Festive season bets: Analysts see upside in Lenskart, Arvind, Varun Beverages and 3 other stocks
D-Street investors eyeing tactical gains during the festive season may want to keep six stocks on their radar: Lenskart, Arvind, Varun Beverages, OMNI, IT BeES and Sudarshan Chemical Industries, as analysts see potential upside in these counters.
Investors looking to make stock-market bets during the festive season can consider Lenskart, Arvind, Varun Beverages, OMNI, IT BeES and Sudarshan Chemical Industries, as analysts see potential upside in these six stocks based on their fundamental and technical outlook.
The festive season is expected to drive higher mall and high-street footfall and discretionary spending on fashion and sunglasses, benefiting Lenskart's mass-to-premium house-of-brands portfolio. With store payback under 10 months and store EBITDA margin above 33%, Motilal Oswal expects Lenskart to reach around 4,500 India stores by FY29, with a medium-term opportunity of 10,000-plus stores, around 29% India revenue CAGR over FY26-29E and India pre-Ind AS EBITDA margin expanding around 395 basis points to 19.4% by FY29 as commissions and incentives decline with the shift to COCO stores.
Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services
Arvind enters the Diwali-wedding season with strong momentum, with denim volumes up 35% year-on-year to a 16-quarter high and woven volumes up 7%, while order visibility runs through year-end. New-crop arrivals are expected to improve cotton supply and soften prices, while earlier price hikes should flow through with a 3-4 month lag, supporting EBITDA margin improvement from 9.6% towards 11.4%; garments are expected to grow around 15% CAGR with 250-300 basis points of margin expansion.
Siddhartha Khemka, Head of Research, Wealth Management, Motilal Oswal Financial Services
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IT BeES is showing a positive technical setup, with a regular bullish divergence followed by a bullish hidden divergence on the IT Index, indicating improving underlying momentum and the possibility of a broader technology-sector recovery. Investors may consider accumulating IT BeES in the Rs 29.50-31.50 zone, with a stop-loss at Rs 27 and a target of Rs 37 over 2-3 months, as downside momentum appears to be losing strength; a sustained break below Rs 27 would invalidate the setup.
Jigar S Patel, Senior Manager - Technical Research, Anand Rathi Share and Stock Brokers
IT BeES is showing a positive technical setup, with a regular bullish divergence followed by a bullish hidden divergence on the IT Index, indicating improving underlying momentum and the possibility of a broader technology-sector recovery. Investors may consider accumulating IT BeES in the Rs 29.50-31.50 zone, with a stop-loss at Rs 27 and a target of Rs 37 over 2-3 months, as downside momentum appears to be losing strength; a sustained break below Rs 27 would invalidate the setup.
Jigar S Patel, Senior Manager - Technical Research, Anand Rathi Share and Stock Brokers
Sudarshan Chemical is in a positive trend and sustaining above its short-term averages, with the 50-day EMA at Rs 1,165 expected to provide strong support. The stock is rebounding after forming a base above the recent trendline breakout area, while the daily 14-period RSI has crossed above its 9-period average; Bajaj Broking expects the stock to move towards Rs 1,350, the September 2026 high.
Bajaj Broking Research
Varun Beverages has consolidated between Rs 380 and Rs 550 over the past seven months and is rebounding from the lower band, offering a fresh entry opportunity with a favourable risk-reward setup; the 200-week EMA supports the base formation. Bajaj Broking expects the stock to move towards Rs 476, the 50% retracement of its previous decline from Rs 555 to Rs 396, while the weekly stochastic rebound from oversold territory supports the positive bias.
Bajaj Broking Research
Disclosure: This article has been written by Kumar Gaurav, who is not a Sebi-registered Research Analyst or an Investment Adviser. Gaurav and their ‘relative(s)’ (as defined under Section 2(77) of the Companies Act, 2013) do not hold any financial interest in the companies mentioned in this article as of the date of publication. The views/recommendations mentioned in this article, wherever applicable, are those of the respective Sebi-registered Research Analyst/brokerage and have been reproduced/reported with due attribution. They should not be construed as the views or recommendations of The Economic Times Digital or the journalist. Readers are advised to consider the original research report and make their investment decisions based on their own assessment. Brokerage disclaimers here
