Monsoon picks: 8 stocks to buy for 12-15% returns in 6-8 months

Way2Wealth Brokers in its latest note on monsoon picks identified eight stocks with potential returns of 12-15 per cent over the next 6-8 months. These stocks look set to gain from improving rural liquidity and demand on the back of better monsoon, the brokerage said. 

Bayer CropScience 
A normal monsoon forecast and strong corn prices are expected to drive solid growth in the maize seed segment. Additionally, favorable pre-monsoon rainfall should support strong performance in the herbicide portfolio during the first half of FY26. However, ongoing pressure from low glyphosate prices and high maize seed production costs may weigh on profitability in FY26.

Bayer CropScience is projected to deliver a revenue, Ebitda and PAT CAGR of 10 per cent, 30 per cent, 28 per cent, respectively, over FY25–27E. At the current market price, the stock is trading at a P/E of 28 times and an EV/Ebitda of 21 times based on FY27E estimates. Bayer CropScience  maintained its 'Buy' rating on the stock.

Canara Bank 
Way2Wealth Brokers noted that Canara Bank is one the leading public sector bank with Rs 10,73,300 crore in advances growing 11.7 per cent YoY in FY25. While the retail book stands at Rs 2,23,400 crore, the bank has Agri lending of Rs 2,46,900 crore forming 23 per cent of loan book and constituting the largest mix in the pie, Expectations for above normal monsoon in 2025, may keep inflation under control and give sufficient room for RBI to cut interest rates in CY25 reviving credit demand, said Way2Wealth Brokers.  

Coromandel International 
Coromandel International  is advancing key projects, with phosphoric and sulphuric acid plants at Kakinada 45 per cent complete and set for Q4FY26 commissioning, and a granulation train expected by FY27. Debottlenecking at Kakinada and Vizag is underway to enhance fertilizer output, while Dahej will see expansion in CPC actives. Post the NACL acquisition, the Rs 1,000-cr capex plan is being moderated, focusing on utilizing NACL’s spare capacity and exploring specialty chemicals and CDMO opportunities,  Way2Wealth Brokers said.

"At the CMP, the stock is trading at a P/E of 25x and an EV/EBITDA of 17x based on FY27E estimates. We assign a Buy rating to the stock," Ways2Weath said.

Emami Ltd
Emami remains committed to grow through various initiatives like newer launches, expanded reach and increased digital presence through e-commerce channels despite high inflationary environment and urban slowdown. Further, it has a strong presence in the niche personal care categories, with low penetration. At CMP, the stock is trading at 27x its FY26 EPS, Way2Wealth Brokers said. 

Godrej Agrovet Ltd.
Godrej Agrovet’s diversified products across less regulated agricultural inputs and outputs, leading market positions across all of them and high-quality management and parentage, makes it a proxy to ride the theme of Indian agriculture, Way2Wealth Brokers said. It added that the company has strong balance sheet and generates healthy cash flows and return ratios. At CMP, the stock is trading at 28x its FY26 EPS.

Hero Motocorp Ltd
In FY26, the company aims for 14-16% EBITDA margin, supported by a shift to higher margin product and price hikes. Also, the company is expanding in the 100cc and 125cc segments, supported by rising replacement demand and improved financing. In EVs, the focus is on the Vida brand, with two new affordable models set for launch in H1FY26.Also, PLI application for Vida Pro is awaiting approval by the end of H1FY26.

"We remain optimistic about growth of the company in near term. The company currently trades at a P/E 15.9x on FY27E below its 5-year average P/E of 21.6x," Way2Wealth Brokers said.

Supreme Industries Ltd.
SIL expects 12–13 per cent YoY volume growth in FY26, with Ebitda margins projected at 14.5–15.5 per cent, supported by stable resin prices. The Wavin India acquisition (73K MT) is set to close by June 2025, with capacity and margins expected to align with SIL’s piping segment. Pipe capacity will rise from 870K MT to 1,000K MT by FY26-end. 

"A recovery in plumbing demand is anticipated as channel inventories stabilize and government spending picks up. We remain optimistic about growth of the company in near term. The company currently trades at a P/E 39.7x on FY27E below its 5-year Average PE of 42.2x," Way2Wealth Brokers said.

Swaraj Engine Ltd
The factors like increasing affordability with adequate availability of financing, growing demand for farm mechanization due to increased scarcity of labor, emergence of newer technologies in the farming sector are likely to support to sustain the tractor demand momentum. 

"In this backdrop, engine business of the company is likely to move in tandem with industry. Further, return ratios (RoCE: 53 per cent, RoE: ~40 per cent) along with positive FCF generation will also be among the key triggers. At CMP, the stock is trading at 26x its FY26 P/E," Way2Wealth Brokers said.