# 10 Festive Season Stock Picks for Discretionary Spending Surge

Kotak Securities highlights top stocks poised to benefit from India's festive demand boom.

- **Source:** [Economic Times](https://brifing.si/source/37791137-c35a-4ffe-b6a9-fe103afc9e48)
- **Published:** 2026-09-05
- **Topic:** [Finance](https://brifing.si/c/finance)
- **Original article:** <https://economictimes.indiatimes.com/markets/stocks/news/festive-stock-picks-10-stocks-to-buy-ahead-of-the-festive-season-do-you-own-any/slideshow/133788821.cms>
- **On Brifing:** https://brifing.si/s/b3d028b4-eeb9-45e4-9606-075cb67e9e2b

## Festive Season Market Dynamics

India's festive season, spanning Ganesh Chaturthi to Diwali, drives significant economic activity with increased consumer spending across sectors. Kotak Securities anticipates a 15-20% YoY surge in discretionary purchases during this period. The brokerage has identified 10 stocks across automotive, fintech, healthcare and e-commerce that stand to benefit from this seasonal demand spike. Historical data shows festive quarters typically account for 35-40% of annual sales for consumer-facing industries.

## Mahindra & Mahindra's Multi-Segment Strength

Kotak expects Mahindra to maintain industry-leading growth in tractors (12% market share) and commercial vehicles (18% share), with SUV volumes projected to grow 14-17% YoY in FY27. The company's LCV segment continues its momentum with 22% FY26 growth. Improved return ratios (ROE up 300bps to 16%) and strong free cash flow generation (₹45B in FY26) support valuation. Recent launches like XUV700 have captured 25% of the premium SUV segment.

## Royal Enfield's Premium Positioning

Royal Enfield's domestic volumes grew 23% in Q1FY27, with capacity expansion enabling 15% higher production. The planned entry into 250cc segment could expand addressable market by 40%. Brand premiumization (average selling price up 8% YoY) and cost controls should drive 200bps margin expansion. Disposable income growth in tier 2/3 cities (where 60% of sales occur) supports demand for aspirational two-wheelers.

## Zomato's Blinkit-Driven Growth

Eternal (Zomato's parent) is transforming into a diversified platform where Blinkit now contributes 38% of revenues, growing at 75% YoY. Kotak projects 49% revenue CAGR through FY29, with quick commerce GMV reaching $5B. Operating leverage should improve EBITDA margins from 2.2% to 5.3% as delivery density increases. The food delivery business maintains 52% market share despite competition, with 18% order growth.

## Nykaa's Omnichannel Advantage

FSN E-Commerce's beauty segment grew 33% YoY in Q1, with owned brands now contributing 12% of sales. AI-driven personalization has improved conversion rates by 25%. The company's 150+ physical stores drive 35% of premium beauty sales. Fashion segment margins improved to 4.8% (+180bps YoY) as scale benefits kick in. Kotak expects 28% revenue CAGR through FY29 with EBITDA reaching 8.5%.

## Healthcare Sector Standouts

Apollo Hospitals' ARPOB rose 9% YoY to ₹49,500, with digital initiatives contributing 12% of revenues. Dr. Lal PathLabs saw 11% volume growth with 8% higher realization per test. Suburban Diagnostics turnaround and tier 3 expansion (150+ new centers) should drive 16% EBITDA CAGR. The diagnostic sector benefits from increased preventive healthcare spending during festivals.

## Banking Sector Momentum

ICICI Bank maintains industry-leading asset quality with net NPLs at 0.7% and PCR of 82%. Axis Bank's retail loans grew 22% YoY, with mortgages and education loans showing 25% growth. Shriram Finance's AAA rating post-MUFG deal lowered borrowing costs by 75bps. Bajaj Finance delivered 22% AUM growth with credit costs declining to 1.8%. These lenders are well-positioned for festive credit demand.

## Investment Thesis and Risks

Kotak's picks reflect sectors benefiting from India's consumption growth (projected at 7.5% CAGR) and premiumization trends. Key risks include commodity price volatility (impacting 40% of auto costs), potential monsoon variability affecting rural demand, and tighter consumer credit norms. The brokerage recommends staggered accumulation given rich valuations in some names (average 12% premium to historical PE).

## Sources covering this story

- https://economictimes.indiatimes.com/markets/stocks/news/festive-stock-picks-10-stocks-to-buy-ahead-of-the-festive-season-do-you-own-any/slideshow/133788821.cms — 

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_Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._