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As Diwali, the festival of lights, approaches, investors are eager to brighten their portfolios by choosing the right stocks. In this article, we will shine a light on the top 6 stocks to watch for Diwali 2023. These stocks cover a range of sectors and have shown promising potential for the coming year.
Titan, a renowned name in the Indian watch and jewellery industry, continues to sparkle on the stock market. With a strong brand presence and consistent growth, Titan remains a favourite for long-term investors. The company’s innovative products and expanding retail footprint make it a solid choice for Diwali and beyond.
Q1FY2024 Highlights: Titan Company’s total income for the quarter was Rs 10,306 crores, up 19.2% from Q1 FY2023. Jewellery was the biggest contributor to the company’s revenue, with Rs 9,070 crores in sales and a YoY growth of 19.3%. The watches and wearables segment also saw healthy growth, with revenue of Rs 890 crores and a YoY growth of 13.4%. The eyewear segment grew 11.1% YoY, with revenue of Rs 203 crores. The emerging businesses segment, which includes Titan’s foray into fragrances and fashion accessories, saw a significant YoY growth of 36.8%, with revenue of Rs 76 crores.
Kalyan Jewellers, a household name for exquisite jewellery, is poised for an exciting journey. With a strong presence across India and a reputation for quality, Kalyan Jewellers’ stock is a precious addition to your Diwali portfolio.
Q1FY2024 Highlights: Kalyan Jewellers’ financial performance in the first quarter of FY24 exhibited remarkable strength, with impressive year-on-year (YoY) growth across key financial indicators. The company reported a substantial 34% YoY increase in revenue, reaching Rs. 36,409 crores, reflecting robust underlying operational momentum. Gross profit also experienced significant growth, surging by 31% to Rs. 5,488 crores, achieving a healthy gross margin of 15.1%. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) saw a noteworthy 23% YoY increase, amounting to Rs. 2,691 crores, with an EBITDA margin of 7.4%. Kalyan Jewellers’ Profit After Tax (PAT) recorded a substantial 35% YoY growth, reaching Rs. 2,179 crores, and boasting a PAT margin of 3.5%. The company also expanded its showroom presence by 25%, with the number of showrooms now totalling 159, compared to 127 in Q1 FY2023.
Vedant Fashions, a prominent player in the fashion industry, has been making waves in the market. With a focus on stylish apparel, the company has been delivering consistent performance. What sets Vedant Fashions apart is its flagship brand, Manyavar, which has become a significant revenue driver for the company. Manyavar, known for its elegant ethnic wear and a wide range of festive attire, has carved a niche for itself in the Indian fashion landscape.
Q1FY2024 Highlights: The company expanded its retail footprint by adding approximately 85,000 sq. ft. of net retail area in Q1 FY24, with a total retail presence of 1.56 million sq. ft. as of June 2023. The company opened its largest “World of Celebration” flagship store in Bengaluru, with approximately 22,000 sq. ft. of retail area. The company also opened three exclusive Twamev flagship stores across India in Bengaluru, New Delhi, and Hyderabad, with a total retail area of 22,000 sq. ft. cumulatively. Vedant Fashions recorded a growth in revenue from operations of 51.6% in Q1 FY24 compared to the pre-covid period of Q1 FY20. As expected, Q1 FY24 had significantly fewer weddings nationally, but management is positive and hopeful for the overall business outlook for the year as a whole, driven by the H2 period.
Bikaji Foods is a rising star in the snack and food industry. The company’s innovative product range and expansion plans are creating waves in the market. As people indulge in festive treats during Diwali, investing in Bikaji Foods can be a savoury move for investors.
Q1FY2024 Highlights: Bikaji Foods International Ltd reported a strong financial performance in Q1 FY24, with revenue and profits growing significantly YoY. Revenue grew by 15.0% to Rs. 487.72 crores, driven by volume growth. Gross margin expanded by 840 basis points to 32.8%, led by product mix and supply chain. EBITDA increased by 113.6% to Rs. 658 crores, with a margin of 13.6%. PAT jumped by 163.8% to Rs. 414 crores, with a margin of 8.5%. The company is well-positioned to continue its growth momentum.
InterGlobe Aviation, the parent company of IndiGo, continues to soar despite the challenges faced by the aviation industry. With a strong balance sheet and growth potential, InterGlobe Aviation is an attractive stock to watch this Diwali. As air travel rebounds, this stock could take off in your portfolio.
Q1FY2024 Highlights: InterGlobe Aviation Ltd, the parent company of IndiGo, reported a strong financial performance in Q1 FY24, with revenue and profits growing significantly YoY. The company’s revenue grew by 29.8% to Rs. 16,683 crores, driven by robust demand for air travel and a decline in jet fuel prices. Total expenses remained flat at Rs. 14,073 crores. As a result, EBITDA increased by 626.8% to Rs. 5,210 crores, with an EBITDA margin of 31.2%. PAT jumped by 236% to Rs. 3,091 crores, with a PAT margin of 18.6%.
The Indian Hotels Company, which owns the iconic Taj Group of hotels, has a rich legacy of hospitality. With travel picking up, Indian Hotels is poised for a comeback. Investing in this stock can be a luxurious addition to your portfolio this Diwali.
Q2FY2024 Highlights: Indian Hotels Company Limited reported a strong financial performance for the second quarter of fiscal year 2023-24, with revenue, EBITDA, and PAT all growing significantly YoY. Revenue grew by 18% to Rs 1,481 crore, driven by strong demand for hospitality services and a recovery in both domestic and international travel. EBITDA grew by 26% to Rs 402 crore, with an EBITDA margin of 27.2%, up 1.3 percentage points YoY. The improvement in EBITDA margin was driven by higher occupancy rates and revenue per available room (RevPAR). PAT grew by 37% to Rs 167 crore.
This Diwali, consider illuminating your investment portfolio with these top 6 stocks. Titan, Kalyan Jewellers, Vedant Fashions, Bikaji Foods, InterGlobe Aviation Company, and Indian Hotels offer diverse opportunities for investors. As you celebrate the festival of lights, make wise investment choices to brighten your financial future.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.
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