Budget 2015: Top five stocks likely to benefit more from housing push by Arun Jaitley

In the budget, once again the finance minister stressed on the ‘housing for all’ by 2022 which will result in all 6 crore houses – 4 crore in rural and 2 crore in urban.

This would be negative for the realty players there would be a sharp rise in the supply, impacting the pricing power. Going forward, the profitability of these companies will remain under pressure.

Some of the companies which operate at low ticket size include - Ashiana housing, Mahindra Lifespace, Sobha developers, Prestige Estate and Purvankara are some of the listed companies which are either in the affordable housing space or small ticket sized.

The budget also mentioned encouraging REITs by providing partial pass through. This could unlock funds for several companies which are already struggling with high debt and weak cash flows. These include companies such as DLF, Godrej Properties, HDIL, Indiabulls Real Estate.

The biggest beneficiaries from these measures would be housing finance companies such as HDFC, Can fin Homes, Indiabulls housing finance, Gruh Finance and Repco India.