PAT CAGR by 28 per cent and 39 per cent respectively during FY25-28.
Syrma SGS Technology | Target: Rs 920
The government has proposed to increase the outlay of the Electronics Components Manufacturing Scheme to Rs 40,000 crore for FY26-27. Syrma SGS is in a strong position to benefit from the scheme with an order book of Rs 6,400 crore by December 2025. The company expects more than 30 percent annual growth in revenue and EBITDA in FY27.
Zensar Technologies | Target: Rs 830
Union Budget 2026-27 shows a big shift from digital first to intelligence first. Emphasis has been laid on simplifying the tax system for AI, semiconductor and IT sectors. This environment is a good fit for Zensar, which is focusing on AI-based solutions, operational efficiency and multi-sector diversification. The company’s strategic growth aligns with the country’s changing digital and industrial goals.
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