Four years of Narendra Modi govt: How stocks linked to PM's welfare schemes have performed
The BJP government announced a slew of schemes after it assumed power in 2014 winning 336 Lok Sabha seats out of 543 seats. Work under most of these schemes is still under progress an year ahead of General Election 2019.
By Aseem Thapliyal
Friday, May 25, 2018
Prime Minister Narendra Modi will complete four years on May 26, 2018 as the head of country's first majority government since 1984. The BJP government announced a slew of schemes after it assumed power in 2014 winning 336 Lok Sabha seats out of 543 seats. Work under most of these schemes is still under progress an year ahead of General Election 2019. There are companies which have participated in the implementation of these schemes and thus contributed to the Indian economy's growth story. Here's a look how stocks of some of these firms have moved during the tenure of Modi government.
Pradhan Mantri Gram Sichai YojanaThe scheme was launched on July 1, 2015 and aims to irrigate the agricultural fields and improve water use efficiency to maximise productivity. The Modi government approved Rs 50,000 crore for the implementation of the scheme for next 5 years or up to 2020.
Shakti Pumps: Shakti Pumps (India) is an India-based stainless steel pump manufacturer. The company is engaged in the business of manufacturing various types of pumps and motors. The company offers approximately 1,500 pump products variants that find application in groundwater supply, irrigation, pressure boosting, industrial applications, as well as in fire-fighting systems and pumping applications for domestic and hospitality sectors.
The stock which stood around 196.30 at the time of launch of the scheme has gained 186% since then.
Jain Irrigation: Jain Irrigation which traded around Rs 70 on the launch date of the scheme was trading more than 40% higher at 98.15 level on BSE. The firm provides solutions in agriculture, piping, infrastructure through manufacturing of Micro Irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs. The firm manufactures a range of precision-irrigation products and has approximately 30 manufacturing plants globally.
Deen Dayal Upadhyaya Gram Jyoti YojanaThe scheme was launched on July 25, 2015 with an objective of electric supply feeder separation (rural households & agricultural) and strengthening of sub-transmission and distribution infrastructure including metering at all levels in rural areas. The scheme aims to provide round the clock power to rural households and adequate power to agricultural consumers.
REC: The firm provides finance to power sector. It finances and promotes rural electrification projects all over the country. It provides financial assistance to State Electricity Boards, State government departments and rural electric cooperatives for rural electrification projects as are sponsored by them.
The stock of Rural Electrification Corporation (REC), nodal agency for the scheme, which stood around 142.48 at the time of launch has fallen 20.26% since then.
Atal Mission for Rejuvenation and Urban Transformation
The scheme was launched on May 9, 2015. The mission involves providing basic services such as water supply, sewerage, urban transport to households and build amenities in cities. The purpose of Atal Mission for Rejuvenation and Urban Transformation (AMRUT) is to ensure that every household has access to a tap with assured supply of water and a sewerage connection, increase the amenity value of cities by developing greenery and well maintained open spaces (e.g. parks); and reduce pollution by switching to public transport or constructing facilities for non-motorized transport (e.g. walking and cycling).
Jain Irrigation: The firm provides solutions in agriculture, piping, infrastructure through manufacturing of Micro Irrigation systems, PVC pipes, HDPE pipes, plastic sheets, agro processed products, renewable energy solutions, tissue culture plants, financial services and other agricultural inputs. The firm manufactures a range of precision-irrigation products and has approximately 30 manufacturing plants globally.
The stock of Rural Electrification Corporation (REC), nodal agency for the scheme, which stood around 57 at the time of launch gained 82.45% since then.
Prakash Path- Way to Light - The National LED Programme
The scheme was launched on January 5, 2015 with an aim to distribute LED bulbs and decrease power consumption.
Orient Electric is focused on providing lifestyle electrical solutions which include fans, lighting, home appliances and switchgears. It offers a range of products including air coolers, water heaters, juicer mixer grinders, mixer grinders, toasters, electric kettles, coolers, induction cookers, rice cookers and electric irons. The Company has 100,000 retail outlets, 3500 retailers and distributors, and 153 service centers in India. The stock listed on bourses on May 14, 2018.
