10 stocks to play the great Indian wedding boom

I recently attended a friend's wedding, and while witnessing the joy of the couple, I found myself reflecting on the economic landscape of India's booming wedding industry. This sector boasts a vast, interconnected ecosystem, working seamlessly to bring a couple’s big day to life. Remarkably, it’s larger than the auto and IT sectors and continues to expand annually.

As a fresh wedding season approaches, investor interest is surging, particularly in stocks tied to the wedding economy. 

According to data from the Confederation of All India Traders (CAIT), wedding-related expenditures are projected to reach an astounding ₹5.9 trillion between November and December 2024, with nearly 4.8 million weddings anticipated. This represents a significant increase from last year’s figure of ₹4.3 trillion. 

In Delhi alone, around 450,000 weddings are expected to contribute ₹1.5 trillion in business. While we often associate weddings with hotels, jewellery, and apparel, the industry's scope goes well beyond these sectors.

Let’s take a look at the top 10 companies poised to benefit from the upcoming wedding season.

#Titan Co Ltd 

Unsurprisingly, Titan, part of the Tata group, is often the first name that comes to mind when thinking of wedding-related stocks. Approximately 90% of its revenue is derived from its jewellery division, which includes popular brands like Tanishq, Zoya, Mia, and CaratLane. 

Additionally, Titan’s watches are a popular wedding gift, and its venture into ethnic wear through its brand Taneira taps into another key segment of wedding purchases. Over the past five years, Titan’s revenue, operating profit, and net profit have grown at a compounded annual growth rate (CAGR) of 19%, 17%, and 18%, respectively. 

With plans to expand its retail presence and launch new product lines, Titan is well-positioned to capitalize on the growth of the Indian wedding market.

#Vedant Fashions

Next on the list is Vedant Fashions. Known for its flagship brand Manyavar, Vedant is a major player in the celebration wear space. Its portfolio also includes Mohey and Manthan, catering to both men’s and women’s ethnic wear.

The company’s strong retail presence, with 662 stores across 263 cities, has helped it capture a significant share of the wedding market. Financially, Vedant Fashions has grown its revenue by a CAGR of 8.4% over the past five years, led by strong demand. Operating and net profit also grew at a CAGR of 11% as the celebration wear market is less price sensitive than casual weal market.

As a result, operating and net profit margins averaged 51.7% and 28.3%, respectively, during the period. 

As the wedding industry flourishes, the company’s store expansion strategy within and outside India will likely fuel further growth.

#Raymond

Next on the list is Raymond, one of the leading players in the suiting business, commanding over 60% of the market share. With a legacy of more than 95 years, Raymond is the largest branded fabric player in the organized shirting segment. The company boasts a manufacturing capacity of over 10 million garments and a robust retail presence, with 1,581 stores in India and more than 45 international locations. Additionally, it exports to over 90 countries.

Given that suits are a wedding staple, Raymond is well-positioned to benefit from the anticipated surge in weddings. Over the past five years, the company’s revenue has grown at a CAGR of 6.8%, while operating profit and net profit have surged 20.8% and 52.1%, respectively. Its operating and net margins have expanded steadily, currently standing at 18% and 17%.

Raymond is focusing on expanding its retail network and strengthening its export order book. Recently, the company has diversified into emerging sectors such as defence, aerospace, and electric vehicles (EVs), enhancing its portfolio. With the Indian wedding industry set for strong growth, Raymond is poised to be a major beneficiary of this trend.

#Indian Hotels Co 

Indian Hotels Co Ltd (IHCL) is a key player in the hospitality sector and a prominent beneficiary of the wedding industry’s growth. In today’s landscape, weddings often span three to five days, with multiple events hosted in a single location, typically luxurious hotels offering convenience and comfort to guests. This trend has made weddings a significant contributor to the hotel industry’s revenues.

IHCL, known for its iconic Taj Hotels, is one of the largest hospitality companies in India, consistently recognized as a top hotel stock. The company’s portfolio includes 218 operational hotels, boasting 24,136 rooms across its brands—Taj, Vivanta, Ginger, and SeleQtions. With an increasing demand for lavish, yet intimate, wedding celebrations, IHCL has become a preferred choice not just in India but globally.

The company’s financial performance has been robust, driven by strong demand. Over the past five years, its revenue grew at a CAGR of 8.7%, while operating profit and net profit expanded by 16.3% and 27.9%, respectively. Margins have also steadily improved during this period.

To capitalize on the growing demand, IHCL is actively expanding its portfolio, both in India and internationally. Given the central role that location and food play in weddings, the company is well-positioned to continue benefiting from this trend in the medium term.

#Kalyan Jewellers

Kalyan Jewellers is one of India’s oldest family businesses, with a legacy spanning over a century. As one of the largest jewellery retailers in the country, it manufactures and sells a diverse range of gold, studded, and other jewellery products across various price points. The company holds a 6% market share in the organized jewellery market, with well-known brands such as Nimah, Ziah, and Tejasvi.

With a robust presence in India, Kalyan Jewellers operates over 214 showrooms and 1,011 grassroots stores across 23 states and union territories. Internationally, it has expanded to 36 showrooms across five countries. Given the cultural significance of gold in weddings, Kalyan Jewellers is a key beneficiary of the wedding season’s demand surge.

The company’s revenue has grown at a compound annual growth rate (CAGR) of 12.9% over the last five years, while its operating and net profits have increased by 10.4% and 33.2%, respectively. To continue its growth, Kalyan Jewellers plans to expand its store network, aiming to strengthen its pan-India presence.

Additionally, the company is focused on brand building and has launched a customer outreach initiative, ‘My Kalyan.’ As the wedding industry continues to thrive, Kalyan Jewellers is well-positioned for sustained financial growth.

