There are no two ways about it. festive time is spending time. But as you go shop stomping with your bonus-fattened wallet, you could find your thoughts straying to all the money being made this festive season. Let them. Because you could just as easily join those festivities as well. You just have to buy the stocks that are gaining from all the merriment around you.

It could be a bigger boom than seen in the past, too, given the economic cheer. "Strong economic growth," according to Rajat Rajgarhia, Head (Research), Motilal Oswal Securities, "led by industrial growth, despite a low monsoon, has seen a reasonable increase in disposable incomes, which, in turn, is translating into demand growth for products and services." So expect all the action to show up in corporate performance. Here are some stocks that could do particularly well.

Asian Paints

With over half the decorative paints market under its belt, Asian Paints always sees a festive sales spike. Not only has this company been especially festivity-oriented, it has made people see their home interiors through the lenses of artistic individualism. Plus, it has good services to back it all up. Judging by its first-quarter performance, which saw a 28 per cent rise in net profit (to Rs 33.5 crore) on a double-digit revenue growth in spite of escalating raw material costs, the future looks clear-sky cheerful.

Titan Industries

Titan reported a loss of Rs 5.8 crore in the first quarter of 2004-05, on account of retail restructuring and a voluntary retirement scheme (VRS), but scored a profit of Rs 10.3 crore on sales of Rs 273 crore the following quarter. This festive season could see Titan bounce higher-largely on its success with Tanishq, its jewellery brand, and high gold prices. "The shift in focus to the jewellery business should see better margins," says Ambareesh Baliga, Vice President, Karvy Stock Broking. To tap the opportunity, it is pumping Rs 20 crore into taking Tanishq stores from 168 to 205.

Bajaj Auto

Motorcycles now account for two of every three Bajaj two-wheelers sold, and festive season sales could vroom ahead this year-thanks to dynamic pricing and aggressive semi-urban and rural distribution. The entry-level ct 100, launched earlier this year, is selling briskly (83,000 were sold in September). Net profit may have slipped this last quarter, the result of rising input costs of steel and rubber (even as it saved some on the wage bill), but the stock remains a strong prospect.

ICICI Bank

Festive bounty for a bank? Sure-because of the boom in consumer finance. Loans are being taken left, right and center for new houses, cars, consumer durables and even furniture and jewellery. Festive loan fairs make for discount rate loans and processing fee waivers, and ICICI Bank is spanning out to grab customers. With a 27 per cent rise in net profit to Rs 430.7 crore, the bank's first quarter has been good, partly due to bigger spreads. Cost of deposits is down and high-yielding assets up. "We expect the retail business to grow by 65 per cent, and constitute over 52 per cent of total assets," says Rajgarhia of Motilal Oswal Securities.

Tata Motors

This company now has a commanding role in much of the rubber hitting the tarmac in India, with surging sales of cars and commercial vehicles. In the first quarter of 2004-05, as many as 84,918 vehicles bearing the Tata logo hit the streets. Of those sold in India, 40,781 of them were the passenger kind (up 35 per cent) and 39,877 commercial (up 50 per cent). No wonder the company reported a 109 per cent jump in net profit to Rs 223 crore on revenues that were up 43 per cent at Rs 3,574 crore.

And now it has launched its Indigo Marina estate car, priced nicely within the temptation range of space-happy festive holidayers (it has three petrol and two diesel versions, ranging from Rs 4.2 lakh to Rs 5.2 lakh, much below its Rs 6 lakh-plus rivals). The sales target: 4,000-6,000 units a year. According to a Motilal Oswal research report on the firm, "Tata Motors should deliver strong earnings in FY 05 on the back of continued volume growth in the commercial vehicles segment."

Watchout List
As real estate looks up, do watch out before you put money down.

By Narendra Nathan

Sour dreams: Beware of dubious builders on the prowl

First, the good news: though not yet an all-location boom, real estate in India is looking up. The price escalation in prosperous parts of the country looks quite sustainable, and buyer interest is now firmly on the ascendant. Now, the bad news: this is just when all the carpetbaggers-or rather, cashbaggers-step out to hoodwink who they can, wrap what they can, and slink away into the night.

What should you do? First, make the most of the property mart. Second, watch out for yourself.

Since this is the early part of the upward cycle, existing properties of the desirable sort are mostly all comfortably occupied, and you could find yourself considering an apartment block that's still under construction. Not to suggest that this in itself is a folly. Buying such property could work out well for you, and is often much cheaper than buying a ready-to-move-in flat (especially in a new fully-functional building). Still, be wary. Here's the checklist.

Reputation check
"The first and foremost important thing is the reputation of the builder," says Kekoo Colah, Executive Director of Knight Frank India, a real estate consultancy. The best way out is to verify what happened to the builder's previous projects. If possible, get an opinion from financial institutions and credit rating agencies. Restricting yourself to the big names would be a good idea, since these companies know that a good reputation today spells big money tomorrow.

Title clarity
Second, ensure that the property's ownership title is clear. "Title due diligence is an absolute must," says Chanakya Chakravarti, Joint Managing Director, Cushman & Wakefield India. All building approvals must be in place, and the builder should not violate any regulation (say, related to fire safety or floor space index) that will hold up the completion certificate. "It is better investors take the help of experts at this stage," adds Chakravarti. Get a lawyer to vet documents.

Project commitment
Do you have the builder's word in writing when you are to get delivery? