On Friday, RBI increased the Repo rates. It increased by 50 BP (Basis Points). RBI increased it for 3rd time in a row since April this year. On the other hand, the monsoon is likely to do well. A good monsoon indicates good agricultural produces. It means an increase in rural demand. We can say that if the monsoon goes well, one may see a lift in farm income and, thus, demand, especially when food prices and inflation are rising. Let’s have a look over the best monsoon picks that might be a good grab during this monsoon season.
Coromandel International:
Good monsoon directly relates to the good agricultural right? So, the Agri sector also does well. Coromandel International is one of India’s leading Agri solutions providers.
The company mainly deals with fertilizers, crop protection, biopesticides, speciality nutrients and organic fertilizers.
Coromandel International is a Murugappa group company. Which has a presence across various industries like auto components, abrasives, financial services, transmission systems, sugar and many more.
The company has a strong foot in cash flows. They launch new products continuously. Also, the balance sheet looks good with a strong business model.
Kaveri Seeds:
Kaveri seeds are one of the leading seed producers in India. The company is in the research, production, processing and marketing of various Agri seeds and hybrid seeds also.
The company was established in 1986 with a single seed-producing unit; now Kaveri seeds has a presence across India with 22 states spanning 12 agro-climatic zones. They have 7 processing plants with an aggregate production capacity of 10,00,000 aq ft across India.
A healthy monsoon will increase the demand for seeds. This will eventually be beneficial for the company. The company has strong financial and cash flows. It might be a good pick for this monsoon season.
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Escorts Kubota:
Escorts are engaged with the manufacturing of Agri equipment. The company is famous for its Agri tractors, engines for the tractors and material handling equipment.
Escorts has a 10.3 per cent market share in the manufacturing and marketing of tractors. The company generates its major revenue through Agri equipment. It is almost 77 per cent of total revenue. They have a total of 5 plants and a manufacturing capacity of 1,20,000 units.
The company also focuses on the EV segment and EV-related products and technology. The company has a good balance sheet. The good monsoon season in India definitely increases the demand for Agri equipment and tractors.
Hero moto Corp:
The company Hero moto corp is also known as the “Hero Honda”. It is one of the first motorcycle manufacturers in India.
The company has been the world’s largest manufacturer of 2-wheelers for 19 years in a row. In terms of units sold by the company. Hero moto corp has an overall 36% market share in India.
The company has a strong balance sheet and cash flows. Because of the company’s strong rural presence and increase in government spending Hero moto corp has a bright future.
Marico:
Parachute coconut hair oil is a well-known brand of Marico. The company is in the consumer goods manufacturing segment. It has a presence in over 25 countries across Asia and Africa.
Marico is famous for its Coconut oil brand known as a parachute. Also, it is known for Saffola which is the Super premium refined edible oil arm of the company. The company manufactures products for male grooming and styling, skincare and hygine.
Marico enjoys a monopoly in coconut oil products with a market share of 62 per cent, with super premium ROCP (Saffola) with a market share of 82 per cent.
Final Words for monsoon picks:
The country is expected to get a normal monsoon season this year. It indicates a good recovery in the Economy. These mentioned companies are our best picks for the monsoon season. Do your own research and grab the opportunity while the market is also recovering. Also, if have such recommendations or thoughts regarding Agri seasons and markets we glad to hear from you. Share your idea in the comment box below.
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Image and article originally from sensextoday.co.in. Read the original article here.