Two-wheelers, tractors, durable consumer goods, FMCG and fertilizers are some of the industries that are positively affected by a good monsoon season. Everyone’s eyes will be on these sectors as the monsoon approaches next month, experts said.
“Expectations of a normal monsoon year in 2022 and higher food prices have made the outlook for rural income on FY23 brighter. After deducting farm costs, we expect kharif income to grow by 10.1 percent between years in FY23 and a maximum of 9.5 percent between years in FY22. Are encouraging, “said BofA Securities.
There are two growing seasons in India. Kharif harvest is sown in monsoon and harvest in October-November. Rabi harvest is sown in October-December and harvest in March-April. Although rice is the key crop in kharif (summer), wheat is the main rabi (winter) crop.
BofA Securities said net rabies revenue was expected to grow by 12 percent year-on-year, compared to 3 percent year-on-year last year. Wage growth outside agriculture is also on the rise, says a comment.
India India has had a favorable rainfall pattern for the past three years, ie. 110 percent of LPA in 2019, 109 percent of LPA in 2020 and 99 percent of LPA in 2021, said Siddharth Sedani – Vice President of Equities. Advisory, Anand Rathi Stocks and Stockbrokers.
“Normal good monsoon is beneficial for the domestic agricultural sector, including agricultural mechanization as well as rural consumption of durable consumer goods as well as FMCG space, it will also increase the income of the agricultural sector in the near future. This will also have a profound effect on other industries such as steel, cement, tractor and two-wheelers, “said Sedani.
Vinod Nair from
said investors would look at the detailed distribution of precipitation in June. If the monsoon is going well, he said, monsoon-related strains could be in the spotlight, he said.
These are the five stocks that Sedani advises investors to watch out for (duration 1 year):
Tata Consumer | Based on 904 rupees
Tata Consumer with its presence in growing categories supported by a shift in consumption to packaged food. In addition, the headwinds of domestic consumption should continue to promote growth. Larger volumes of trade in India, digitalisation of the supply chain and synergies in the coming periods are the main drivers of growth.
| Based on 6,039 rupees
The company enjoys a unique position in the market due to its ability to offer new innovative products, technology, processes, services and business models. Management continues to rely on the company’s long – term growth history. In addition, the merger will add value to Bayer’s core portfolio with additional products from Monsanto India. The full benefits of the merger will begin to be reflected from FY22.
| Based on 1,012 rupees
We continue to be positive towards the company on the basis of its strong business model, good monsoon, strong cash flow from operations, strong balance sheet, promotions of new products, rapidly growing organic nutrient trade and agricultural reform.
| Based on ISK 890
We remain positive towards ICICI Bank, given the strong balance sheet, fixed debt base, strong collateral coverage and adequate equity ratio, strong growth in contributions, high housing ratio and improved asset quality.
| Goal 200
The volume surplus continues to be strong for Ashok Leyland behind the recovery in economic activity and increased product use. Introductions of CNG helped increase market share. Demand for buses is expected to be strong again in the coming months and the order book for electric cars will continue to grow.
(Disclaimer: Advice, suggestions, opinions and opinions given by experts are their own. This does not represent the views of the Economic Times)
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