Jewellery, Retail, Hotels and Auto to benefit from extravagant marriage season this year : Motilal Oswal Wealth Management
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According to Motilal Oswal Wealth Management Ltd., approx 4.8 million weddings are lined up over the November-December month likely bringing an estimated business of Rs. 6 trillion as against 3.8 million weddings last year with business of Rs. 4.7 trillion. As per data of Confederation of All India Traders, the great Indian wedding season is back with a bang with Delhi alone seeing 4.5 Lakh weddings over November- December.
Motilal Oswal Wealth Management expects sectors like Jewellery, Retail, Hotels and Auto to benefit out of extravagant marriage season this year. It has designed a basket with 5 companies which could be key beneficiaries and do well over short to medium term.
* Titan : Wedding jewelry demand started picking up after the customs duty reduction announcement, and is expected to remain strong in the next two quarters. Titan with its superior competitive positioning, has continued to outperform other branded players.
* Eicher Motors: Royal Enfield is seeing better demand compared to the pre-festive period due to function of its new launches, good availability of all models and increased promotional activities to drive consumer interest.
* Vedant fashions: Vedant Fashions likely to witness upbeat growth on account of higher and spread-out wedding dates starting Nov’24. It has a long runway for growth with footprint expansion in Manyavar. Further, the ramp-up of newer categories provides additional growth triggers.
* Safari: Safari’s revenue are expected to increase, as demand is set to bounce back led by festive pre stocking, as compared to preceding quarter which was marred by heatwave. Greenfield plant in Jaipur will provide additional boost to revenue once it begins operations in 3QFY25E
* Lemon Tree Hotels: Lemon Tree to continue its strong growth momentum in 2H due to stabilization of Aurika Mumbai, strong wedding season & favourable demand-supply dynamics. We expect investments in renovations to result in improved OR, ARR, and EBITDA margins for the company.
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