Interim budget 2019 picks: JM Financial is betting on these stocks, should you?

Godrej Properties: The exemption on capital gains of up to two owned houses, which earlier was limited to just one house, is positive for home buyers. Urban allocation for housing has also increased by five percent to Rs 6,853.2 crore. Further, no tax on notional rental on the second self-occupied house is positive for home buyers and no notional rental tax to be paid by developers for two years from the previous one year is positive for developers as well.

Mahindra & Mahindra: A boost in tractor sales due to relief to farmers with respect to direct income transfer of Rs 6,000 per year in three equal installments to small and marginal farmers. Also, Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) allocation has been increased from Rs 550 billion in FY19 BE to Rs 600 billion in FY20 is yet another positive for farm incomes and rural consumption.

GSFC: The fertiliser stock should benefit from increased allocation towards farmers income. GSFC fertiliser segment's revenue is growing at pace of 66 percent YoY to Rs 20.9 billion in the second quarter.

Bharat Electronics: The company's order book is growing at 20 percent YoY to Rs 484 billion in the third quarter in FY19. The increased budget allocation will benefit the company.

Bata India: A boost to consumption through various measures undertaken in the budget with full tax rebate to be granted to individuals whose income is up to Rs 5 lakh and raising of standard deduction to Rs 50,000 from the existing Rs 40,000 will help discretionary spending theme. Bata should benefit from the premiumisation of product portfolio, focus on fast growing categories of sport and expanding store outlets should drive earnings compound annual growth rate (CAGR) of over 15 percent growth over the next three years.