Best Diwali Stocks to Invest

12 January 2023
6 min read

The holiday season, which begins in August and lasts through December, puts company stocks in the spotlight because their goods and services seemed extremely popular then.

The season of festivals has officially begun, with Navratri being the most recent. In addition, numerous holidays, including Christmas and Diwali, will be celebrated in the upcoming months. Therefore, the demand for consumer goods is generally high during these festivals.

Currently, several people have rekindled the excitement surrounding these festivals. Additionally, the wedding season immediately follows the festival season, which will increase demand even more and lengthen the shopping season.

Since India's festival season is already well underway, we've compiled a list of seasonal stocks for you to review. Then, as the holiday season intensifies, you might consider adding some of these stocks to your portfolio. The top 5 best stocks to buy for Diwali 2022 in India are listed here in detail.

Diwali Stock Recommendations 2022

Here are some top Diwali picks 2022-

S.No.

Best Shares to Buy in Diwali in India in 2022

Category

1.

VIP Industries Ltd.

Luggage Manufacturing

2.

Manyavar-Vedant Fashions Ltd.

Clothing

3.

Whirlpool of India Ltd.

Electronics

4.

Asian Paints Ltd.

Paint

5.

Bajaj Finance Ltd.

Non-Banking Financial Company

Factors to Consider Before Investing in Diwali Picks

Here are some of the factors you must consider before investing in Diwali picks stocks 2022-

  • Data From the Past

The assessment is based on past performance and historical data. The performance in the past may or may not be an accurate representation of the performance in the future. To support his opinion on the upcoming trend, the investor might need access to additional indicators and studies.

  • It's Not Advised to Only Use Seasonal Investing Strategies

Seasonality is a helpful analytical tool for historical data, but it only has a higher success rate when combined with technical and fundamental analysis.

  • Predicting A Trend

Most investors have never been particularly good at timing the stock market. However, timing is everything when using a seasonal investment strategy for maximum gains. Losses could occur from making the wrong entry or exit.

  • Exhaustive Survey

Due to the need for preferential strategic trading, the investor should constantly be alert to stay current with fashion. The investor may use a seasonal investing strategy due to the rising unpredictability and uncertainty in the international markets. However, he should employ risk management tools and other complementary indicators to raise the likelihood of success.

You may also want to read Shopping or Investing: What Should you Choose this Diwali?

Diwali Shares to Buy 2022: Overview

Here is a performance overview of some of the best share for Diwali 2022-

1) VIP Industries Ltd.

People will begin making travel arrangements as the holiday season approaches, which could increase demand for travel and luggage. As a result, VIP Industries Ltd. is the most significant listed participant in this sector.

One of India's largest producers of hard luggage is VIP Industries. Numerous well-known brands owned by the company include VIP Skybags, Aristocrat, Caprese, and Carlton. However, the company's strong brand presence and market dominance are its greatest strengths.

VIP is the fifth-largest luggage manufacturer in the world and a pioneer in the Indian luggage market. In addition, VIP's robust distribution network throughout the business significantly supports the brand.

2) Manyavar-Vedant Fashions Ltd.

Wedding and celebration wear is the next industry to gain from the holiday season. The wedding season in India coincides with the festival season, which will increase demand for kurtas, sherwanis, lehengas, sarees, and kurtis.

Manyavar-Vedant Fashions Ltd. is the most significant listed player in this market. The top brand for celebrations and weddings in India is Vedant Fashions. The company derives 80–90% of its income from the menswear brand Manyavar.

The market position is constrained by the expansion of operations under other brands like Mohey, Tamev, Manthan, and Meebaz, which results in product diversification and generates 10-15% of revenue. This stock can hence be considered one of the best Diwali stocks.

3) Whirlpool of India Ltd.

In addition to being a happy time for Indians, the festive season is also a lucky or holy time for us to make new purchases. During this time, vast and attractive sales often drive the demand for consumer durables and electronic goods. Whirlpool of India Ltd. is leading in this sector.

This company is a top provider of home appliances, and its product line includes a wide range of devices. In addition, Whirlpool has a strong market presence in the washing machine and refrigerator markets. Together, these two business segments account for most of the company's revenue.

4) Asian Paints Ltd.

Now that it's evident that the only possible response whenever we discuss a painting or renovating our homes is, "Let's do it this Diwali," the businesses in this sector will profit from the seasonal uptick in demand.

This sector has Asian Paint Ltd. as one of the tops on the charts. The company generates about 80% of its revenue from decorative paints, with the remaining 20% coming from industrial paints and international operations.

The business also provides services in interior design and home improvement. The company dominates the domestic paints sector with a market share of more than 50%.

5) Bajaj Finance Ltd.

Bajaj Finance Ltd is the financial arm of the Bajaj group and the most prominent leading non-banking financial company in India. The company has a broad reach across the entire nation thanks to its 3586 total presence, 1368 urban branches, 2218 rural branches, and other locations.

One of the company's advantages is its strong market position. Through its operations in more than 60,000 consumer retail stores, BFL holds over 65% of the market share in financial shares.

Conclusion

An investor's choice for his portfolio is influenced by his investment strategy and is based on factors such as expected returns, defined risk tolerance, long-term objectives, and capital.

According to their overall objective—regular income, rapid growth, environmental considerations, low risk, etc., investment strategies are categorized. It is also crucial to adapt your investment strategy to fit various market conditions and diversify your portfolio by purchasing the best season-based Diwali stocks 2022.

You May Also Be Interested to Know-

1.

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2.

Best EV Stocks to buy in India 2022

3.

Best Fixed Deposit to Invest in India

4.

Gold ETF Vs Silver ETF: Where Should You Invest?

5.

Best Gold Stocks to Invest in India 2022

Disclaimer: This blog is solely for educational purposes. The securities/investments quoted here are not recommendatory.

To read the RA disclaimer, please click here
Research Analyst - Bavadharini KS

Disclaimer

The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. NBT do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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