Motilal Oswal Wealth Management has shared a basket of five listed consumption names that it says are poised to benefit from the ongoing wedding season, and are expected to do well over medium-to-long term.
The note mentions Jewellery, Retail, Hotels and Automotive sectors to benefit from this year's marriage season. Assigning equal weight to the five stocks, Motilal Oswal Wealth report said Titan, Eicher Motors, Vedant Fashion, Safari and Lemon Tree could see an upside of 10-15% over 3-6 months.
The report cites estimated business of Rs 6 lakh crore arising from 48 lakh weddings, spread across the November-December wedding period, citing data from Confederation of All India Traders (CAIT).
Here's the investment rationale as shared by the Motilal Oswal Wealth report.
Titan: The wedding jewellery demand has been rising, supported by the recent customs duty reduction. This momentum, Motilal says, is expected to sustain for the next two quarters, with Titan best-placed to leverage its strong competitive edge to outperform other branded players.
Eicher Motors: Royal Enfield is experiencing improved demand post the festive season, driven by new launches, availability, and enhanced promotional activities designed to capture consumer interest.
Vedant Fashions: Apparel demand is projected to grow, fuelled by the extended wedding period, starting November 12. The brand's expansion of Manyavar range and entry into newer categories are anticipated to drive future growth, Motilal Oswal Wealth note said.
Safari Industries: Revenues are expected to rebound, supported by pre-festive inventory stocking and a recovery from the heatwave-affected June quarter. The upcoming greenfield plant in Jaipur is set to contribute significantly to revenue from Q3FY25 onwards, as per the report.
Lemon Tree Hotels: The company looks set to maintain strong growth in the second half of the fiscal. Its flagship Aurika Mumbai property, a robust wedding season, and favourable market dynamics are expected to boost occupancy and room rates, along with EBITDA margins, Motilal Oswal Wealth note said. Chairman and Managing Director Patanjali Keswani told CNBC-TV18 this month that it expects a strong performance in H2FY25, helped by improved average room rates (ARR) at Aurika Mumbai. Close to 25% of Lemon Tree's inventory has been recently refurbished, the management said.
This fiscal, H2FY25 will see 41 wedding days whereas last fiscal, the second half saw 30 dates, which may result in an extended opportunity to boost economic activity.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
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