look news india
In Indian culture, the holy festival of Dhanteras is not limited to just buying physical gold, silver, jewelery and utensils. With increasing financial literacy in the modern era, crores of retail investors are creating digital wealth on this auspicious day by investing a part of their hard-earned money in shares of quality companies on Dalal Street. Purchases made in the stock market during Dhanteras and Diwali are considered a symbol of prosperity, good luck and financial freedom for the entire coming year. During the festive season, a huge surge in consumption, automobile deliveries, jewelery purchases, real estate bookings and banking transactions is recorded in both rural and urban markets. This historic demand has a direct positive impact on the income and quarterly profits of the companies concerned. Market experts and top brokerage firms have shortlisted 20 select and fundamentally strong stocks to include in the portfolio on Dhanteras, which offer short term momentum as well as strong opportunities for wealth compounding in the long term.
On the day of Dhanteras, there is maximum activity in the bullion and jewelery industry, due to which the shares of listed companies related to this sector come directly on the radar.
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Titan Company: This giant company of Tata Group is the undisputed leader in the organized jewelery market on the basis of its brand ‘Tanishq’. The stock remains analysts’ top choice due to festive demand, new store expansion and strong margins.
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Kalyan Jewelers India: The company’s revenues are growing rapidly due to aggressive franchise expansion and strong same-store sales growth (SSSG) in Tier-2 and Tier-3 cities.
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Senco Gold: East India’s leading jewelery retailer is now expanding its footprint nationally, and its valuations remain attractive compared to the sector average.
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Tribhovandas Bhimji Zaveri – TBZ: This midcap jewelery stock is showing strong momentum due to huge festive demand for traditional and light weight designer jewellery.
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Muthoot Finance: Due to high prices of gold, there is a sharp increase in the demand for gold loans. Being the country’s largest gold loan NBFC, the company’s assets under management (AUM) and profitability are at record levels.
On Dhanteras, deliveries of two-wheelers, four-wheelers and SUVs reach record levels, giving a huge boost to the performance of auto companies. 6. Maruti Suzuki India: The company is the main beneficiary of festive sales due to its more than 40% share in the passenger vehicle market and huge demand for CNG and hybrid models. 7. Mahindra & Mahindra: The company’s outlook is extremely bullish based on the long waiting list of its Thar, Scorpio-N and XUV series and strong rural demand (tractor sales). 8. Tata Motors: Jaguar Land Rover’s (JLR) market share of over 70% in the passenger EV segment and improving margins make the auto giant an essential part of the portfolio. 9. TVS Motor Company: The stock is continuously touching new peaks on the back of aggressive growth in the two-wheeler and electric scooter (iQube) segments and exports of premium sports bikes. 10. Bajaj Auto: The premium Pulsar range, the partnership with Triumph and strong demand for the Chetak electric scooter have taken the company’s operating margins to historic levels.
During festivals, the consumption of home painting, new electronics and packaged foods increases manifold, which leads to a sharp increase in the cash flow of these companies. 11. Asian Paints: The country’s largest paint company is getting huge volume growth from festive home decoration and real estate delivery. 12. Havells India: Demand for Lloyd Consumer’s ACs, Refrigerators and premium home appliances and switchgears has reached its peak during the festive season. 13. Voltas (Voltage): This Tata Group company is taking full advantage of the festive offers with a strong market share in home appliances and commercial cooling. 14. Hindustan Unilever Limited – HUL: The improvement in rural demand and increasing consumption of festive gifting packs offers the country’s largest FMCG company the option of stable and secure returns. 15. Trent Limited: The Tata company, which has revolutionized value and premium retail fashion through Westside and Zudio, is breaking all retail sales records.
There is a sharp growth in personal loans, auto loans and credit card swipes to finance festive purchases, which is providing tremendous support to financial stocks. 16. State Bank of India – SBI: The country’s largest public sector bank remains a favorite of investors due to its strong loan growth, falling NPA and attractive valuation. 17. HDFC Bank: As a market leader in credit cards and consumer financing, it strengthens the private lender’s portfolio. 18. Bajaj Finance: The uncrowned king of ‘No-Cost EMI’ financing of electronic gadgets and consumer durables, with an unmatched pace of new customer acquisition. 19. Larsen & Toubro – L&T: The infra giant, with a strong order book for infrastructure construction and mega projects in the country, is a long-term wealth creator. 20. Bharat Electronics Limited – BEL: This Navratna Defense PSU is in a strong position on the basis of indigenization in the defense sector (Make in India) and continuous orders from the government’s defense budget.
While deciding to invest in the stock market on Dhanteras, it is very important to adopt a disciplined financial strategy instead of just getting carried away by the festive enthusiasm. First of all, instead of investing all the money in a single share or sector, allocate your funds in a balanced manner (Asset Allocation) across jewellery, auto, banking and FMCG sectors. Second, completely avoid penny stocks or unverified tips going viral on social media and choose only those companies with clean corporate governance and low debt burden. The third and most important rule is to hold the shares bought on Dhanteras for at least a year (till next Diwali) or more. Only when you give companies enough time to expand their business and show the power of compounding, the real Dhanteras prosperity gets permanently established in your portfolio.