Why buy wedding season stocks?
As the COVID regulations get lifted, the big, fat Indian wedding season is back with a bang. And when the Indian wedding industry waits for its Band, Baja, and Barat, let’s find out how lucrative the wedding season stocks are for investment.
An overview
We know that weddings are a big event in any Indian society. According to a report by the Confederation of All India Traders (CAIT), approximately 25 lakh weddings will occur in one month. The report further states that the wedding season will generate business worth Rs 3 lakh crore for the sectors dependent on it, including hospitality, textile, catering, and jewellery – all stand to gain from this season.
Here we have identified the top 10 stocks you can buy during the wedding season. These companies stand to benefit when the wedding season starts and are likely to see a sharp rise in their profit. We have included hospitality, apparel brands, textile, and jewellery stocks.
Presently, the US is the largest wedding market globally. However, India is likely to take over that position soon enough. India is expected to see 40 crore weddings in the next fifteen years, whereas the total population of the USA is 32 crore.
Indians are known for their love for extravagance during weddings. While the per capita income of Indians is one-tenth of Americans, the per capita spending on weddings in urban India is 1.5x the latter.
One can compare the size of the Indian wedding market from the graph below. The largest global wedding market, the USA, is experiencing negative growth.
Source: https://www.weddingwishlist.com/wedding-board/indian-wedding-industry-whitepaper/
Data from February, 2022
Mostly unorganised, the true potential of the Indian wedding industry is still unknown.
Top Indian wedding season stocks
|
Sl no |
Company Name |
Market cap in ₹ crore |
|
1 |
2,30,980 |
|
|
2 |
10,176 |
|
|
3 |
1,385 |
|
|
4 |
45,211 |
|
|
5 |
1,254 |
|
|
6 |
51 |
|
|
7 |
8,625 |
|
|
8 |
2438 |
|
|
9 |
7,564 |
|
|
10 |
17,046 |
Titan
The Tata Group company manufactures and markets watches, jewellery, wearables, eyewear and others. The company owns several brands – Fastrack, Mia, Caratlane, Tanishq, Sonata, and Zoop, are among them. The company’s share price increased by 8.91% last year.
P/E ratio (TTM): 73.81
EPS (TTM): 35.25
Profit in 2022: ₹2,173 crore
Kalyan Jewellers
The company manufactures, markets and owns several brands of gold, platinum, silver, and diamond jewellery. Their brand includes Mudhra, Anokhi, Rang, Veda, Tejasvi, and others. Kalyan Jewellers have 137 retail outlets spread across India and the Middle East. Currently, the stocks are trading under ₹100.
P/E ratio (TTM): 24.08
EPS (TTM): 4.10
Profit in 2022: ₹224 crore
ThangaMayil Jewellery
The India-based jewellery brand primarily engages in the manufacturing and sales of jewellery and other accessory products. They sell gold jewellery, diamond, and silver articles in 37-plus showrooms and 13-plus exclusive silver showrooms. The stocks have lost 22.47% value in the last year.
P/E ratio (TTM): 25.54
EPS (TTM): 39.53
Profit in 2022: ₹38.54 crore
Indian Hotels
The company is primarily involved in owning, operating, and managing hotels, palaces, restaurants, and resorts under various brands, including Taj, Vivanta, The Gateway, Ginger, and Expressions. The company’s share price has increased 53.34% in the last year despite COVID-related stringencies.
P/E ratio (TTM): 98.53
EPS (TTM): 3.23
Profit in 2022: – ₹248 crore
Taj GVK Hotels
The company owns, operates, and manages hotels, palaces, and resorts. Its business includes short-term accommodation activities, restaurants, and mobile food service activities. The company manages properties like Taj Krishna, Taj Banjara, Taj Decan, and Vivanta by Taj.
P/E ratio (TTM): 18.88
EPS (TTM): 10.59
Profit in 2022: 2.10
Libas
Libas is a global online fashion retailer that offers a range of Indian ethnic and fusion garments. The couture company offers customised fashion solutions with the help of a team of tailors. One can add the company’s stock as the wedding season begins.
P/E ratio (TTM): 5.08
EPS (TTM): 3.83
Profit in 2022: ₹8.74 crore
Raymond
Founded in 1925, Reymond needs no introduction. The India-based integrated suiting company offers end-to-end solutions for fabrics and garments. Its business segments include Textile, which provides branded fabric, Shirting, and Apparel involving branded readymade garments. You can check out the stocks related details below before buying.
P/E ratio (TTM): 14.45
EPS (TTM): 89.63
Profit in 2022: ₹260 crore
Arvind Fashions
Its business segments include textiles, advanced materials, and others. Founded in 1931, the company is a leading name in the Indian textile segment. It has a proven track record with significant market penetration. You can include it in your portfolio as the wedding season begins.
P/E ratio (TTM): 6.10
EPS (TTM): 16.27
Profit in 2022: ₹238 crore
Welspun India
The company is in the textile business and manufactures a range of home textile products, including terry towels, bed linens, and rugs. In one year, the stock price has declined 39.94% and is currently trading below ₹100.
P/E ratio (TTM): 35.14
EPS (TTM): 2.18
Profit in 2022: ₹601 crore
Trident Ltd
Trident Ltd. manufactures, trades, and sells textiles, papers, and chemicals. The company primarily operates in textile and paper business segments, including yarn, towels, bedsheets, and dyed yarns. Check out the stock details below before investing.
P/E ratio (TTM): 30.72
EPS (TTM): 1.11
Profit in 2022: ₹834 crore
As the wedding season begins in India, it is time to reconsider your portfolio and add some of these wedding season stocks. If you want to buy these stocks, open a Demat account in minutes with Angel One.
Disclaimer: This blog is exclusively for educational purposes. The securities quoted are exemplary and are not recommendatory.