#Dixon Technologies

Dixon Technologies may not be the first name that comes to mind when thinking about wedding-related stocks, but it should be. Smartphones and consumer electronics, which are among the most popular wedding gifts in India, significantly contribute to Dixon’s business.

As India’s largest contract manufacturer of televisions, washing machines, smartphones, LED bulbs, and CCTV security systems, Dixon serves major clients like Samsung, Panasonic, Bajaj, and Philips. With 17 manufacturing units across the country, the company also assembles approximately 15% of all TVs sold in India for brands like Samsung, Panasonic, Xiaomi, TCL, and OnePlus.

Financially, Dixon has been on a strong growth trajectory. In FY24, its revenue surged by 45% to ₹177.1 billion, while net profit grew by 47% to ₹3.8 billion, supported by stable operating and net margins. The company has also improved its cash flow position, allowing it to reduce debt over the past few years.

In the first quarter of FY25, Dixon generated ₹65.8 billion in revenue, and its order book remains robust across all segments. With ambitious plans to become a major player in smartphone manufacturing, the company currently produces over 15 million smartphones and 38 million feature phones annually, with plans to significantly increase this output in the coming years.

Looking ahead, Dixon plans to invest ₹6 billion in capital expenditure to establish a new factory for washing machines, further strengthening its position in the consumer electronics space.

#Voltas

Next on the list is Voltas, a Tata group company and the undisputed leader in the room air conditioner market for over a decade. Voltas has consistently held the No. 1 position in this category, maintaining its edge over competitors. Founded in 1954, the company is also recognized globally as a leading engineering solutions provider and project specialist, with a strong presence across India, the Middle East, Southeast Asia, and Africa.

So, how does Voltas benefit from the wedding industry? In India, the festive season, which begins with Onam and spans Durga Puja to Diwali, contributes about one-third of the annual sales across various categories. However, the sales momentum continues well into the wedding season, which lasts until March. Popular wedding purchases include electronic items like air conditioners, refrigerators, and televisions, making Voltas a key beneficiary during this period.

In FY24, Voltas saw a 35% growth in sales, crossing two million units sold—the first company in the domestic market to achieve this milestone. This performance was driven by strong demand for cooling products, supported by a robust offline and online distribution network, as well as new product launches.

Voltas is currently expanding its retail and distribution network to accommodate its growing product portfolio. The company is also pursuing backward integration for key components like heat exchangers, cross-flow fans, and plastic parts. Additionally, Voltas is focusing on international markets to further boost revenue and profits.

#TVS Motor Company 

Motorcycle manufacturers often see a significant boost in sales during the wedding season, and for good reason. In rural and semi-urban areas, which make up over 40% of the two-wheeler market, it is quite common for a groom to purchase or be gifted a commuter bike as part of the wedding festivities.

TVS Motor Company, known for its popular models such as TVS Jupiter, TVS Ntorq, TVS Scooty Pep+, the Apache Series, and TVS Sport, is well-positioned to benefit from this seasonal demand. With manufacturing facilities in Tamil Nadu, Karnataka, and Himachal Pradesh, TVS is also the only listed player in India’s moped segment.

Looking ahead to FY25, TVS is expected to see an improvement in market share, driven by the shift towards premium models and the festive season sales boost. The company has already outperformed its peers in the motorcycle and scooter segments, and it is gearing up to accelerate its electric vehicle (EV) launch plans. TVS aims to ramp up its capacity to manufacture 50,000 EVs per month and is preparing to enter the electric three-wheeler market, targeting both cargo and passenger vehicles.

Additionally, TVS has been expanding its portfolio by acquiring electric bicycle brands in Europe, with plans to launch electric bicycles in India soon, further enhancing its growth prospects.

#Arvind Fashions  

Arvind Fashions Ltd operates across the branded apparel, beauty, and footwear sectors, with a diverse portfolio of owned and licensed global brands. Its lineup includes popular names like Calvin Klein, Tommy Hilfiger, US Polo Assn, Sephora, Arrow, and Aeropostale, covering both casual and formal segments.

The company’s management has consistently highlighted the potential for improved margins during key seasons such as festivals, weddings, and winter. However, in the first quarter, retail footfall was impacted by subdued market conditions and fewer wedding dates. Despite this, the management remains optimistic, anticipating stronger sales in the coming months.

Looking ahead, Arvind Fashions plans to expand its retail footprint and enhance product offerings to meet evolving market demands.

#Trent 

Trent, another Tata Group company, operates retail stores under the brand names Westside, Zudio, Star, and Landmark. With its presence across all segments of fashion—from value to luxury—Trent is well-positioned to benefit from the upcoming wedding season. The company typically experiences a sharp rise in same-store sales and increased average bill sizes during this period.

Trent’s newly launched Zudio outlets, catering to budget-conscious consumers, have been a major success. The company opened a record 203 new Zudio stores in FY24, expanding into 46 new cities. As demand for apparel continues to grow, Trent plans to introduce several new labels, offering an even wider range of products in its stores.

Looking ahead, Trent expects 10% of its sales to come from its new shopping site, westside.com. Currently, Westside operates 169 stores across 88 cities, offering branded apparel, footwear, accessories, and home furnishings through its owned labels. Trent’s inclusion in the Nifty50 index and potential entry into the BSE Sensex signals its growing prominence in the market.

Conclusion 

Investing in thematic stocks, like those tied to the wedding season, can be exciting for some investors, offering the potential for quick returns during specific times of the year. However, it's important to remember that the stock market doesn't guarantee easy returns. 

Performance in such thematic sectors may not always meet expectations, and investors should exercise caution—especially when it comes to valuations. Be mindful not to buy wedding stocks that are already priced to perfection.

Happy investing.

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such.

This article is syndicated from Equitymaster.com