45 stocks turned multibaggers since last Budget; where could FM Sitharaman create the next winners?

Indian equities have had a mixed run since the last Union Budget ’25, yet as many as 45 stocks have emerged as multibaggers during this period, according to Ace Equity data. These stocks came from diverse corners of the market, including smallcaps and select largecaps.

At the top of the return chart sits Midwest Gold, which has delivered gains of over 3,300% since the last Budget. Infrastructure-focused names have featured prominently, with GHV Infra Projects rising more than 700%, while metals and materials stocks such as Synthiko Foils and Gujarat Natural Resources have posted returns of over 600% and 470%, respectively.

Meanwhile, the rally has not been limited to microcaps. Well-known names such as Hindustan Copper, National Aluminium Company and MCX have more than doubled over the period, aided by firm commodity prices, stronger balance sheets and renewed investor interest in public sector stocks. Auto- and engineering-linked counters, including Force Motors and Lumax Auto Technologies, have also figured among the top performers.


The previous Budget reinforced the government's commitment to capital expenditure, especially in infrastructure, defence and manufacturing. As the market heads into another Budget, expectations are more tempered. Brokerages broadly agree that the scope for a large fiscal stimulus is limited, but targeted measures could still shape sectoral performance.

What to expect from the Union Budget 2026?

Jefferies sees the government continuing on the path of fiscal consolidation, albeit at a slower pace, with FY27 deficit seen around 4.2-4.4% of GDP. Government capital expenditure is expected to grow in double digits, with defence likely to take priority. Renewable energy, electronics manufacturing services, consumer durables and defence-linked stocks could benefit depending on allocations under schemes such as PM Kusum, PLI and any pay commission-related announcements.

The brokerage also flags the possibility of a large RBI dividend once again cushioning fiscal maths, while any relaxation in capital gains taxation for select foreign investors, though not a base case, could lift sentiment.

A sharper push in defence capex, potentially growing over 20%, would be a clear positive for defence PSUs and contractors, while incentives linked to affordable housing and insurance could support lenders and life insurers.

Motilal Oswal believes limited expectations themselves create room for positive surprises. It expects fiscal discipline to broadly hold, but sees the government focusing capex on strategically important sectors such as defence, infrastructure, power, electronics and housing. Potential beneficiaries could include large engineering and infrastructure names, defence manufacturers, power and capital goods companies, select consumer discretionary plays and financials exposed to housing finance, MSMEs and capital markets.

Emkay Global, however, strikes a more cautious note, calling the Budget a likely low-impact event for equities. It expects fiscal deficit to remain near 4.3% of GDP, limiting fresh spending impulses. In this scenario, sector selection becomes crucial, with Emkay favouring defence, railways, power, and select auto ancillaries, while being selective within capital goods and avoiding road EPC plays.

Which stocks to bet on this year?

Looking ahead to FY27, brokerages believe the market's next phase will be driven less by broad liquidity and more by selective sectoral bets shaped by the Budget's policy signals. While expectations remain modest, analysts say even targeted announcements on capital expenditure, defence, energy transition or consumption could still move specific stocks meaningfully.

Motilal Oswal has highlighted a broad list of 35 stocks that could benefit if Budget expectations play out. These include large engineering and capital goods players such as L&T, ABB, Siemens, Hitachi, Siemens Energy and KEC, defence-focused names like Bharat Electronics, Bharat Dynamics and HAL, and power and energy stocks including NTPC, Tata Power, GAIL, Petronet LNG, IGL, Mahanagar Gas and Gujarat Gas.

The brokerage also sees potential upside in building materials and cables through UltraTech Cement, JK Cement, Polycab, KEI and Crompton, as well as consumer and jewellery plays such as Titan and PN Gadgil.

Motilal Oswal has also flagged opportunities in financials and real estate, naming Niva Bupa, select asset management companies and registrar and transfer agents, and housing-linked developers such as Brigade, Prestige, Sobha, Lodha and Godrej Properties.

Other brokerages remain more cautious but broadly aligned on themes. Jefferies expects defence-led capex, renewable energy and electronics manufacturing to remain in focus, while Emkay Global believes stock-specific selection in defence, railways, power and EMS will matter more than headline Budget numbers.