Indian Finance Minister Nirmala Sitharaman raised the income tax exemption limit from 0.7 million to 1.2 million rupees as she announced the Union Budget 2025 on February 1st.
The new tax regime is broadly expected to result in higher disposable income for the middle class, potentially leading to a meaningful increase in consumption.
Against such a backdrop, two Indian consumer stocks, Marico and Dabur India, are two names that particularly stand to benefit.
Let’s find out what these two have in store for investors.
Marico Limited (NSE: MARICO)
Marico is a leading name in fast-moving consumer goods that owns a bunch of popular brands including Saffola and Parachute.
Headquartered in Mumbai, the Indian multinational stands to benefit under the new tax regime that focuses on boosting urban consumption.
Marico has a significant presence in urban markets that positions it fairly strongly to capitalize on the expected increase in spending in the country this year.
The Union Budget 2025 is also committed to rural development and agricultural reforms, which may indirectly benefit Marico by improving rural consumption as well.
All in all, India’s annual budget has several initiatives aimed at stimulating economic growth and consumer spending that may serve as meaningful tailwinds for Marico stock.
Shares of Marico Limited are already up some 40% versus their 52-week low but they remain attractive to own also due to the company’s financial strength.
Last week, the consumer goods company said its profit surpassed INR 4 crore as revenue increased more than 15% on a year-over-year basis in Q3.
Note that Marico shares also pay a dividend yield of 0.52% at writing.
Dabur India Ltd (NSE: DABUR)
It’s reasonable to believe that Dabur stock will gain materially under the Union Budget 2025.
The new tax regime is broadly expected to be a blessing for the Indian middle class in terms of disposable income – and when consumers have more money in hand, it’s conceivable that they’ll choose to spend it on health, wellness, and personal care products.
That’s where Dabur India steps in.
It’s one of the largest and most trusted consumer goods companies in India, offering products ranging from personal care to health supplements and food products.
A few of the notable consumer brands this Ghaziabad headquartered firm owns include Dabur Amla, Dabur Honey, Dabur Chyawanprash, and Real.
So, the annual budget’s focus on economic revival and consumer spending could increase Dabur’s overall sales and profitability in 2025.
In its latest reported quarter, Dabur saw its net profit surpass INR 516 crore as revenue jumped 3.0% on a year-over-year basis.
Dabur stock has lost about 20% over the past five months which makes it all the more attractive to own at the time of writing.
(1 Indian rupee=USD 0.011)
The post These 2 Indian consumer stocks are worth buying after budget 2025 appeared first on Invezz
