With a positive monsoon outlook, domestic brokerage Motilal Oswal has assembled a portfolio of five companies from various industries, such as auto, FMCG, and others, that offer opportunities for short-term profits.
Motilal Oswal Recommends Top Stocks for Monsoon Basket 2024 Short-Term Gains
The country’s meteorological authority, IMD, predicted an above average monsoon this year (106% of the long-term average), suggesting that La Niña conditions will probably develop during the monsoon season’s second half. Given that a typical monsoon will support rural demand and assist industries including tractors, fertilizers, agrochemicals, and fast-moving consumer goods (FMCG), domestic brokerage Motilal Oswal Financial Services (MOFSL) has identified about five equities in its most recent research, dated June 8. profit from a healthy monsoon known as “Monsoon Basket 2024.”
Investors are recommended by the brokerage to place bets on this basket with a short-term outlook (three to six months) and a potential 20% gain.
The equities that make up the Monsoon Basket 2024 are listed below, along with an explanation:
Investment and Finance Company Cholamandalam, Motilal Oswal Recommends Top Stocks for Monsoon
According to the brokerage, the business can generate robust AUM growth with low borrowing costs, which translates into a stable return on equity (RoE) of about 21–22% during economic cycles. Additionally, it plans to increase ROA in recently established companies by preserving better production and enhancing opex ratios.
Dabur
Due to its significant market presence, the company has accomplished the amazing achievement of becoming a leader in the oral care sector throughout Odisha, Karnataka, and Andhra Pradesh. Its efficient price adjustment and well-managed volume trajectory have increased revenue. The business’s overseas division has experienced remarkable double-digit growth. By increasing its reach into rural areas, Dabur has put itself in a strong position to dominate the market in attracting rural customers, a market with enormous development potential.
escort services
Escorts’ competitive positioning would be enhanced by Kubota’s parent company. Additionally, the brokerage anticipates that the company’s Railway business will grow at a compound annual growth rate of around 19% between FY24 and FY26, with the addition of new products by FY25.
International Coromandel
From 1QFY25, the crop protection company’s operating performance should improve. It is anticipated that in the future, businesses such as Specialty Nutrition Division (SND), bio-products, and retail outlets will experience growth of approximately 10% to 15%. Additionally, these companies’ profitability is probably going to increase over time.
Emami
The company is confident about its future expansion because of the strong economy, the expectation of a regular monsoon, the expected revival of the rural sector, and government initiatives. The rural segment has been steadily recovering, and the company has seen indications of a recovering market. For FY25, the company expects a modest price increase, staying within a range of 2-2.5%. MOFSL anticipates an acceleration of volume growth in FY25, fueled by improved rural growth and seasonal tailwinds. Read more post…
Account opning link:
- Groww Account- https://app.groww.in/v3cO/kyrp1zph
- Kotak neo Account https://kotaksecurities.ref-r.com/c/i/32531/109103906
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