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With the beginning of the festive season, tremendous buying enthusiasm is being seen in the Indian stock market. On the auspicious occasion of Rakshabandhan along with the sacred bond of brother and sister, investors are looking for strong investment options to strengthen their portfolio and achieve future financial goals. In view of the festive demand, strong corporate earnings and surge in domestic consumption, leading market analysts and leading brokerage houses have identified 20 such multibagger stocks, which can provide huge profits to investors in the coming times.
If you are also preparing to make new investments in the market on the day of Rakshabandhan, then understand the fundamentals, growth triggers and investment strategy of these 20 stocks in detail before the opening bell rings.
From Rakshabandhan to Diwali and New Year, private consumption in the Indian economy is at its peak. During this period, record sales of gifts, sweets, new clothes, gold and silver jewellery, electronic gadgets and automobiles are recorded.
Market analysts believe that volume growth and better margins of companies have a direct impact on their quarterly results, due to which there is a strong rise in the shares of companies in these sectors.
The consumer and jewelery sector gets the biggest benefit from the increase in gifting and retail purchases during the festive season:
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Titan Company: The company’s revenue growth will directly benefit from the huge demand for gold and diamond jewelery as well as watches under the Tanishq and Mia brands.
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Trent Limited: The stock is continuously touching new highs due to aggressive expansion and record footfall of retail stores like Westside and Judio.
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Kalyan Jewellers: Rapid opening of new showrooms in non-south markets and strong festive demand are expected to boost volumes.
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Avenue Supermarts (DMart): DMart’s operating efficiency remains strong on the back of strong sales of grocery and packaged foods.
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Vedant Fashions – Manyavar: There are strong signs of improvement in the company’s margins due to increase in demand for ethnic wear in the upcoming weddings and festive season.
Festivals see bumper deliveries of new vehicles in both rural and urban markets:
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Tata Motors: The stock is getting major support from JLR’s strong cash flows along with market leadership in the passenger vehicle and electric vehicle segments.
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Mahindra & Mahindra (M&M): The long waiting list and strong order book of SUV and Thar series are expected to keep the company’s earnings on a steady rise.
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Hero MotoCorp: A big jump in the company’s volumes is possible due to improvement in the rural economy and increase in demand for entry-level commuter bikes during the festive season.
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Bajaj Auto: The growing demand for premium bikes and Chetak EV along with the recovery in exports makes it a strong pick.
Performance of FMCG companies is set to improve due to increase in consumption of sweets, gift packs and packaged drinks:
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Hindustan Unilever (HUL): The FMCG major remains a long-term buy on the back of pricing power and volume recovery in the personal care and home care segments.
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Dabur India: Festive demand for real fruit juices and ayurvedic healthcare products will drive strong revenue growth for the company.
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Varun Beverages: It continues its aggressive expansion in both international and domestic markets with PepsiCo as its bottling partner.
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Nestle India: The company is benefiting from strong brand value and distribution network in the packaged foods, chocolates and confectionery segments.
The huge increase in consumer loans, no-cost EMIs and digital transactions during the festive season has a direct impact on lenders:
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HDFC Bank: The stock is expected to rise again on the back of pick-up in retail loan growth and strengthening of balance sheet post merger.
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Bajaj Finance: Being the undisputed market leader in EMI financing of consumer durables and electronics, it is likely to deliver a strong quarterly performance.
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ICICI Bank: Excellent asset quality, high ROA and strong credit growth make it a favorite stock in the private banking space.
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SBI Cards: Due to the surge in e-commerce and offline merchant spends during the festive season, there is sure to be a big increase in the company’s fee-based revenue.
There is a strong increase in the sales of TV, fridge, washing machine and kitchen appliances during festivals:
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Havells India: Strong demand for Lloyd consumer brands and premium home appliances will boost the company’s topline.
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Voltas: Brokerages are bullish on it based on strong market share and supply chain efficiency in the AC and home appliances segment.
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Polycab India: There is strong growth momentum in the cables, wires and FMEG segments driven by infrastructure boom and home renovation.
Market analysts suggest that during the festive season, do not invest all your money in one sector only by looking at short-term trends.
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Diversified Portfolio: Divide your investments among different strong sectors like Auto, Banking, FMCG and Retail.
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SIP or Buy on Dips: Adopt a strategy of buying quality stocks in installments instead of lump sum investment at high market levels.
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Strict adherence to stoploss: Short-term traders should maintain a strict stoploss on every trade so that their capital is protected from any global uncertainty.
(Disclaimer: Investing in stock market is subject to market risks. Please consult your SEBI registered financial advisor before trading or investing in any stock.)