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CAIT said that it expects business worth Rs 5 lakh crore from weddings.Did you know that an estimated 10 million weddings take place in India every year?10 million! Yes, that’s right. They also generate revenue of over $40 billion.However, because of the pandemic, the industry’s sales fell. Restrictions on movements and large gatherings stalled millions of weddings.Now as restrictions are being lifted, an estimated 40 lakh weddings are expected to take place from mid-April 2022 to July 2022. The Confederation of All India Traders (CAIT) said that it expects business worth Rs 5 lakh crore from these weddings.Here are five companies in the listed space that could benefit from this massive spend.#1 TitanThe first stock on our list is Titan, one of the largest retailers of watches and jewellery in India.The company derives almost 80% of its revenue from its jewellery division. It sells jewellery through its brands Tanishq, Zoya, Mia, and Caratlane.With the number of weddings set to jump manifold in the next few months, the revenue of companies such as Titan are set to increase.This is because demand for gold and gold jewellery will go up. The precious metal is considered auspicious. It’s used extensively to make traditional jewellery. Besides this, it’s also a popular wedding gift.Titan has already started to reap the benefits of this pent-up demand.The company reported a strong revenue growth of 31% YoY during the December 2021 quarter, riding on robust demand during the festive season.It also reported a standalone net profit of Rs 990 crore for third quarter, up 135% over a year ago.#2 ThangamayilNext on our list is Thangamayil, another jewellery retailer.The company is one of the fastest growing jewellery retailers in the state of Tamil Nadu.Thangamayil primarily deals with four product lines – gold, silver, diamonds, and platinum. The sale of gold is a predominant source of its revenue.With a revival in demand from weddings and an uptick in gold prices, the company’s revenue is also expected to increase over the medium term.Its growth will be supported by the expansion of its network as well as opportunities presented by a large share of unorganised players in the industry.For the December 2021 quarter, Thangamayil reported a 3% YoY increase in revenue. Net profit declined almost 60% as expenses increased. However, this is set to improve as the company has implemented various cost control measures.#3 Vedant FashionsNext on our list is Vedant Fashions.The company caters to the Indian celebration wear market with a diverse portfolio of brands such as Manyavar, Mohey, and Manthan.It’s well positioned to tap into the large and growing demand for wedding finery over the next few months, with its strong brand franchise.The Indian wedding and celebration market is relatively less price-sensitive compared to casual wear. Thus the company generates healthy gross margins (over 72%) with no end of season sale or discounts offered on MRP.For the nine months ended December 2021, Vedant Fashions posted a 165% YoY growth in its consolidated net profit at Rs 220 crore. This on back of a strong operational performance. The company’s revenue also nearly doubled to Rs 750 crore.The Indian wedding and celebration wear market is pegged at around Rs 100 crore with the branded segment expected to grow at a CAGR of 18-20% by 2025.Vedant Fashions is well placed to make the most of this demand.#4 RaymondNext on our list is Raymond. The company is one of the leading players in the suiting business with a market share of over 60%. It is also the largest branded fabric player in the organised shirting segment.Since suits are a wedding staple, the company stands to benefit from the increase in weddings.Raymond has a track record of over 95 years. It also has a strong brand image assisted by a large retail network. It has a network of 1,420 stores and a dedicated retail space of 2.3 million sq. ft.For the December 2021 quarter, Raymond reported a multi-fold jump in its net profit at Rs 100 crore. Its revenue from operations also grew by 48.3% YoY.According to the company, it was the most profitable quarter in the last 10 years. It also generated free cash flows to reduce debt and is progressing towards being a net debt free business.#5 Hero MotoCorpLast on our list is Hero MotoCorp, the largest two-wheeler manufacturer in the world.The upcoming wedding season is expected to give rise to demand for two-wheelers in rural areas which are usually given as wedding gifts.This could boost sales of the company which have otherwise been in a slump as the pandemic hit festive demand.For the December 2021 quarter, Hero MotoCorp’s revenue fell 18.5% YoY on account of a weak festive season and the second Covid-19 wave. The company also reported a 31.6% YoY fall in net profit.The management has said the underlying demand drivers are intact. This should lead to positive momentum and volume support in the coming quarters, with an improvement in margins.While Hero MotoCorp’s core business still lies in the motorcycle segment, the company believes that scooters will lead the adoption of electric vehicles in the country in the near term.It has also indicated that its EV product launch plan in 2022 is intact. It will continue to focus on its EV portfolio, supported by new launches/variants at regular intervals.Should you buy wedding related stocks?If there is one industry that is not impacted by the highs and lows of the economy, it’s the Indian wedding industry. Indians are known to spend lavishly on weddings, come rain or sunshine.Besides the typical wedding expenses on venues and wedding-related services, a large amount of money is spent on home repairs and paint jobs.There is also expenditure on jewellery, apparel, footwear, electronics, motor vehicles, and various gift items.This makes wedding related stocks extremely lucrative for investors.However, one must realize that demand for these products or services is seasonal. The revenue of the companies in this space may also depend on other factors other than demand. For example, in November 2021, a jump in gold prices halted orders for the ensuing wedding season.Therefore, one must view wedding stocks with the same amount of caution as one would view other stocks. Sustained research must not be compromised despite the positive odds.Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Note: is currently not accessible due to technical reasons. We regret the inconvenience caused. Meanwhile, please access our content on You can also track us on YouTube and Telegram. This article is syndicated from story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

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