CDSL, Kaveri Seeds in focus post Budget 2024 proposals: SAMCO Securities

India Budget 2024 impact: Shares of Kaveri Seeds and Mangalam Seeds zoomed up to 13 per cent after FM Nirmala Sitharaman proposed measures for the sector.

Shares of digital records providers and agriculture were in focus after the Finance Minister Nirmala Sitharaman in her India Budget 2024 propsoals encouraged digitalistaion of land records.

CE Info Systems stock gained 1.5 per cent at Rs 2,293 in intra-day deals, on volumes of around 14,000 shares on the BSE. Meanwhile, Genesys International and CDSL were down 0.5 per cent each at Rs 632 and Rs 2,778 having recovered from their respective day's low of Rs 626 and Rs 2,769.

Similarly, shares of agricultural products such as Kaveri Seed Company zoomed 13.5 per cent to a 52-week high of Rs 1,099.95 on the BSE. At 12 noon, the stock traded with a gain of 8.2 per cent at Rs 1,047 on trades of around 78,000 shares as against the two-week average volume of around 11,000 shares. In comparison, the S&P BSE Sensex was down 0.2 per cent at 80,320 levels.

Mangalam Seeds has zoomed 9 per cent to Rs 269 on volumes of around 21,000 shares on the BSE. 

Here are expert views on the Budget proposal for these sectors.

T Manish, Research Analyst, SAMCO Securities

The Finance Minister announced improvements in the agriculture industry by digitising public infrastructure for their lands within three years for 6 crore farmers in partnership with states. This move is likely to benefit companies like CDSL, CE Info Systems, Genesys etc.

Finance Minister Nirmala Sitharaman also announced research-based setups for raising productivity and developing climate resistant crops. "Providing 109 climate resistant crops in 32 categories to be developed and released," FM Sitharaman said while unveiling Modi 3.0 Budget 2024.

In addition to the interim budgets' announcements about the Atmanirbhar Oilseeds Abhiyaan, a strategy will be formulated to achieve atmanirbharta for oilseeds such as mustard, sesame, sunflower, groundnut and soybean.

Companies like Kaveri Seeds, Dhanuka Agritech are likely to be the beneficiaries of the above move.

Finance Minister Nirmala Sitharaman announced about extending finance to Shrimp production and marketing for overall development of the industry. Direct beneficiaries being Waterbase, Avanti Feeds, Apex Frozen Foods.

Sidhhesh Mehta, Research Analyst, SAMCO Securities

The Skilling Program will train 20 lakh youth over five years through industry-designed courses, enhancing employability and addressing skill gaps. These initiatives will reduce unemployment, increase disposable income, and stimulate economic growth, promoting a more inclusive and skilled workforce. This is a positive for NIIT Ltd and Aptech.

Divyam Mour, Research Analyst , Samco Securities

The Finance Minister's allocation of Rs 26,000 crore for highway development in Bihar, including the construction of a two-lane bridge over the Ganga and the development of highways like the Patna-Purnea Expressway and Buxar-Bhagalpur Expressway, will greatly benefit highway construction companies such as KNR Construction, and PNC Infratech, etc. This development will also boost cement demand, benefiting producers like Ultratech, Adani Cement, India Cement, and JK Cement.