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Top 10 Stocks to invest in 2018 which benefits from Govt Focus on Rural Spending

Top 10 Stocks to invest in 2018 based on Govt Focus on Rural Spending-minTop 10 Stocks to invest in 2018 which benefits from Govt Focus on Rural Spending


Govt of India has been focusing for a while about higher rural spending in 2018. There are several companies that would get benefitted with such higher rural spending in India. There are several sectors in Irrigation, FMCG, Automotive, Agro business etc., that would get benefitted with this Rural Spending Theme. We have filtered a few stocks to invest in 2018 that would get benefitted with Govt of India focus on Rural Theme. In this article, we would provide Top 10 Best Stocks to invest in 2018 based on the Govt Focus on Rural Spending in India.

Also Read: Top 10 Mutual Funds to invest for high returns

Why Govt of India is focusing on Rural Spending now?


Govt of India has been thinking and discussing for a while about Rural Spending. Mr.Arun Jaitley, Finance Ministry few days back indicated that Govt of India would give extra focus on rural sector and would help prolonged rural distress. Government is expected to pay more attention on the rural economy and agriculture in its Union Budget in 2018. Out of the various sectors, only few sectors like FMCG, Auto sectors, Irrigation etc, are going to be benefitted with this focus on rural theme.

Top 10 Stocks to invest in 2018 which benefits from Govt Focus on Rural Spending


Top#1 – Jain Irrigation – CMP Rs 141


Jain Irrigation is engaged in providing solutions in agriculture, piping, infrastructure through manufacturing of Micro Irrigation Systems, PVC Pipes, HDPE Pipes, Plastic Sheets, Agro Processed Products, Renewable Energy Solutions, Tissue Culture Plants, Financial Services and other agricultural inputs for the past 34 years.

In last one year, this stock price has increased by 24%. This stock was trading at Rs 95, one year back and now currently trading at Rs 141.

In last one month, this stock price has increased by 8%. This stock was trading at Rs 113, one month back and now currently trading at Rs 141.

As part of increase in rural spending, Govt of India is pushing the micro irrigation, hence Jain Irrigation would be biggest beneficiary with this move. I feel this is one of the best stock to invest in 2018 that would get benefitted from Rural spending.

Top#2 – EPC Industries – CMP Rs 201


EPS Industries is the leading player in micro irrigation with market share of 5% in India.

In last one year, this stock price has increased by 35%. This stock was trading at Rs 148, one year back and now currently trading at Rs 201.

In last one month, this stock price has increased by 20%. This stock was trading at Rs 165, one month back and now currently trading at Rs 201.

EPC Industries being market leader in Micro irrigation projects would benefit from Govt of India focus in increasing Rural spending. This is part of M&M group and it has debt free balance sheet.

Top#3 – Mahindra and Mahindra – CMP Rs 758


Mahindra and Mahindra Limited (M&M) is an Indian multinational car manufacturing corporation. It is one of the largest vehicle manufacturers by production in India and the largest manufacturer of tractors in the world. It is a part of Mahindra Group.

In last one year, this stock price has increased by 22%. This stock was trading at Rs 615, one year back and now currently trading at Rs 758.

In last one month, this stock price has increased by 7%. This stock was trading at Rs 705, one month back and now currently trading at Rs 758.

Mahindra and Mahindra has dominant position in tractors in India. With increase in rural spending, this company would get benefitted with such move. I feel this is one of the good stock to invest in 2018 that would get benefitted from Govt Rural spending.

Top#4 – Swaraj Engines – CMP Rs 2,090


Swarj Engines is into manufacturing and supplying of diesel Engines in the range of 22HP to above 54HP. The company is equipped with highly productive & precise quality analyzing machines. It is also manufacturing hi-tech engine components. Till date it has supplied over 7,00,000 engines for fitment into Swaraj tractors.

In last one year, this stock price has increased by 61%. This stock was trading at Rs 1,302, one year back and now currently trading at Rs 2,090.

In last one month, this stock price has increased by 7%. This stock was trading at Rs 1,948, one month back and now currently trading at Rs 2,090.

Swaraj Engines is the leading supplier of tractor engines to tractor owned by M&M.  This company is expected to benefit from Rural India Theme.

Top#5 – Hero Moto Corp – CMP Rs 3,630


Hero MotoCorp is the World’s single largest two wheeler motorcycle manufacturer based in India.

In last one year, this stock price has increased by 20%. This stock was trading at Rs 2,986, one year back and now currently trading at Rs 3,630.

In last one month, this stock price has increased by 7%. This stock was trading at Rs 3,501, one month back and now currently trading at Rs 3,630.

Hero Motocorp is expected to benefit from rural theme as it commands more than 50% of its sales in rural areas and in specific regions. It would also benefit from its new product launches. I feel this is one of the best blue chip stock that would benefit from rural theme.

