Rains have finally arrived. It has hit the Kerala region, though slightly late. There are contrasting reports on how the monsoon season will pan out this year. While the IMD has predicted that we will have deficient rains, Skymet has projected it would be normal.

Deepak Fertilizers

Fertilizer shares are one of the direct beneficiaries of a good monsoon. Deepak Fertilizers has been a consistent performer in the last many years. The stock on Friday hit a 52-week low after there were worries that the country would face rain deficiency.

The company has a solid track record of consistently paying healthy dividends. For 2014-15 it declared a dividend of 40 per cent.

At Rs 121 the stock is quoting at a price to earnings multiple of 13.44 which is reasonable. The book value of Rs 188 means the stock is quoting below its book value at just 0.68 times. The stock maybe a good bet if demand for fertilizers is up on account of good monsoons.

Check stock quotes and key fundamentals of Deepak Fertilizers here

Hindustan Unilever

Hindustan Unilever gets a lot of its sales from rural areas. If agriculture is hit rural spending falls and this tends to affect an FMCG major like Hindustan Unilever (HUL). The one reason to buy HUL is that the stock has fallen from levels of Rs 979 to Rs 829. If you buy the stock now you would also get a dividend of Rs 9, which means your cost falls further.

The price to earnings ratio of HUL at around 40 times is much lower than other multinational FMCG stocks like Nestle India.

Check stock quotes and key fundamentals of HUL here

Hero Motor Corp

In the past Hero Motor Corp has been affected whenever rural demand is sluggish. The company's petrol efficient bikes see a lot of demand from the rural sector.

The stock of Hero Motor has fallen almost 20 per cent from highs of Rs 3200 to the current levels of Rs 2500. One can buy the shares only if there is a further dip closer to levels of Rs 2200.

The problem for 2 wheeler majors is the stiff competition that the sector faces. The stock of Hero Motor Corp is quoting at 21 times p/e which is not really cheap. So wait for the share to fall a little from current levels before initiating a buy.

Check stock quotes and key fundamentals of Hero Motor Corp here

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