60 Days. 48 Lakh Weddings. 6 Lakh Crore in Spends and Top 10 Stocks that Could Benefit

I recently attended a friend's wedding.

Not only was it amazing to see how happy the couple was, but it also allowed me to do some in-depth thinking about where we currently stand from an economic perspective when it comes to the wedding industry.

This industry has a fascinatingly diverse ecosystem which works harmoniously to bring everything together on a couple's wedding day.

It's one of the biggest industries in India, bigger than the auto and information technology (IT) sectors... and it's growing steadily every year.

As the next few weeks are expected to bring strong demand given the upcoming wedding season, investors are gung-ho on the top wedding stocks.

To put things into perspective, data released by the Confederation of All India Traders (CAIT) mentions about the massive expenditure of Rs 5.9 lakh crore in the upcoming wedding season from November 2024 to December 2024, which is likely to see almost 48 lakh marriages.

If achieved, it'll be a huge bump up of over Rs 1.5 lakh crore compared to last year's figure of Rs 4.3 lakh crore.

In Delhi alone, an estimated 4.5 lakh weddings are expected to contribute Rs 1.5 lakh crore in business during the wedding season.

When we think of weddings, we usually think of hotels, food & beverages, jewellery, and apparel. Of course, it's much bigger than that.

In this article, we will look at the top 10 companies that could be the biggest beneficiaries of the upcoming wedding season.

#1 Titan

No surprises here.

Titan is usually the first company that comes to everyone's mind when thinking about wedding stocks in India.

The company drives close to 90% of its revenue from its jewellery division. It sells jewellery through its brands Tanishq, Zoya, Mia, and CaratLane.

The company's watches also see strong demand as a popular gift during the wedding season.

It recently expanded into the clothing business by launching a new brand Taneira, which has sarees and ethnic wear, which again make up a large portion of the wedding purchases.

With gold being considered an auspicious metal, the demand for Titan's products goes up during the wedding season.

Coming to its financials, over the last 5 years, Titan's revenue, operating profit, and net profit grew by a CAGR of 19%, 17%, and 18% respectively.

Diversified business, strong leadership in the market, new product launches helped the revenue and profit growth.

Its operating profit and net profit margins averaged at 11.6% and 6.8% respectively over the last five years.

Currently, the company is focussing on retail expansion of Tanishq stores and expanding its new business segment namely dresswear and fragrance.

As the Indian wedding market is witnessing strong growth, Titan is set to witness strong growth in the medium term.

To know more, checkout Titan's financial factsheet and latest quarterly results.

#2 Vedant Fashions

Next on this list is Vedant Fashions.

It is one of the largest celebration wear companies with a diverse portfolio of brands such as Manyavar, Mohey, and Manthan. It's one of the most direct plays in the Indian wedding industry.

The company's product offerings include men's ethnic wear, celebration wear, Indo-western wear, and women's ethnic wear.

It operates is business through franchisee owned exclusive brand outlets, multi brand outlets, large format stores, and online platforms.

It has a strong retail presence with over 662 stores across 263 cities, of which 17 are present in international locations.

Coming to its financials, in the past 5 years, the company's revenue has grown at a compound annual growth rate (CAGR) of 8.4% on account of strong demand.

The operating and net profit also grew by a CAGR of 11% as the celebration wear market is less price sensitive than casual weal market.

This is the reason why the company's operating profit margin and net profit margin averaged at 51.7% and 28.3% respectively.

With the Indian wedding market growing at a strong rate, the company is focussing on store expansion within and outside India.

To know more, checkout Vedant Fashion's financial factsheet and latest quarterly results.

#3 Raymond

Next on the list is Raymond.

The company is one of leading players in the suiting business with a market share of over 60%.

With a track record of over 95 years, the company largest branded fabric player in the organised shirting segment.

It has a manufacturing capacity of over 10 million (m) garments and a strong retail presence of 1,581 stores in India, and over 45 stores in international locations.

The company also exports its products to over 90 countries across the world.

With suits being a staple of weddings, Raymond stands to strongly benefit from the growth in weddings.

The company grew its revenue at a CAGR of 6.8% in the last five years. Its operating profit and net profit grew by a CAGR of 20.8% and 52.1% respectively during the same period.

The operating margin and net margin also consistently expanded and currently stand at 18% and 17% respectively.

The company is focussing on expanding its retail network, and its export order book.

It recently, forayed into sunshine sectors like defence, aerospace, and EVs strengthening its portfolio.

As the Indian wedding industry is all set to witness strong growth, Raymond will be one of primary beneficiaries of this growth.

