5 Stocks to Watch as BJP Takes the Lead in Bengal Elections

#2 Bandhan Bank

Next on the list is Bandhan Bank.

Bandhan Bank is a banking and financial services company, headquartered in Kolkata.

It's present in 34 out of 36 states and union territories of India, with 5,646 banking outlets and more than 27.8 million (m) customers.

With a significant portion of its loan book anchored in microfinance and concentrated in eastern India, the bank offers a direct play on West Bengal's economic growth.

If the state sees improved policy execution and income growth, it could result in stronger credit demand and better asset quality.

Coming to its financials, Bandhan Bank's sales and net profit have grown at a CAGR of 17% and 180%, respectively, over the past 3 years.

The average ROE during the same period has come in at 11%.

In the latest Q4 FY26 earnings, the bank's net interest income (NII) rose 1.4% year-over-year (YoY) to Rs 27.95 billion (bn), while the total income jumped 3.2% to Rs 35.67 bn.

Asset quality showed a slight improvement, compared to the previous quarter. Provisions and contingencies also fell sharply by 46.3% YoY to Rs 6.77 bn, supporting profitability during the quarter.

Going forward, Bandhan Bank is planning to go big on its growth strategy by adapting financial solutions for urban and rural customers.

It's investing a lot on digital banking and new offerings like mutual funds and home loans to tap into a broader customer base.

The bank is also opening more branches and focusing on secured and non-microfinance loans, strengthening its position in India's fast-changing financial market.

As digital banking grows, the bank aims to capture more wallet share from its existing customers and attract new ones.

#3 Shree Cement

Third on the list is Shree Cement.

Shree Cement is among India's top three cement producers. It primarily sells bulk blended cement to the retail trade segment. The company generates 94% of its revenue domestically, with the remaining 6% from exports.

Cement demand is a direct play on construction and infrastructure activity and that's where policy shifts tend to show up first.

If West Bengal sees a renewed push towards roads, housing, and industrial development, cement consumption in the region could rise meaningfully.

Coming to its financials, Shree Cement's sales has grown at a CAGR of 8% in the past 5 years. The net profit however, has nearly halved during the same period.

The company's ROE and ROCE have averaged 10% and 13% during the same period.

Shree Cement's current capacity stands at around 62.8 m tonnes, supported by 36.7 m tonnes of clinker. The company plans to reach 80 m tonnes by FY28, adding scale without stretching its balance sheet.

Going forward, the company is expected to benefit from its established and healthy brand recall of cement products, which is supported by its distribution network on ground, leading to higher retail trade mix.

Further, the company enjoys cost competitiveness, driven by presence of captive limestone mines and significant captive power generation.

This is further boosted by significant green power mix, which is low cost and environment friendly.

#4 KEC International

Fourth on the list is KEC International.

KEC International is a leading global infrastructure giant specialising in Engineering Procurement and Construction (EPC) solutions.

It's the flagship company of the RPG Group. The company is involved in the Jal Jeevan Mission, and is developing a network of water distribution, which spans over 13,300 km, and caters to the water requirements of over 600,000 households in the country.

It has even developed elevated storage tanks using a mix of precast and structural steel technologies, which increases the longevity of the tanks.

With strong capabilities across power transmission and civil infrastructure, KEC is well-positioned if there is a pickup in project awarding activity. A push towards roads, electrification, and water infra in West Bengal could expand its addressable opportunity.

In the EPC businesses, even a modest increase in order inflows can significantly improve growth visibility.

Coming to KEC's financials, the company's sales and net profit have grown at a CAGR of 13% and 0.2%, respectively, over the past 5 years.

The ROE and ROCE have averaged 10% and 25% during the same period.

At present, the company has an orderbook exceeding Rs 367.3 bn. The management expects tenders worth Rs 1,800 bn in the pipeline, out of which, civil contracts will be worth Rs 600 bn, including Rs 200 bn of international projects.

For FY27, the management is expecting orders worth Rs 300-350 bn. All of this provides strong growth visibility.

#5 CESC

Last on the list is CESC.

CESC is the sole distributor of electricity within an area of 567 sq. km. of Kolkata, Howrah and adjoining areas and serves 3.4 m consumers including domestic, industrial, and commercial users.

The company owns and operates two thermal power plants in its licensed area generating 885 MW. These are Budge Budge Generating Station (750 MW) and Southern Generating Station (135 MW).

The company has also commissioned Haldia Thermal plant (600 MW). The entire power from Haldia is utilised to meet the total power requirement of CESC.

CESC is as close as it gets to a direct play on Kolkata's economic activity. Any pickup in industrial, commercial, or urban development in the region could translate into higher power demand.

Coming to its financials, CESC's sales and net profit have grown at a CAGR of 7% and 2%, respectively, over the past 5 years.

The company's ROE and ROCE has averaged 13% and 14% during the same time.

Going forward, the company is setting up a solar cell & module manufacturing ecosystem. It has secured LOI from the UP government for allotment of 100 acres in Greater Noida to establish a solar cell manufacturing complex.

Cell lines are scheduled for commissioning in 2027, aligning with upcoming DCR-linked solar requirements.

For more details, check out CESC fact sheet.

Conclusion

Elections create headlines and the ripple effect spills over to the stock market.

A potential shift in political winds could result in a renewed focus on infrastructure, industrial growth, and economic activity.

If that plays out, the impact won't be uniform. It will show up first in specific sectors, and even more selectively, in a handful of companies.

But it's important to remember, these are possibilities, not certainties. Changes in policy is one thing, but actual execution on the ground often takes time.

Investors should always evaluate the company's fundamentals, corporate governance, and valuations of the stock as key factors when conducting due diligence before making investment decisions.

Happy investing.

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