Surya Roshni: The firm is a manufacturing company with business interests in steel tubes and pipes, lighting, fans and appliances, and polyvinyl chloride (PVC) pipes. The lighting segment is engaged in the manufacture and sale of different varieties of lamps, fittings, fans, appliances and allied items. The lighting segment offers lighting products, ranging from general lighting service (GLS), compact fluorescent lamp (CFL) and luminaries to light emitting diodes (LEDs).
The stock which was trading at 104.45 level on the launch date has risen 237% since then.
Havells India: It is engaged in manufacturing switchgears, cable, lighting and fixtures, and electric consumer durables. The stock was trading near the 275 level around the launch date and has risen 95% since then.
Bajaj Electricals: The firm is engaged in engineering and projects; power distribution, illumination and consumer durables businesses. The company's business segments consist of lighting; consumer durables; engineering & projects, and others. The lighting segment includes lamps, tubes and luminaries.
The stock which traded around 238.45 on launch date has gained 142% since then.
UJWAL Discom Assurance Yojana (UDAY)The scheme was launched on 20 November, 2015 and aims to obtain operational and financial turnaround of state owned power distribution companies (DISCOMs). It aims to reduce the interest burden, reduce the cost of power, reduce power losses in distribution sector, and improve operational efficiency of DISCOMs.
Power Grid Corporation: The stock is up 62% since November 20, 2015 when it traded at 130.60. Power Grid Corporation of India is a transmission company engaged in the power transmission business with responsibility for planning, implementation, operation and maintenance of Inter-State Transmission System and operation of National and Regional Load Dispatch Centers.
NTPC: The stock which was trading at 134.10 during the launch of UDAY is up 24.90%. NTPC is engaged in the generation and sale of electricity. The principal business activity of the Company is the electric power generation by coal-based thermal power plant.
Swachh Bharat Mission
Swachh Bharat Mission, which was launched on October 2, 2014, aims to ensure clean and hygienic India. The scheme is being implemented by the ministry of urban development and by the ministry of drinking water sanitation for urban and rural areas, respectively.
Somany Ceramics: The firm is a manufacturer and marketer of tiles and offers a range of sanitary ware and bath fittings. The company is engaged in manufacturing ceramic/vitrified wall and floor tiles. The Somany Ceramics stock which stood near 290.65 level at the launch of the scheme has gained 82.55% since then.
Cera Sanitaryware: The firm is engaged in the business of manufacturing, marketing and distribution of sanitaryware, faucetware and trading in tiles and other bathroom products. The stock which stood at 1583.25 level during the launch of the scheme has gained nearly 80% since then.
Kajaria Ceramics: The firm is engaged in the manufacturing and trading of ceramics, polished and glazed vitrified tiles. It offers products, including ceramic wall and floor tiles, polished vitrified tiles, glazed vitrified tiles, and sanitary ware and faucets. The stock which stood at 322.33 on October 2, 2014 has gained 70% since the launch of the scheme.
Nilkamal: The stock which stood at 369.10 during the launch of the scheme has gained 345% since then. The company is engaged in the production of dustbins, water tanks, lifestyle furniture, furnishings and accessories.
HSIL: The firm offers sanitaryware, faucets and glass bottles. Its segments include Building products division and Packaging products division. Its products include sanitaryware, such as water closets, wash basins, pedestals, squatting pans, urinals, cisterns and bidets, among others. The stock which stood at 354.35 level at the time of scheme launch has gained just 2 percent since then.
Smart City Mission The scheme was launched on June 25, 2015 and is aimed at developing 100 cities all over the country making them citizen friendly and sustainable. Under the mission, the government aims to develop smart cities equipped with basic infrastructure and offer a good quality of life through smart solutions.
NBCC: Public sector undertaking NBCC provides civil engineering construction services. It operates through three segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering, Procurement and Construction (EPC). The firm is engaged in real estate development and construction business. The stock which stood around 61.80 at the time of launch of the scheme has gained 58.89% since then.
Sterlite Technologies: Anil Agarwal-promoted Sterlite Technologies is engaged in designing, building and managing smarter digital networks. Its digital networks focused business products, services and software includes optical communication products, network and system integration services and operations support systems (OSS)/business support system (BSS) software solutions.
