Stocks to Benefit from Modi’s Vehicle Scrapage Policy

The advantage of Government is that, they can Pass Laws to Boost Businesses & Taxes. Read Policy here

The policy will help to remove the Unfit vehicles from the Indian Roads, Owners can choose to Scap their vehicles to get Waiver in Registration Fees for the new vehicle. The scrapage can also give another Incentive to the Owner & Recycled Raw Material for the Auto Manufacturer. Starting in Oct 2021 It is implemented in Phased manner to help the Covid impacted auto professionals.

This policy would benefit in the following ways:

  • Reduced Pollution to the Environment
  • Boosted Sales to Vehicle, Auto-Component Manufacturers
  • Boosted Sales to EV Segment
  • Increased Revenue to Banking & Financial Organizations
  • Increased Revenue to Insurance Companies
  • Increased Revenue to Government in Taxes, Registration Fees etc.
  • Increased Raw Material resourcing through Old Vehicle Scrapage
  • Boosted Investments to India
  • More Employment to Car Sales, Service, Banking, Marketing people

So this is a win-win-win kind of situation to all & entire economy! It is like a Magic Switch which can be pressed anytime to boost economy. They pressed it now!

MULTIBAGGERS 2021 TO BENEFIT FROM VEHICLE SCRAPAGE POLICY

  • TATA MOTORS, MARUTI, MAHINDRA, ASHOK LEYLAND are the largecaps to benefit from these. But we are not interested in largecaps as they are bluechips already & multifold returns not possible.
  • ICICI Lombard, New India Assurance to benefit from Insurance business
  • OLECTRA Greentech to benefit from this which was our old multibagger recommendation gained 100%.
  • MUTHOOT CAPITAL, BAJAJ FINANCE to gain from new vehicle financing
  • AMARARAJA BATTERIES from the battery business
  • MRF, JK TYRES, BKT, APOLLO TYRES to gain from the Tyre business [EV or not, Tyre is required]
  • BOSCH, MOTHERSON SUMI, MENON PISTON from the auto part business
  • RAJRATAN GLOBAL WIRES from the steel wire segment used in Tyres

We are releasing a unique hidden gem multibagger from this sector in upcoming weeks.

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