Author Topic: Good monsoon - Where to Invest ?  (Read 1405 times)

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Good monsoon - Where to Invest ?
« on: August 04, 2016, 11:05:56 PM »
After two years of severe drought, the country is witnessing a good monsoon, based on rainfall data so far. ~80% of India has received normal to above normal rainfall this year. The overall monsoon rainfall till 27th July’16 has been 0.4% above the long term average versus a deficiency of 13% and 15% in 2014 and 2015 respectively.

The area under cultivation has now risen to ~80mn ha -the highest it has been in past 9 years, growing 6% yoy. In the current global environment of uncertainty, stocks of companies deriving revenues from the domestic consumer offer the best risk adjusted return.

According to Deutsche Bank, preferred consumer/rural interfacing beneficiaries include: M&M, Hero Motocorp, Titan, Godrej consumer, GSK consumer, ITC, Zee, Bajaj Finserv, Shriram Trans Fin, HDFC Bank, HDFC, LIC HF, HPCL, Shree Cement, Bharti, Coromandel.