Stocks To Capture Rural Prosperity

A short drive out of our cities will show you that prosperity and modernity are reaching our villages too.If you wish to benefit by this increase in prosperity in rural areas you could accumulate the stocks of the following companies:

1. Hero Motocorp : Hero is the strongest 2 wheeler brand in rural areas and has 5000 distribution points in rural India,the highest in the industry,It derives nearly half of its sales from rural areas.

2. Emami : In the consumer industry,Emami has one of the highest exposures to rural markets.Around 60% of its sales and 50% of its profits come from here.

3. Maruti :1/3rd of its sales comes from rural areas where it has a strong brand and network.

4. Mahindra & Mahindra : The farm equipment segment (tractors) represents 40% of the topline.

5. M&M Fin Services : One of the largest vehicle finance companies,M&M Financial Services focuses on the rural and semi-rural areas with a majority of its 675 branches being located in such areas.A rise in rural incomes leads to greater demand for tractors and passanger vehicles.

6. ITC : The company makes 35-49% of its sales from the rural market.It is witnessing the rural consumers moving up the value chain in cigarette category.