Deven Choksey, MD of DRChoksey Finserv, is calling the current consumption cycle the strongest he has witnessed in recent years. "I haven't seen this kind of season... wherein most of the companies are showing some distinctly high amount of growth," he noted, citing robust July-September results across consumer stocks including paints and retail. The October-December quarter is shaping up to be even stronger, with Choksey predicting it could be among the best festive seasons on record for the sector.
The jewelers are leading the charge. Titan and Kalyan Jewellers are benefiting significantly from exchange gold schemes, a strategy that is keeping consumer engagement high despite the sustained rally in gold prices. "The exchange gold business is definitely working well for some of the trusted jewellers like Titan and Kalyan," Choksey said. "This festive season would probably be among the best." The demand scenario remains "proper," he added, indicating that price elasticity hasn't deterred core buyers.
But he is no fan of the current valuations. "They are expensively traded stocks," Choksey warned. He advises patience, suggesting that a price correction is the right entry point rather than chasing the recent rally. The same logic applies to Trent, which has already recovered from its recent lows. "Every correction becomes a buy opportunity in such kind of companies," he said, emphasizing that the broader consumption story remains intact.
Capital market stocks are also in his radar. BSE and NSE are viewed as attractive long-term holdings due to their business models and dividend-paying ability. Choksey noted that BSE offered a buy signal at lower levels earlier, while NSE is presenting an opportunity at current levels post-listing. He expects the cash equity business to improve further, supporting sentiment for these exchanges in the coming quarters.