To know more, checkout Raymond's financial factsheet and latest quarterly results.

#4 Indian Hotels Company

Fourth on the list is Indian Hotels Company.

It's no surprise that a company from the hospitality industry is also on our list.

Weddings these days have become elaborate 3 or 5-day ceremonies where several events are hosted in a single location.

To make it convenient and easy for the guests, they are usually hosted in hotels where the rooms and banquet halls are available.

Over the years, weddings have become a significant contributor to total revenues generated by the hotel industry.

Indian Hotels Company is one of the largest hospitality players in the country and is considered as one of the best hotel stocks in India.

Its iconic brand, Taj Hotels, have been consistently ranked among the top hotels in the world.

The company has a portfolio of 218 operational hotels with a total inventory of 24,136 rooms across various brands such as Taj, Vivanta, Ginger, and SeleQtions.

With growing demand for lavish yet intimate wedding celebrations, Indian Hotels Company is turning out to be one of the top choices across the world.

This is the reason why the company's financials are on a roll. The revenue grew by a CAGR of 8.7% during the last five years on account of strong demand.

The operating and net profit also grew by a CAGR of 16.3% and 27.9% respectively and the margins have expanded over the last five years.

Currently, the company is planning to expand its portfolio in different locations across India and the world.

The location and food always take a centre stage at a wedding. This will drive the growth of Indian Hotels Company in the medium term.

To know more, checkout Indian Hotels Company's financial factsheet and latest quarterly results.

#5 Kalyan Jewellers

Next on the list is Kalyan Jewellers.

The company is one of the oldest family businesses in India with a legacy of over a century.

It is one of the largest jewellery retailers in India that manufactures and sells a range of gold, studded and other jewellery products across various price points.

It has a market share of 6% in organized jewellery market and some of its well-known brands are Nimah, Ziah, and Tejasvi.

Kalyan Jewellers has a strong presence in India with over 214 showrooms, 1,011 grassroot stores, across 23 states and union territories. It also has over 36 showrooms across five countries.

With gold being an auspicious metal which is purchased during weddings, the company is one of the primary beneficiaries in the wedding season.

Due to strong demand, the company's revenue has grown by a CAGR of 12.9% in the last five years. The operating and net profit also grew at a strong CAGR of 10.4% and 33.2% respectively.

Kalyan Jewellers is planning to add more stores to expand geographically and achieve its goal as a pan-India business.

It is also focussing on brand building and launched customer outreach initiative names 'My Kalyan'.

With wedding industry growing strongly, Kalyan Jewellers will also witness strong growth in its financials.

To know more, checkout Kalyan Jewellers' financial factsheet and latest quarterly results.

#6 Dixon Technologies

Dixon Technologies is not a name that comes to mind immediately when looking for wedding stocks but it should be.

There is no doubt about the contribution of the Indian wedding industry to this company. Smartphones and consumer electronics are among the most popular wedding gifts in India.

Dixon is India's largest contract manufacturer of televisions, washing machines, smartphones, LED bulbs, and CCTV security systems.

Its clients are companies such as Samsung, Panasonic, Bajaj, and Philips. It has 17 manufacturing units in India.

Dixon is also the biggest manufacturer of LED TVs in India for the likes of Samsung, Panasonic, Xiaomi, TCL, OnePlus, and more. About 15% of all TVs sold in India are assembled by the company.

Coming to its financials, in FY24, the company's revenue and net profit grew 45% and 47% to Rs 177.1 bn and Rs 3.8 bn, respectively. The company achieved this with stable operating and net margins.

The company has been repaying debt over the past few years as its cash flow position has improved.

In the first quarter of FY25, Dixon has already generated Rs 65,800 m in revenue. Dixon's order book remains strong across all business segments.

The company has its eyes set on becoming a major player in smartphone manufacturing. It currently produces over 15 million smartphones and 38 million feature phones annually. The company is aiming to ramp up this figure significantly over the next few years.

Going forward, it is planning to invest Rs 6,000 million in capex to set up a new factory for washing machines.

For more details, see the Dixon's financial fact sheet.

#7 Voltas

Next is Voltas.

Voltas, a Tata group company is the undisputed market leader in the Room Air Conditioner category for more than a decade, consistently maintaining the No. 1 position, and has steadily maintained its lead over the competition.

Founded in 1954, the company is also globally recognised as an engineering solutions provider and a project specialist.

It enjoys a strong presence across India, the Middle East, South East Asia, and Africa.

How does Voltas benefit from the wedding industry you ask?

Typically, in India, the festive season starts from Onam, it covers Durga Puja and goes on till Diwali. The season contributes around one-third of the overall annual sales value across categories of the industry.

