Synopsis:
India’s festive season is around the corner, in which major companies like Hero MotoCorp, Havells, Kalyan Jewellers, Bajaj Finance, etc, are expected to post superior sales during this season.
In this article, we will dive into some of the sectors and their leading companies that may be the biggest beneficiaries of the upcoming festive season. So, let’s dive into it.
Consumer Durables:
Crompton Greaves, Whirlpool and Havells are gearing up to take advantage of the festive season as families look to upgrade their appliances and electronics. With the GST being simplified from four slabs to two, consumers will have a bit more cash in their pockets, which is likely to encourage them to spend more on non-essential items.
As demand for TVs, fans, kitchen gadgets, and smart devices surges during Diwali sales, these companies could see a significant boost in their revenues. Additionally, sales through e-commerce giants like Amazon & Flipkart also contribute massively to its topline.
Also Read: TCS, Infosys & 3 other stocks taking support below 50-Day EMA to keep on your radar
Jewellery:
Titan (Tanishq, Mia, etc) and Kalyan Jewellers are expected to thrive during the festive season, as gold and jewellery purchases typically spike during auspicious occasions like Dhanteras and Diwali. Thanks to the GST cut, consumers will save more, which should encourage them to spend on high-value items, ultimately boosting jewellery sales and profit margins.
Automobiles:
Maruti Suzuki, Mahindra & Mahindra and Hero Motocorp are likely to be the major winners as festive demand drives up sales of cars and two-wheelers, supported by attractive financing options and a recovery in rural demand. With a streamlined GST structure reducing overall costs, buyers will have more purchasing power, which should further accelerate vehicle sales during the festive months.
Banks & NBFCs:
HDFC Bank and Bajaj Finance are poised to benefit as festive shopping and auto purchases drive up credit card spending, personal loans, and financing for consumer durables. The reduction in GST will further enhance disposable incomes, leading to increased deposits in banks and stronger loan growth. This will also improve repayment cycles and asset quality.
India’s festive e-commerce GMV (Gross Merchandise Value) touched nearly Rs 1 lakh crore in 2024, registering a 23 percent YoY growth and is expected to deliver a similar growth in this festive season as well, coupled with GST rate cuts.
Additionally, India’s current per capita income, which currently stands at $2,650, is expected to rise further, which will make consumers have more money in their hands, giving them the freedom to purchase more products and turn into top luxury goods.
Written by Satyajeet Mukherjee
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