If you are looking for stocks or sectors that give good profits, then you should focus on rural economy. Priyanka Khandelwal of ICICI Prudential AMC says that this is the right time to bet on the rural theme. Especially before the Union Budget 2025, the rural theme is looking quite attractive. The government of Prime Minister Narendra Modi at the Center has been emphasizing on increasing the income of the people living in villages, especially the farmers, for the last several years. For the last several years, many schemes related to rural economy are coming in the Union Budget.
Focus on increasing the income of people in villages
Khandelwal said that the income of people in villages is increasing. This is expected to increase both savings and consumption. Schemes like Ladli Behan Yojana have increased the income of people in rural areas. This will benefit those companies whose revenue is more from rural areas. In the Union Budget on February 1, the government’s focus may be on increasing employment opportunities in rural areas, teaching skills to the youth living in rural areas and schemes related to women.
Allocation to improve road network
He said that the government is trying to improve the infrastructure, especially the road network, in rural areas. The government believes that unless the road network in rural areas is improved, people’s income will not increase rapidly. On February 1, the government can make big announcements to improve the infrastructure in rural areas.
Rural areas have a higher share in the sales of these companies.
If the government increases the allocation for rural areas on February 1, it can benefit those companies whose revenue is from rural areas. These include companies like Hero MotoCorp, Kaveri Seeds, M&M, Rallis India and Dhanuka Agritech. Rural areas have a good share in the total sales of these companies.
Also read: Budget 2025 Expectations: Taxpayers will get big relief from this one step of Nirmala Sitharaman.
Opportunity to invest in these shares
Shares of Hero MotoCorp were trading at Rs 4,030, down 1.52 per cent on January 21. This stock has declined by more than 9 percent in the last one year. Motorcycle sales will increase due to increase in income in rural areas. There is a good demand for Hero MotoCorp two-wheelers in the villages. Shares of Kaveri Seeds saw a rise of more than 2 percent on January 21. This stock has increased by about 40 percent in the last one year. M&M shares fell more than 2 percent on January 21. But, this stock has risen 77 percent in the last one year. Shares of Rallis India fell by about 5 percent on January 21. This stock has given only 1.26 percent return in the last one year.