Union budget 2013-14 expectations Pushkaraj Jamsandekar MMS - Finance Contact - +09869139507 Email - pushkarajjamsandekar@yahoo.com Perception Research & Advisory (Grey Research)

1. Date - 15th April 2013
Budget Expectations
2013-14
Sector
Impact
Chances
-
Auto
Negative
High
There is not much excitement at the moment in automobile sector. The
beginning of FY13 is pretty good for auto companies but to check the current
scenario, there seems to be a remarkable weakening. We expect a marginal hike
in excise duty for auto industry and a strong chance for a Duty hike on diesel
vehicle. The expectations of these changes are very probable which would result
in further weakening of auto mobile sector at least for the first two quarters of
FY14.
Sector
Impact
Chances
-
Oil and Gas
Neutral
May be
The government has already taken steps to make the refineries self competent
(No Subsidiaries). The government has plans to increase the diesel price in every
coming month by 50 paisa to remove total subsidiary on diesel. Even the
additional duties on diesel vehicles would positively support the refinery
companies. We expect that in addition to that budget may more focus on Export
parity on refined products against trade parity.
Sector
Impact
Chances
-
Power
Neutral
Low
The overall performance in the Power Sector for FY13 is not impressive or we
can say that it’s negative. The low availability coal and price hike in fuel is the
major concern for power generation companies. We are expecting that for the
relief of power generation companies the budget may extend their tax holiday
from 10 years to 15 years. There is a low chance of this expectation in budget.
Sector
Impact
Chances
-
Banking
Positive
High
Control on inflation numbers and increase in capital expenditure indicated a way
out from the dark for the banking sector. There is a remarkable growth seen in
the advances of banking sector companies on qoq bases for FY13. We expect
that this budget allows PSU banks to increases their authorized capital up
20000cr. In addition to that we expect that to fulfill the requirement of long
term funding, budget may allow banks for tax free infrastructure bonds or some
other provisions for long term funding which support capital intensive industries
like textile and infrastructure.

2. Sector
Impact
Chances
-
Infrastructure
Positive
High
Pushkaraj Jamsandekar
MMS - Finance
Contact – +09869139507
Mail ID – pushkarajjamsandekar@yahoo.com
Perception Research & Advisory
Infrastructure, one of the widest concepts is broadly divided into two types.
First, economic infrastructure and second is social infrastructure. The economic
infrastructure broadly covers four major sectors -transportation (utility), power,
telecom and water irrigation while, social infrastructure covers most important
sector -The real estate and construction of judicial departments. The major
concern of the companies which are working for these sectors are debt portion
on their balance sheet. The drop in interest rate and positive budget for banking
sector should definitely boost the infrastructure ahead. We expect some more
tax relaxation on infrastructure sector and benefits for key driver of the sector.

3. Investment Criteria & Disclaimer
Rating
Low Risk
Medium Risk
High Risk
Buy
Over 15 %
Over 20%
Over 25%
Accumulate
10 % to 15 %
15% to 20%
20% to 25%
Hold
0% to 10 %
0% to 15%
0% to 20%
Sell
Negative Returns
Negative Returns
Negative Returns
Risk Description
Predictability of Earnings / Dividends / Price Volatility
Low Risk
High predictability / Low volatility
Medium Risk
Moderate predictability / volatility
High Risk
Low predictability / High volatility
Company & Analyst Details
Pushkaraj Jamsandekar
Perception Research & Advisory (Grey Research)
MMS - Finance
Capital Market – Equity Investment
Contact - +09869139507
perception.research@yahoo.com
Email ID - pushkarajjamsandekar@yahoo.com
https://www.facebook.com/pages/Grey-Research/475908969095732
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Source: Perception Research