As wedding season blossoms, analysts pick stocks that can help investors make merry

The wedding season in India is in full swing with 38 lakh marriages expected compared to 32 lakh weddings last year. The wedding business is likely to value around Rs 4.74 lakh crore this year, according to India’s Apex Trade Body, CAIT. 

Among the 38 lakh, four lakh weddings are likely to happen in Delhi. The cost of weddings in Delhi will be around Rs 1.25 lakh crore. The data further suggests that in the past two years, there has been an increase in the number of marriages as well as the business generated from them.

In 2021, 25 lakh weddings were held, which generated around Rs 3 lakh crore of business. In 2022, the number of weddings increased to 32 lakh, which generated around Rs 3.75 lakh crore of business. 

According to Zee Business research, the major expense allocation breakup was:

Which stocks should be on investors' radar this wedding season? 

With the wedding season generating business across sectors, here are a few stocks that analysts suggest investors keep an eye on.

According to Kaustubh Pawaskar, DVP Fundamental Research at Sharekhan by BNP Paribas, sectors such as jewellery, ethnic wear, liquor, and hotels will see a strong demand during the wedding season. 

"Kolkata is seeing 15-20 per cent growth in jewellery sales, while higher demand is seen for liquor in Delhi, this is positive for the overall consumer discretionary space," said Pawaskar.

Sharekhan has recommended focusing on the following stocks this wedding season: 

Indian Hotels Company and Chalet Hotels: Strong growth is expected in the food and beverage (F&B) business of the mentioned companies due to higher banquet bookings. Also, occupancies and room rentals will be higher in some of the luxury properties.

Titan: Demand for wedding jewellery will be high, and hence jewellery companies like Titan will benefit during the wedding season.

Radico Khaitan: Demand for liquor is strong during the wedding season (especially in North India) and hence companies such as Radico Khaitan will benefit.

Among other stocks, Kalyan Jewellers, Vedant Fashion, Senco Gold, Nykaa, and aviation stocks such as IndiGo may also experience a wedding rush.

Echoing a similar view, the spokesperson for Bigul, who didn't want to be named, said the gems-jewellery and apparel segments are expected to witness a surge in sales during this season. 

Bigul expects Indian Hotels Company Limited, SAMHI Hotels, Lemon Tree Hotels, Arvind Fashions, Aditya Birla Fashion and Retail Limited, and Manyavar to benefit the most during this wedding season. 

Likewise, Titan Company Limited and Kalyan Jewellers India Limited will also garner investors' interest, according to Bigul.

Giving a technical stance on Vedant Fashions' (MANYAVAR) stock, Mehul Kothari, Technical Head, Anand Rathi Shares & Stock Brokers, said since June 2023, the stock has been consolidating in a broad range of Rs 1,370–1,200 and has finally managed to break out from the same. 

He added that the breakout resembles a bullish triangle pattern. The price action was supported by decent volumes, and that indicates accumulation.

Kothari advises traders to 'buy' the stock near Rs 1,390 with a stop loss of Rs 1,250 for an upside target of Rs 1,700. The time frame for the same can be 3–6 months.

Anchal Kansal, Research Analyst at Green Portfolio, SEBI Registered PMS recommended 'Kamat Hotels'.

Kansal said catering to the premium and mid-premium category, Kamat Hotel is expanding its inventory massively, adding approximately 50 per cent more rooms to the current Rs 1,500 by FY25 and healthy EBITDA margins. With an excellent management team, it has managed to come out of an over-leveraged balance sheet by restructuring the debt. In her opinion, KHI is well-positioned for profitable growth driven by healthy expansion plans and industry tailwinds in the form of strong occupancy.

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