As the festive season approaches, investors are not only preparing for holiday festivities but also eyeing potential investment opportunities in Christmas stocks. The Christmas season often brings about increased consumer spending and a unique phenomenon known as the Santa Claus rally in the stock markets.

The Santa Claus rally refers to a surge in the stock market’s value during the last week of December and the first two trading days of the new year. While the exact reasons behind this rally are debated, it is often associated with increased buying activity as investors seek to capitalise on year-end tax benefits and a general sense of optimism accompanying the holiday season.

In India, where stock markets are correlated with the US, a Santa Claus Rally is not uncommon. Over the past decade, the country has consistently witnessed a positive upswing in the last two weeks of the year.

Motilal Oswal has identified three top stocks that are poised to benefit from Christmas 2023, offering insights into why these stocks might be attractive investments during the holiday season.

Shoppers Stop Ltd

Shoppers Stop, India’s leading retailer of fashion and beauty brands, operates 271 stores across 50 cities with a portfolio of over 800 brands. The company has 9.5 million first-citizen members and partnerships with over 800 brands. With a significant capital expenditure of Rs 90 crore for expansions in 2023, Shoppers Stop has demonstrated a robust profit growth of 26.3 per cent CAGR over the last five years.

While the 52-week high of Shoppers Stop currently stands at Rs 888.50, the stock has delivered a one-year return of 2.94 per cent, and the market capitalisation of the company is Rs 7,572.27 crore, according to BSE.

On Friday, Shoppers Stop shares closed 4.31 per cent higher at Rs 688.70 apiece on the NSE.

Easy Trip Planners Ltd

Operating under the flagship brand “Ease My Trip,” the company provides comprehensive travel solutions, including airline tickets, hotels, holiday packages, rail, and bus tickets. Easy Trip Planners has expanded internationally into the Philippines, Thailand, and the USA in FY22 and has strategic partnerships and acquisitions to diversify its presence. With a return on equity of 48.7 per cent over the last three years, it stands as India’s second-largest and uniquely profitable online travel portal.

The 52-week high of Easy Trip Planners stands at Rs 38.55, and the company holds a market capitalisation of Rs  6,701.22 crore. In the last one year, the stock has fallen 15.37 per cent.

On Friday, Easy Trip Planners shares closed 0.78 per cent higher at Rs 38.55 apiece on the NSE.

Titan Company Ltd

Titan Company, a renowned Indian lifestyle conglomerate, has established itself as a leader in the watches, jewellery, and eyewear sectors. With a solid presence in the jewellery division, contributing to 89 per cent of its revenues, Titan owns well-known brands like Tanishq, Zoya, Mia, and Caratlane. The company has delivered strong profit growth of 23.9 per cent CAGR over the last five years and maintains a healthy dividend payout of 31.6 per cent.

Titan Company has delivered a handsome return of 45.79 per cent in the last one year, and its 52-week high stands at  Rs 3,667.20. The company boasts a market capitalisation of Rs 3,21,755.90 crore.

On Friday, Titan Company shares closed 1.12 per cent higher at Rs 3,620 apiece on the NSE.

(Disclaimer: The views and recommendations made above are of individual analysts, experts, and broking companies, not of Republic. Investors are advised to check with certified experts before making any investment decision.)