With most of India’s population living in rural areas, the rural sector is one of the major driving forces behind India’s economy. Nearly 55% of the population relies on agriculture for their livelihood and it contributes 17% to the nation’s GDP. The rural sector has been a key driver of the Indian economy.
With the growth of rural markets, more and more companies will focus on tailoring their products and marketing strategies to cater to the unique needs and preferences of rural consumers.
These are the following stocks that contribute to rural development and which you can keep an eye on:
Mahindra and Mahindra Financial Services (MMFSL)
The shares of the leading NBFC opened flat on Friday’s trading session at Rs. 270. The share hit a low of Rs. 260.70 and closed its day at Rs. 273.80 apiece.
Mahindra Finance is the leading non-banking finance company in the rural market, with over 1300 branches across India’s 28 states and nine union territories. It is present in every single district and has customers in four lakh villages. It has transformed from a tiny entity offering a single product to a financial giant with a range of offerings and a customer base of over 6.9 million people.
It doesn’t only finance Mahindra vehicles, it is among the biggest financiers of Maruti cars in rural and semi-urban areas.
The company focuses on the rural and semi-urban sectors and is the largest Indian tractor Financier. Its AUM mix is comprised of autos, tractors, cars, pre-owned cars, and SMEs.
In the recent quarter, the company’s revenue stood at Rs. 3,833 crores, and the company recorded a net profit of Rs. 281.09 crores.
Credit Access Grameen Ltd
The shares of a leading microfinance company opened lower on Friday’s trading session at Rs. 1,640. The share hit a low of Rs. 1,572 making a loss of around 4 percent, and closed its day at Rs. 1,604 apiece.
The company focuses on providing micro-loans to women predominantly in rural areas across India. The company aims to enable rural transformation by igniting the spirit of enterprise among these women.
The company offers a bouquet of loan products to cater to various life cycle needs of its customers. These include loans for income generation, health care, education, emergencies, festivals, home improvement, working capital, water and sanitation, etc.
The company’s revenue stood at Rs. 1,2496 crores during the recent quarter and the net profit was recorded at Rs. 347 crores in the same period.
Dhanuka Agritech Ltd
The shares of this chemical manufacturing company opened Friday’s trading session on a higher note at Rs. 877. The share hit a high of Rs. 897 making a gain of around 2 percent and closed its day at Rs. 866 apiece.
Dhanuka Agritech is encouraging good agricultural practices such as the use of modern technologies, optimum use of fertilizers and green manure according to soil test reports for better soil health, crop insurance, use of hybrid seeds, judicious use of agrochemicals, saving water in agriculture through the use of drip irrigation and sprinkler irrigation technique, etc. Dhanuka is also educating farmers not to burn crop residue in the field.
The company tries actively to contribute to the social and economic development of the society in which it operates by laying special emphasis on promoting education, eradication of hunger, poverty, and malnutrition, conservation of water, and deployment of water for agriculture. The CSR activities of the company aim at improving the lives of the agricultural and rural communities holistically.
The company’s revenue stood at Rs. 617.9 crores during the recent quarter and the net profit was recorded at Rs. 101.77 crores in the same period.
Rallis India
The shares of the agricultural product manufacturing company opened Friday’s trading session flat at Rs. 213.80. The share hit an intraday high of Rs. 217.90 making a gain of around 1 percent and closed its day at Rs. 215.50 apiece.
Rallis India is a member of Tata Group and a manufacturer of pesticides, fertilizers, and fine chemicals that help in improving the quality and yield of the crop. This is a digital initiative that will help the company to provide end-to-end Agri Solutions to the Indian framers.
Furthermore, the company mainly focuses on empowering rural communities through targeted initiatives that facilitate access to water, livelihood opportunities, healthcare, and sanitation, and also through employee volunteering programs.
In the recent quarter, the company’s revenue stood at Rs. 832 crores, and the company recorded a net profit of Rs. 82 crores.
Written By Vaibhav Patil
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