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Stocks To Watch In Wedding Season 2023

13 Dec 2023

Introduction

Equities rank among the most volatile financial instruments. They tend to exhibit excessive reactivity and volatility, swiftly adjusting their prices in response to prevailing market conditions.

Interestingly, among the various factors influencing stocks, the nation's wedding season is one of them. The wedding season wields a substantial influence over stock markets.

In this article, we delve into the stocks likely to grow due to the wedding season in India.

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Before delving into the intricacies of wedding stocks, let's first grasp the concept of cyclical and defensive stocks.

Cyclical stocks are sensitive to market conditions and exhibit price fluctuations in response. Defensive stocks maintain stability regardless of market conditions due to their constant demand. They are often called "evergreen stocks" because they enjoy consistent demand.

Consumer preferences tend to shift with the changing seasons. During the wedding season, there is an increased demand for items such as gold, Indian attire, and gifting items and even the hotel industry is on the rise.

Stocks To Watch In Wedding Season 2023

Vedant Fashions Ltd

Vedant Fashions Ltd is a prominent wedding apparel retailer in India. Renowned for managing well-known brands like Manyavar and Mohey, the company boasts an extensive network of more than 1,100 stores nationwide. As the upcoming wedding season approaches, Vedant Fashions is expected to capitalise on the heightened demand for wedding attire.

The company has achieved impressive profit growth at a compound annual growth rate (CAGR) of 24.0% over the past five years. It boasts a strong track record of return on equity (ROE) with a three-year average ROE of 25.3%. The company has also consistently maintained a healthy dividend payout ratio of 29.8%.

Indian Hotels Company Ltd

They are India's foremost hospitality firm, renowned for their vast portfolio of hotels and resorts operating under the prestigious Taj brand. Notably, the company holds a significant position in the wedding industry, serving a substantial volume of weddings annually. As the forthcoming wedding season approaches, Indian Hotels Company anticipates a substantial uptick in demand for its wedding venues and services.

The company successfully reduced its debt burden and is poised to deliver a strong quarter. Over the past five years, the company has achieved an impressive profit growth rate of 58.5% CAGR.

Raymond Ltd

Raymond Ltd stands as a prominent manufacturer and retailer in India, specializing in fabrics, clothing, and accessories. Notably, Raymond plays a significant role in the wedding sector, providing an extensive array of wedding-related offerings. They are likely to capitalize on the rising demand for wedding suits and attire in the approaching wedding season; the company is well-positioned for growth.

The company has achieved impressive profit growth, boasting a CAGR (Compound Annual Growth Rate) of 37.4% over the past five years. 

Party Cruisers Ltd

The company is in the field of wedding and event management, offering a comprehensive range of services to clients seeking various wedding and event solutions.  They cover everything from pre-wedding preparations to the actual wedding day and post-wedding events. This includes in-house design, specialized wedding event decor, and more.

They oversee the entire event process, from pre-event promotion and venue research and booking to a turnkey production approach that involves setup, on-site management, staffing, stage design, and entertainment coordination. The company is smartly positioned to take advantage of the wedding season.

The company is almost debt-free, and promoters hold about 73% in holdings, which is a positive sign.

Titan Company Ltd 

Titan is a top manufacturer and retailer of watches, jewelry, and eyewear within the Indian market. Titan significantly contributes to the wedding industry, providing an extensive array of wedding-related goods and services. As the upcoming wedding season approaches, the company anticipates capitalizing on the heightened demand for wedding jewellery and watches, further solidifying its presence in this segment.

The company has achieved a commendable profit growth rate of 23.9% CAGR over the past five years, reflecting its robust financial performance and strategic management. The company has also consistently maintained a sound dividend payout ratio of 31.6%, ensuring that shareholders receive attractive investment returns.

In conclusion, the influence of the wedding season on stock markets is a fascinating phenomenon to observe. As consumer preferences shift with the changing seasons, certain stocks tend to outperform during this time of heightened demand for wedding-related products and services.

The above companies have shown impressive profit growth rates and displayed financial stability and substantial dividend payouts, making them attractive investment options for those looking to ride the wave of the wedding season. 

As we have already entered the wedding season, you can keep an eye on these stocks that may shine brighter during the season of union and joy.

 

Related Articles:  How to Earn 1000 Rupees Everyday From Stock Market | Dividend Paying Stocks in November 2023 

 

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