Top 6 Stocks to Watch in Wedding Season in India
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Wedding season is here and that means a lot of spending for Indian consumers. From jewellery to clothes, Indian weddings are lavishing when it comes to spending money. According to the merchant association commonly known as Vyapar mandal CAIT (Confederation of All India Traders), there will be around 35 lakh weddings this year estimated at nearly 4.5 lakh crore rupees. In India, people spend a lot on new cars, clothes, jewelry, and home renovation during weddings. This boosts the sales and profits of many companies in the December quarter.
Recently our prime minister Modi Ji also mentioned that weddings are a big source of income for the Indian economy. That’s why he has urged the people who are going abroad for weddings to do it in India instead. This way, the money will stay in India and the local businesses will benefit.
Let's break it down in simpler terms. Imagine there are various weddings, both big and small. Some weddings cost less, like a few hundred thousand rupees each, while others are more expensive, reaching millions. Out of all these weddings, about 15% of the business comes from selling jewelry. The Bottom line is that a significant portion of the overall business is driven by jewellery sales.
Now let’s talk about the few stocks which will have an impact from this -
Raymond is one of India's oldest and most trusted brands in the textile and apparel industry. It is known for its premium quality fabrics, suits, and garments. Raymond has a loyal customer base, a wide distribution network, and a diversified product portfolio. It also benefits from the increasing demand for formal and semi-formal wear in the wedding season, as people buy them for themselves or for their relatives. Raymond has shown decent revenue and profit growth in the last quarter and has a positive outlook for the future. The current price of Raymond is Rs. 345 and the target price is Rs. 400, giving a potential upside of 15.9%.
Vedant Fashions is the owner of the famous ethnic wear brand Manyavar, which has become synonymous with wedding wear for men. It also has a women’s wear brand called Mohey, which offers a range of bridal and festive wear. Vedant Fashions has a strong brand recall, a loyal customer base, and a pan-India presence. It also has a low-cost and asset-light business model, which gives it a high margin and return on capital. Vedant Fashions has shown a consistent revenue and profit growth in the last few years and has a bright future ahead. The current price of Vedant Fashions is Rs. 1,245 and the target price is Rs. 1,400, giving a potential upside of 12.4%.
Titan is the leader in the branded jewellery segment in India with its popular Tanishq brand. It also has a strong presence in the watch and eyewear segments with brands like Titan, Fastrack, Sonata, etc. Titan has a loyal customer base, a wide distribution network, and a diversified product portfolio. It also benefits from the gold monetization scheme and the hallmarking policy of the government. Titan has delivered a robust revenue and profit growth in the last quarter and has a positive outlook for the future. The current price of Titan is Rs. 2,345 and the target price is Rs. 2,600, giving a potential upside of 10.9%.
For more detailed insights of Diamond and Jewellry stocks, you can refer to our blog[Click Here]
Hero MotoCorp is the largest two-wheeler manufacturer in the world and the market leader in India. It has a wide range of bikes and scooters that cater to different segments and preferences of the customers. Hero MotoCorp has a strong brand equity, a vast distribution network, and a loyal customer base. It also has a strong R&D and innovation capability, which helps it to launch new and improved products regularly. Hero MotoCorp has shown a healthy recovery in sales and profitability in the last quarter and has a positive outlook for the future. The current price of Hero MotoCorp is Rs. 2,845 and the target price is Rs. 3,200, giving a potential upside of 12.5%.
For a more in-depth analysis of Automobile stocks, please visit our blog [Click Here].
Indian Hotels is the largest hotel chain in India and the owner of the iconic Taj brand. It also has other brands like Vivanta, Gateway, and Ginger, which cater to different segments and markets. Indian Hotels has a strong brand reputation, a loyal customer base, and a diversified portfolio of properties. It also benefits from the increasing trend of destination weddings and the preference of the guests to stay in premium hotels. Indian Hotels has shown a significant improvement in occupancy and revenue per available room (RevPAR) in the last quarter and has a positive outlook for the future. The current price of Indian Hotels is Rs. 145 and the target price is Rs. 180, giving a potential upside of 24.1%.
Dixon Technologies is one of the leading contract manufacturers of consumer electronics and appliances in India. It makes products like smartphones, TVs, washing machines, etc. for brands like Samsung, Bajaj, Philips, Panasonic, etc. Dixon Technologies has a strong competitive advantage, a diversified customer base, and a scalable business model. It also benefits from the increasing demand for consumer electronics and appliances in the wedding season, as people buy them as gifts or for personal use. Dixon Technologies has shown a stellar revenue and profit growth in the last quarter and has a positive outlook for the future. The current price of Dixon Technologies is Rs. 4,345 and the target price is Rs. 5,000, giving a potential upside of 15.1%
In conclusion, we can say that you should not invest in these stocks based on the wedding season alone. However, you can invest in them based on their fundamental strength, their growth potential, and their valuation.
In simple terms, the key takeaway is that smart investing is like a marathon, not a sprint. While making quick money in a month might sound tempting, real success comes from being patient and making decisions that consider the long run. The blog focuses on investing making smart choices and being ready for ups and downs in the market.
Disclaimer -You should also do your own research and analysis before investing in any stock. You should also have a clear investment objective, a time horizon, and a risk appetite. You should also diversify your portfolio and monitor your investments regularly.
Frequently Asked Questions
- Indian weddings drive substantial consumer spending, estimated at nearly 4.5 lakh crore rupees annually.
- They boost various sectors like cars, clothing, jewelry, and home renovations, elevating sales and profits for many companies during the December quarter.
Approximately 15% of the overall business during weddings comes from jewelry sales.
Companies like Raymond, Vedant Fashions, Titan, Hero MotoCorp, Indian Hotels, and Dixon Technologies are poised for growth due to increased consumer spending during weddings.
Indian Hotels, with its diverse portfolio catering to different segments, sees increased occupancy due to the trend of destination weddings and guests preferring premium stays.
Conduct thorough research, define clear investment objectives, evaluate risk appetite, diversify the portfolio, and regularly monitor investments to make informed decisions.