Union Budget 2025: Jubilant Food, Zomato, DMart, Bikaji among consumption stocks in focus as income tax cuts boost spending power

Consumption sector stocks are in focus following Budget 2025 announcements aimed at significantly increasing disposable income. Key measures include no income tax payable on income up to ₹12 lakh, a ₹70,000 tax reduction for incomes of ₹18 lakh, and savings of over ₹1.1 lakh for those earning ₹25 lakh compared to last year. These tax reliefs are expected to drive consumer spending, providing a boost to companies across the food, retail, and FMCG sectors.

Jubilant FoodWorks and Zomato are well-positioned to benefit from higher discretionary spending in the food services sector, while Bikaji Foods could see increased demand for its packaged snacks and traditional foods. Retail majors like DMart and Trent are expected to experience higher footfalls and sales as consumers allocate more of their increased disposable income towards household goods and fashion.

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In the FMCG sector, Godrej Consumer Products and Colgate-Palmolive are likely to benefit from stronger demand for everyday essentials and premium personal care items. The income tax cuts are anticipated to create a favorable environment for these companies, potentially driving revenue growth in the upcoming quarters.

Investors will be closely monitoring how these tax changes translate into actual consumer spending, with the broader consumption sector set to benefit from this budgetary boost.

(Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should consult their financial advisors before making any investment decisions.)