Buy, Sell Or Hold: Titan, Indian Hotels, Manyavar Shares In Focus As Wedding Season Begins
The wedding season in India, projected to generate Rs 6 lakh crore in business, is boosting discretionary spending, with stocks like Titan, Indian Hotels, and Vedant Fashions benefiting.
The wedding season, which has commenced in India, has drawn focus on stocks that move on rise in discretionary spending by consumers. These include luxurywear maker Titan Co., resorts operator Indian Hotels Co., and Manyavar brand owner Vedant Fashions Ltd., among others.
A note released by Sharekhan by BNP Paribas recommends 'buy' on five stocks—Indian Hotels, Vedant Fashions, and Titan, along with United Spirits Ltd. and Safari Industries (India) Ltd.
The brokerage, which is "bullish" on these five stocks, has set a price target range of Rs 780-800 for Indian Hotels. The upper end of the price target implies an upside of 9.7% against the company's closing price of Rs 729 per share on Monday.
For Vedant Fashions, Sharekhan has set a price target of Rs 1,521-1,600 per share. The upper price target suggests an upside of 13.6% against the previous close of Rs 1,408 per share.
For Titan, the price target has been set in the range of Rs 3,500-3,800 per share. At the higher level, it implies an upside of 18.5% from the last closing price of Rs 3,206.
For Safari, the price target is fixed as Rs 2,500-2,800. At the higher end, it suggests an upside of 21.7% from Monday's closing price of Rs 2,300.
Sharekhan's target price for United Spirits is in the range of Rs 1,560-1,615 per share. At the upper end, it implies an upside of 9.4% from the previous closing price of Rs 1,476.
The brokerage note comes at a time when scores of investors look at the stocks to buy, sell or hold in the wedding season. Sharekhan, while sharing its recommendation, cited a recent study of the Confederation of All India Traders that projects a total of 48 lakh weddings to be held in the country between Nov. 12 and Dec. 16.
These weddings are expected to generate business worth nearly Rs 6 lakh crore, according to the CAIT study. Last year, 35 lakh weddings during this season created business worth Rs 4.25 lakh crore, it said.
The cumulative expenses in the wedding season are divided between goods and services, CAIT Secretary General Praveen Khandelwal explained.
Around 10% of the expenses in the goods category are on clothing, sarees, lehengas, and apparel; 15% on jewellery; 5% on electronics and appliances; 5% on dry fruits, sweets, and snacks; and another 5% on groceries and vegetables, he said.
In the services category, expenditures will likely go toward banquet halls, hotels, and venues (5%), event management (3%), tent decoration (10%), catering services (10%), floral decorations (4%), transportation and cab services (3%), photography and videography (2%), orchestra and music (3%), lighting and sound (3%), and other services (7%), the release added.
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