PEAKLIFE

By Neha Mehrotra

In India, weddings have consistently been celebrated on a larger-than-life scale, characterised not only by extravagant parties and social gatherings but also by a significant economic boost and substantial spending capacity. Maybe that’s why they are known as ‘Big Fat Indian Weddings’. And the big fat Indian wedding is getting fatter after a quiet period during COVID. The wedding industry is expected to be worth Rs 4.7 lakh crore this year. A recent survey by the Confederation of All India Traders (CAIT) predicts around 35 lakh weddings will occur from November 23 to December 15, bringing a significant economic boost.

The heightened expenditure during the wedding season acts as a driving force for companies to generate significant profits, and this not only strengthens their financial position but also presents an appealing opportunity for potential investors. As the wedding season stimulates business across various sectors, we recommend keeping an eye on a few stocks to invest in.

1. Jewellery

There is an expected growth in purchases related to jewellery, especially gold, during the wedding season. Brands like Kalyan Jewellers, Thangamayil Jewellery, Senco Gold, and Titan are expected to deliver substantial returns to investors. Kalyan Jewellers has seen an outstanding gain of over 230% in the past year; Thangamayil Jewellery has performed impressively with over 180% returns; and Senco Gold has marked a remarkable rise of over 72% in just three months. Titan has delivered robust revenue and profit growth in the last quarter. The current price of Titan is Rs. 2,345 and the target price is Rs. 2,600, giving a potential upside of 10.9%.

2. Apparels

Vedant Fashions serves the Indian festive wear market by offering a varied range of brands, including Manyavar and Manthan. Additionally, Trent and Arvind Fashions have reported an exceptional rise of almost 87%. In the same period, Arvind Fashions also made a commendable jump of over 26%, showcasing impressive growth. The company operates several brands across casual and formal segments, including Calvin Klein, Tommy Hilfiger, US Polo Assn., Sephora, Arrow, and Aeropostale.

3. Hospitality and Travel Industry

Hotels and resort stocks can benefit the most from the wedding season due to increased travel and accommodation bookings. Key performers in this segment include Kamat Hotels, Taj GVK, Orient Hotels, and Lemon Tree Hotels, reflecting impressive returns over the last year. Indian Hotels is the largest hotel chain in India and the owner of brands like Taj, Vivanta, Gateway, and Ginger, which cater to different segments and markets. The current price of Indian hotels is Rs. 145, and the target price is Rs. 180, giving a potential upside of 24.1%. Additionally, strong growth is expected in the food and beverage (F&B) business of the mentioned companies due to higher bookings.

4. Vehicles and Transportation

The wedding season holds significance for motorcycle manufacturing companies, serving as a pivotal contributor to their annual sales and overall performance. TVS Motor Company, renowned for its diverse range of scooters and motorcycles such as the TVS Jupiter, TVS Ntorq, TVS Scooty Pep+, Apache Series, and TVS Sport, is anticipated to witness a boost in market share during the upcoming quarters of the fiscal year 2024.

Disclaimer: This article is meant solely for information purposes. Readers are encouraged to verify any information independently and to consult with a professional financial advisor for personalised advice tailored to their specific financial situation and goals.