Indian Economy share price target

Some fiscal space has been built into the FY24.Budget, to deal with higher spending requirements from external shocks, like higher outlay than budgeted for fertiliser subsidy, according to finance secretary Mr T.V. Somanathan. Gross tax receipts could grow at 11%, against 10.5% budgeted, and there could be savings of about Rs50bn in the Rs10trn capex budget.

The FY24 Budget is inclusive in its orientation, provides a 33% increase in public investment, reduces income tax rates for all taxpayers choosing the new (simpler) tax regime, and yet reduces the fiscal deficit to 5.9% of GDP for FY24 from the current fiscal year’s conservative estimate of 6.4%.

Progressive Union Budget FY24 augments capex cycle further along with boosting manufacturing and consumption, while continuing on the fiscal consolidation path. Union Budget FY24 was pro-growth and provided focus on capex while ensuring inclusive developments. The Budget provided tax stimulus largely via direct tax proposals and a few indirect tax proposals which should be positive for consumption, and may boost manufacturing and exports.

Sun Pharmaceutical’s (Sun) Q3FY23 performance was largely in line with our estimates. Consolidated revenue grew 12.9% YoY to Rs111.4bn (I-Sec: Rs110.5bn) driven by US and emerging market sales. EBITDA margin stood at 26.0% (I-Sec: 26.6%).