Top 5 Stocks to Buy this Monsoon

resr 5paisa Capital Ltd

Last Updated: 11th July 2025 - 11:28 am

3 min read

Monsoon-related stock picks typically span across diverse sectors such as agriculture, automobiles, and fast-moving consumer goods (FMCG). This diversification stems from the distinct ways in which each sector gains from favourable rainfall. Adequate monsoons lead to better agricultural yields, which in turn boost rural incomes. Higher disposable income in rural areas often drives increased spending on consumer goods and entry-level vehicles, benefiting FMCG and auto companies. Consequently, investors see strong monsoons as a positive signal for these sectors, prompting targeted stock selections to capitalise on the anticipated growth in demand and earnings.

Below, we have discussed, 5 stocks that are likely to benefit from a good monsoon:

Top Monsoon Stocks to Watch in 2025

As of: 16 Jul, 2025 3:57 PM (IST)

CompanyLTPPE Ratio52W High52W LowAction
Marico Ltd. 731.65 58.20 745.00 577.85 Invest Now
UPL Ltd. 671.45 59.70 699.45 483.75 Invest Now
Kaveri Seed Company Ltd. 1150.8 21.00 1,602.00 804.10 Invest Now
Rallis India Ltd. 351.5 39.70 385.75 196.00 Invest Now
Hero MotoCorp Ltd. 4424.5 20.20 6,246.25 3,344.00 Invest Now

Overview of Best 5 Monsoon Stocks to Watch in 2025

Marico Ltd

Marico has long been a trusted name in India’s consumer goods space, particularly across smaller towns and rural belts. With staple brands like Parachute and Saffola in its portfolio, the company is well-placed to benefit when rural incomes improve, as they often do after good rainfall. Better earnings in agricultural areas typically lead to more spending on essential care items, and Marico’s presence in this space makes it a natural beneficiary of this seasonal trend.

UPL Ltd

As a global name in agrochemicals, UPL supports farmers with an extensive range of crop care products—from herbicides to fungicides. When rainfall is favourable, farmers tend to plant more, which increases the need for crop protection. UPL’s strong distribution and experience working directly with growers means it often sees increased business during active farming periods, especially after a healthy monsoon.

Kaveri Seed Company Ltd

Kaveri Seed has built a strong reputation among farmers for offering quality hybrid seeds across a range of crops like cotton, maize, and rice. A good monsoon typically brings optimism to the farming community, leading to higher sowing activity. This environment drives demand for premium seeds, and with Kaveri’s focus on innovation and farmer trust, the company often finds itself in a favourable spot during such times.

Rallis India Ltd

Rallis India, part of the Tata ecosystem, delivers a mix of seed solutions and crop protection inputs that cater directly to the rural market. The company’s strong field presence and consistent engagement with farmers make it a preferred partner during active agricultural cycles. After a productive monsoon, when planting and crop care pick up pace, Rallis usually sees a corresponding rise in product demand.

Hero MotoCorp Ltd

Hero MotoCorp has deep roots in India’s two-wheeler market, with a loyal customer base in rural and semi-urban regions. When monsoons are good, they tend to lift the economic mood in farming households, often leading to increased purchases of entry-level motorcycles. Thanks to its wide dealership network and accessible product range, Hero is well-placed to tap into this seasonal rise in demand.

Conclusion

A favourable monsoon season has far-reaching positive effects on India’s rural economy, and this, in turn, opens up investment opportunities across key sectors. Companies in the agri-input, FMCG, and two-wheeler segments stand to benefit significantly from increased agricultural activity and rising rural incomes. Stocks like Marico, UPL, Kaveri Seed, Rallis India, and Hero MotoCorp are strategically positioned to capitalise on this seasonal uplift. Their strong rural presence, trusted product lines, and direct link to farm output and consumption trends make them attractive picks during the monsoon period. For investors, monitoring rainfall trends and rural demand indicators can help identify timely entry points in these monsoon-aligned stocks.
 

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