It has bagged smart cities projects in Gandhinagar and Jaipur. The stock which stood at 72.80 at the time of launch of scheme has gained 322% since then.
KEC International: The firm provides end-to-end solutions in power transmission and distribution business. It also manufactures electric power transmission towers. The stock which stood at 183.30 around the launch date has gained more than 187% since then.
The digital India scheme was launched on July 1, 2015. The scheme's primary objective is to deliver government services to citizens electronically by improving online infrastructure and by increasing Internet connectivity.The vision of Digital India programme is to transform India into a digitally empowered society and knowledge economy.
TVS Electronics: The firm is engaged in manufacturing of computer printers, trading of computer printers/keyboards and telecommunication parts, distribution of mobile phones, and offering services. It also makes electronic cash registers, swipe cards and point of sales machines. The stock which stood at 44.35 around the launch of the scheme has gained 705% since then.
Intense Technologies: The firm offers computer programming, consultancy and related activities. The company's operations relates to software product development, solutions and related services. The stock which stood around 61.95 at the launch of the scheme has gained 4.76% since then.
Vedavaag Systems: The firm is engaged in providing information technology sales and services. The company's business operations are divided into four verticals: e-governance solutions, knowledge center solutions and citizen service delivery platform management, new services e-integration. The stock which stood around 21.45 during the launch of the scheme has gained 105% since then.
PM Awas Yojana
The scheme aims to achieve housing for all by 2022. Under the PMAY, the Modi government aims to provide about five crore affordable homes to the people belonging to EWS and LIG categories. It also plans to build two crore homes in urban area and three crore in rural areas across the country. Under the scheme, the government provides financial assistance to the poor home buyers, interest subsidy on home loan and direct subsidy on homes bought under the scheme. The scheme was launched on June 25, 2015.
Can Fin Homes: Can Fin Homes is a housing finance company which offers housing loan to individuals; housing loan to builders/developers, and loan against property. Its loan portfolio includes housing loans and non-housing loans. The stock which stood around 149.28 during the launch of the scheme has gained 140.4% since then.
Housing And Urban Development Corp: The public sector firm provides long-term finance for construction of houses for residential purposes or finance or undertakes housing and urban development programs in the country. It finances or undertakes, wholly or partly, the setting up of the new or satellite towns and industrial enterprises of building material. The stock got listed on bourses on May 19, 2017. The stock is down 20% since then.
Gruh Finance: Housing finance company GRUH Finance provides home loans to individuals, and families for purchase, construction and extension. The firm operates through housing finance business segment. GRUH also provides loans for repair and renovation of houses and home loans to families in the self-employed category. GRUH offers loans for purchase and construction of non- residential properties (NRP) and offers mortgage loans against existing residential and commercial properties. The stock which stood around 256.25 during the launch of the scheme has gained 166% since then.
Prestige Estates: Prestige Estates Projects is engaged in the business of real estate development. The firm's principal products/services include development and construction of properties, leasing of commercial properties and share of profit /loss from partnership firm. The stock which stood around 250.15 during the launch of the scheme has gained 9% since then.
Namami GangeThe scheme was launched on July 10, 2014. It aims to clean and protect the Ganga river in a comprehensive manner.
VA Tech Wabag: The company concentrates on treatment plants including recycle and reuse. The stock which stood around 675.53 during the launch of the scheme has lost 32% since then.
NBCC: Public sector undertaking NBCC provides civil engineering construction services. It operates through three segments: Project Management Consultancy (PMC), Real Estate Development, and Engineering, Procurement and Construction (EPC). The firm is engaged in real estate development and construction business. It bagged a project from the government to carry out work on condition assessment & feasibility study and entry level activities under National Mission for Clean Ganga (NMCG) for all towns and cities of Bihar on the bank of river Ganga. The stock which stood around 61.80 at the time of launch of the scheme has gained 58.89% since then.
Pradhan Mantri Fasal Bima Yojana
The scheme which was launched on October 11, 2014 involves providing insurance cover to rabi and kharif crops and financial support to farmers in case of damage of crops.
The New India Assurance Company: The Maharashtra-based public sector insurer is in the non-life insurance space. NIA is also deals in fire, marine, motor and health insurance. The stock got listed on November 13, 2017 and is down 1.5% since then.