Jewellery, hotel stocks show good buy opportunities

With the Ambani pre-wedding celebrations, wedding expenditure in India has seen a significant increase. According to a recent estimate by Jefferies, nearly ₹10 trillion ($130 billion) is spent each year on 'big fat Indian weddings', only lower than China ($170 billion).

The current average expenditure for pre-wedding festivities is around ₹12 lakhs, which is 5 times India's GDP per capita of $2900.  India's wedding spend to GDP ratio is higher as compared to several other countries.

Another observation made was that an average Indian couple's spending was 2 times on weddings over education. On the other hand, countries like the US spend is less than half as compared to education.

Additionally, it was also seen that jewellery accounts for the largest proportion of spending in Indian weddings, followed by catering. 

A total of 50-55% of the total jewellery is demanded for weddings and this provides an opportunity for large organised players and even stock-market listed entities to gain market share.

Some of the key listed stocks in Jewellery include Titan, Kalyan Jewellers and Senco Gold.

However, there are no pure-listed catering companies apart from select branded retail chains, Jefferies said.