Still, the sales continue to remain elevated as the wedding season follows immediately, up until the month of March next year.

Electronic items such as televisions, air conditioners, refrigerators, etc, are popular purchases by the bride and groom or as a gift given by family and friends on the occasion.

In FY24, Voltas recorded a 35% sales growth to over two million units, becoming the first company in the domestic market to cross this mark.

The performance was attributed to a consistent demand for cooling products during the year, coupled with a strong offline and online distribution network, and new innovative launches.

Voltas is currently expanding its retail and distribution network to cater to its growing product portfolio. The company is looking at backward integration for certain products, including heat exchangers, cross-flow fans, and plastic components.

It also plans to focus on its international operations to expand its revenue and profits.

For more details, see the Voltas company fact sheet and quarterly results.

#8 TVS Motor Company

Motorcycle manufacturing companies often look forward to the wedding season as it is a major contributor to their sales and performance for the year.

One must bear in mind that over 40% of the two-wheeler market is in rural and semi-urban areas and it is very common for a groom to either purchase or be gifted commuter bikes on the occasion.

TVS Motor Company is known for its scooter and motorcycle offerings including popular ones like TVS Jupiter, TVS Ntorq, TVS Scooty Pep+, Apache Series, TVS Sport, among others.

It currently manufactures at its manufacturing facilities located at Tamil Nadu, Karnataka and Himachal Pradesh. It's the only listed player in India in the moped segment.

In the coming quarters of FY25, TVS Motor is expected to see an improvement in market share on the back of premiumisation and as festive season kicks off.

The company has recorded higher growth in the motorcycle and scooter segments as compared to industry peers.

TVS Motor is all set to accelerate its EV launch plans in FY25. TVS would be increasing its capacity to manufacture 50,000 electric vehicles per month.

It also has plans to enter the electric three-wheeler segment with both cargo and passenger vehicles. It has been acquiring electric bicycle brands in Europe and the company has a plan to launch an electric bicycle in India soon.

To know more, check out TVS Motor Company financial factsheet.

#9 Arvind Fashions

Arvind Fashions Ltd operates in the branded apparels, beauty and footwear space. It has a portfolio of several owned and licensed global brands across different segments.

The company operates several brands across casual and formal segments including Calvin Klein, Tommy Hilfiger, US Polo Assn, Sephora, Arrow, Aeropostale.

The company's management has time and again guided for better margins during the festival season, wedding season, and the winter season.

For instance, during the first quarter owing to subdued market conditions and fewer wedding dates, the company's retail footfall was impacted.

However, the management is optimistic and looking forward to an optimistic few months going forward...

The company has plans for further retail space expansion and enhancement of product offerings to align with market demands.

For more details, see the Arvind Fashions company fact sheet and quarterly results.

#10 Trent

Yet another Tata Group company, Trent operates retail stores under the brand names Westside, Zudio, Star, and Landmark.

Companies like Trent, which are present in all segments of fashion including value to luxury products stand to benefit from the upcoming wedding season.

The company typically sees sharp improvement in same-store sales and increase in average bill size during this period.

Trent's newly launched Zudio outlets have been a resounding success. The stores cater to budget-conscious consumers. The sharp rise in footfalls in these stores have aided to the overall growth of Trent.

A record 203 new stores of Zudio were opened during FY24 while entering 46 new cities during the year.

With the growing demand for apparel from its customers, Trent plans to launch several new labels under its portfolio to ensure wide variety in its stores.

Looking ahead, Trent expects to generate 10% of its sales from its new shopping site, westside.com.

Currently, Westside operates 169 stores across 88 cities, offering a range of branded apparel, footwear, accessories, and home furnishings, primarily through its owned labels.

Previously, Tata Unistore, which manages the e-commerce platform Tata CLiQ, exclusively sold Westside branded products, including clothing, footwear, and home items.

Trent has recently taken a coveted spot in the bluechip Nifty50 index with reports also stating that it may soon enter BSE Sensex.

For more, check out Trent's financial factsheet.

Conclusion

Considering thematic stocks like these can be exciting for some investors. They offer the potential for quick returns during a certain time of the year.

However, it's important to understand that the stock market doesn't provide easy returns to anyone.

Returns from such themes may not match investors' expectations. Therefore, one must view wedding stocks with the same amount of caution as one would view other stocks.

Also be cognizant of the valuations dear reader. You should not end up buying wedding stocks which have already been priced to perfection.

We encourage you to do your own research on Indian wedding stocks using What are the 3 main types of stock?' stock screener: Top Wedding Related Companies in India.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...