Union Budget 2025: Top 3 stocks for 21-24% returns

Bajaj Broking has spotlighted three promising stocks with the potential to deliver 21-24% returns over the next year. The recommendations include Apeejay Surrendra Park Hotels Ltd (Park Hotel), DCX Systems Ltd, and Ion Exchange (India) Ltd, based on their growth potential and technical breakout patterns.

Budget Highlights and Market Expectations

The government is expected to broaden the Production-Linked Incentive (PLI) scheme to include new sectors, aiming to boost domestic manufacturing and economic growth. Bajaj Broking’s pre-Budget note emphasized the need for continued simplification and rationalization of taxes in capital markets. Suggestions include:

Reducing long-term capital gains (LTCG) tax, currently at 12.5%, by 50–200 basis points.

Lowering the Securities Transaction Tax (STT).

Simplifying tax provisions for Alternative Investment Funds (AIFs).

These measures, coupled with streamlined tax rules for financial instruments and Foreign Portfolio Investors (FPIs), could enhance market liquidity and attract foreign investments.

The brokerage also anticipates a rise in capital expenditure (capex), focusing on infrastructure sectors like roads, highways, railways, and defence, to further propel growth.

Top Stock Picks for 2025

1. Apeejay Surrendra Park Hotels Ltd (Park Hotel)

Technical Outlook: The stock is positioned for a breakout, following a base formation above its recent trendline and 20-week EMA.

Target Price: ₹235 (aligned with its previous all-time high).

Buying Range: ₹190-200.

Rationale: Strong consolidation and breakout potential make this a lucrative entry point.

2. DCX Systems Ltd

Technical Outlook: DCX is nearing a breakout from a 14-month range of ₹390-280, indicating a continuation of its uptrend.

Target Price: ₹449 (confluence of prior highs and trendline resistance).

Buying Range: ₹355-380.

Rationale: The stock’s technical strength and upward momentum suggest significant potential for growth.

3. Ion Exchange (India) Ltd

Technical Outlook: The stock is in a strong uptrend, forming higher highs and lows on long-term charts. Recent rebounds from its breakout area confirm bullish momentum.

Target Price: ₹780 (123.6% external retracement of its last decline).

Rationale: Ion Exchange’s robust price action signals a continuation of its growth trajectory.

Investment Takeaway

Bajaj Broking's recommendations align with anticipated market-friendly policies in Budget 2025. With potential tax reforms and a focus on infrastructure development, these stocks could deliver strong returns over the next 12 months. However, investors are advised to consider market risks and consult financial advisors before investing.