Also Read: Best Investment Plans to invest in 2018

Top#6 – Dhanuka Agritech – CMP Rs 783


Dhanuka Agritech Limited manufactures a wide range of agro-chemicals like herbicides, insecticides, fungicides, miticides, plant growth regulators in various forms – liquid, dust, powder and granules. The Company has a pan-India presence through its marketing offices in all major states in India, with a network of more than 7,000 distributors/ dealers selling to over 75,000 retailers across India and reaching out to more than 10 million farmers. The Company has technical tie-ups with 4 American, 5 Japanese & 2 European Companies.

In last one year, this stock price has not moved much. This stock was trading at Rs 780, one year back and now currently trading at Rs 783.

In last one month, this stock price has increased by 13%. This stock was trading at Rs 695, one month back and now currently trading at Rs 783.

Its unique business model is expected to benefit more from rural theme of Govt of India.

Top#7 – Dabur India – CMP Rs 361


Dabur India is one of the best ayurvedic companies in India

In last one year, this stock price has increased by 28%. This stock was trading at Rs 278, one year back and now currently trading at Rs 361.

In last one month, this stock price has increased by 3%. This stock was trading at Rs 345, one month back and now currently trading at Rs 361.

Majority of the sales of Dabur India comes from Rural areas. It would benefit from rural expansion and its new product launches. Dabur India is planning to expand its foot print and expecting to penetrate in 60,000+ rural areas especially South India. This company being in FMCG area is expected to benefit more from Govt of India increase in rural spending.

Top#8 – Rallis India – CMP Rs 270


Rallis, a TATA Enterprise is a subsidiary of Tata Chemicals, with its business presence in the Farm Essentials vertical. It is one of India’s leading crop care companies. The company’s 2,300 distributors reach more than 40,000 retail counters across the country covering more than 80% of India’s districts. Rallis is known for its deep understanding of Indian agriculture, sustained contact with farmers, quality agrochemicals, branding and marketing expertise and its strong product portfolio of comprehensive crop care solutions. Rallis is closely connected to around 1 Million farmers through Rallis Kisan Kutumb programme. It is estimated that around 5 Million+ farmers benefit from the agriculture solutions provided by Rallis.

In last one year, this stock price has increased by 32%. This stock was trading at Rs 205, one year back and now currently trading at Rs 270.

In last one month, this stock price has increased by 13%. This stock was trading at Rs 240, one month back and now currently trading at Rs 270.

Its new digital initiate Rallis Samrudh Krishi helps improving the quality and yield of crops. Company is also focusing on increasing its non pesticides portfolio in the next couple of years. Its top 6 brands like Ujala, Maxo, Henko, Margo and Pril contributes to 80% of its revenues. I feel this is one of the top stock to invest in 2018 in India which would get benefitted from Rural spending.

Top#9 – Hatsun Agro – CMP Rs 869


Hatsun Agro Products is the largest private sector dairy Company in India

In last one year, this stock price has increased by 117%. This stock was trading at Rs 397, one year back and now currently trading at Rs 869.

In last one month, this stock price has reduced by 2%. This stock was trading at Rs 835, one month back and now currently trading at Rs 869.

Company is currently expanding procurement infra to boost its revenues. It is also working on backward integration to improve its profits. Its 100% direct milk sourcing and shorter cash conversion cycle would help company to grow in the near term and benefit from the Rural India theme. One of the good stock to invest in 2018.

Also Read: Best Multibagger BlueChip stocks to invest in 2018

Top#10 – Jyothy Laboratories – CMP Rs 373


Jyothy Laboratories Ltd is a Mumbai-based fast-moving consumer goods company founded in 1983.

In last one year, this stock price has increased by 10%. This stock was trading at Rs 336, one year back and now currently trading at Rs 373.

In last one month, this stock price has increased by 1%. This stock was trading at Rs 370, one month back and now currently trading at Rs 373.

Jyothi Labs is going on expansion mode which can boost its revenues and profits. This company is likely to be benefitteed from higher rural spending initiative by Govt of India.

Should you jump and invest in these Stocks now?


The straight answer is no. One should keep accumulating these funds on lots. One should encash for any market / stock corrections where you can buy at lower prices. 

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Suresh

Top 10 Stocks to invest in 2018 which benefits from Govt Focus on Rural Spending

The Author

Suresh KP

Suresh KP i.e. me have written 1,500+ articles on this blog. I love doing analysis on various Best Investment Plans like mutual funds, Stocks, IPO's, NCD Bonds, Insurance products. If you like our blog, you can share some of the good articles on your Facebook or Twitter. This would be the BIGGEST gift which you would be giving to us.

7 Comments

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  1. VERY NICE ARTICALS WITH VERY GOOD INFORMATION THANKS

  2. Yes , it looks like a good article!

  3. Hello Suresh , is this the article you were mentioning you will come up for good MF for natural resource, mining, energy, utilities, tech only with the intention to keep it long term 8-10 years ? I see this is Stock but thought would confirm, Thank You

    1. No Joseph. This was writen last week before your request/comment.

  4. Hi

    Could you please share your views on godrej agrovet and skipper.

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