Union Budget 2024: Expected Impact on Agriculture Sector Stocks

The Union Budget 2024, unveiled by Finance Minister Nirmala Sitharaman, signifies a transformative push towards revitalizing India’s agriculture sector. With an allocation of Rs 1.52 lakh crore dedicated to agricultural initiatives, the budget focuses on strengthening infrastructure, integrating technology, and encouraging natural farming practices. These measures are expected to have a profound impact on the stocks and shares of companies operating in the agriculture sector

For our readers, young farmers and members of KhetiGaadi this could be an interesting opportunity. Let’s explore the anticipated trends, key players, and investment opportunities within this domain.

ITC Limited (NSE: ITC): As of July 2024, ITC’s stock is trading at around INR 490. The company’s strong presence in the agricultural and food processing sectors makes it a prime candidate to benefit from increased infrastructure spending. Analysts expect a positive trend with a potential price target of INR 500 in the next 12 months.

Godrej Agrovet (NSE: GODREJAGRO): Currently trading at INR 830, Godrej Agrovet is a leading player in the agri-business sector. The company’s focus on animal feed, crop protection, and palm oil plantations aligns well with the budget’s initiatives. The stock is expected to see a positive trend, with projections reaching INR 900.

Nagarjuna Fertilizers & Chemicals (NSE: NAGAFERT): At INR 11.50, Nagarjuna Fertilizers is a key player in providing fertilizers and agri-inputs. The focus on digital infrastructure and technology in agriculture is likely to enhance the company’s operational efficiency and market reach. A positive trend is expected, with a target of INR 15.00

UPL Limited (NSE: UPL): Currently priced at INR 540, UPL is a global leader in agrochemicals and has been investing in sustainable farming solutions. The government’s focus on natural farming is expected to drive demand for UPL’s eco-friendly products, with a projected stock price target of INR 600.

Coromandel International (NSE: COROMANDEL): Trading at INR 1585, Coromandel International is involved in fertilizers, crop protection, and specialty nutrients. The company’s emphasis on sustainable agriculture aligns with the budget’s priorities, and analysts expect the stock to trend positively, reaching INR 1,600.

Rallis India (NSE: RALLIS): At INR 340, Rallis India is a major player in the agrochemicals sector, offering a wide range of pesticides and fertilizers. The emphasis on increasing crop yield and quality through technology is expected to boost the company’s sales, with a potential stock price target of INR 400.

Bayer CropScience (NSE: BAYERCROP): Trading at INR 6690, Bayer CropScience is a leading name in crop protection and biotechnology. With a strong portfolio of seeds, fertilizers, and pesticides, the company is well-positioned to benefit from increased agricultural activities. Analysts forecast a positive trend, reaching INR 6800.

Mahindra & Mahindra (NSE: M&M): Currently priced at INR 2820, Mahindra & Mahindra is a leader in the tractor and farm equipment segment. The company’s innovative and efficient solutions align with the government’s modernization goals, making it a top pick for investors. The stock is projected to reach INR 3000.

Escorts Limited (NSE: ESCORTS): Trading at INR 4,100, Escorts Limited is another major player in the agricultural machinery sector. The focus on mechanization and technology adoption in farming is expected to drive demand for the company’s products, with a potential stock price target of INR 4400.

EID Parry (NSE: EIDPARRY): At INR 750, EID Parry is a leading player in the sugar and distillery industry. The company’s diversified operations and focus on efficiency improvements align well with the government’s agricultural policies, with a potential stock price target of INR 800.

Dalmia Bharat Sugar (NSE: DALMIASUG): Trading at INR 390, Dalmia Bharat Sugar is a key player in the sugar sector, benefiting from its strong operational capabilities and government support for the industry. The stock is expected to trend positively, reaching INR 480.

In conclusion, the Union Budget 2024 presents a favourable landscape for companies operating in the agriculture sector. With substantial investments and policy support, the sector is poised for growth, offering lucrative opportunities for investors seeking exposure to India’s agricultural transformation.

Disclaimer:

The information provided in this article is for educational and informational purposes only and should not be construed as investment advice or a recommendation to buy or sell any stocks mentioned. Investing in stocks involves risks, including the potential loss of principal. It is crucial to conduct thorough research and seek guidance from qualified financial advisors or investment experts before making any investment decisions. The authors and publishers of this article do not hold any responsibility for any losses or damages incurred as a result of investing in the stocks discussed. Readers are advised to exercise caution and diligence when investing in financial markets. However, if you find the information useful and make profits out of it, do not forget to let us know.

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