Monsoon: Due to good rains during the monsoon season, not only the farmers benefit but the industry will benefit. A good monsoon also creates a very good earning opportunity for the common man.
Monsoon (symbolic picture)
The Indian Meteorological Department (IMD) said that on June 1 this year, the monsoon can knock in Kerala. IMD has predicted good rains in the four months i.e. June, July, August and September. According to the Monsoon Department, the southwest monsoon is expected to be 98 percent of the normal this year. Good rains during monsoon season not only benefit the farmers, but the industry will also benefit. A good monsoon also creates a very good earning opportunity for the common man.
Normal monsoon brings many benefits at once. With this, where there is good farming, at the same time, companies get cheaper goods, which increases their income. Good farming strengthens rural economy, leading to a spurt in demand. Farming-related companies benefit from this.
Good news for farmers
According to a report, around 200 million farmers in India wait for monsoon rains to sow many crops like paddy, sugarcane, maize, cotton and soybean. About 50 percent of the country’s cultivable land lacks irrigation facilities. Due to this, agricultural production accounts for only 14 percent of India’s economy.
These sectors will benefit
With the good monsoon, the profits of companies making pesticides, fertilizers and farming equipment increase. At the same time, companies associated with consumer durables sector and FMCG sector also increase profits. Due to the increase in profits, their shares can give up to 40 percent profit in a few months.
Money will be spent here
>> Rallis India
Rallis India is a Tata group company doing business in the agro chemical sector. Experts are expecting a good boom in the next three to six months. There is no debt on the company. The quarterly results of the company have been very good. The company can get the benefit of increasing rural demand due to good monsoon. GCL Securities has a buy recommendation on Rallis India with a target of Rs 370. It can get a return of 28 percent from the current price.
>> Coromandel International
Brokerage house Motilal Oswal has advised to invest in fertilizer maker Coromandel International. The brokerage house has given a target of Rs 1030 in it. According to the current price of Rs 728, it can get 41 percent return. The company also produces pesticides and specialty nutrients. A good monsoon will boost the demand for fertilizer in agriculture, which will benefit the company.
>> Escorts Limited
Ajay Kedia, director of Kedia Commodities, told TV9 , that this year, good monsoon will increase the demand for tractors for farming. This can be availed by Escorts Limited, which manufactures tractors. In Kedia, it is suggested to invest with a target of Rs 1280.
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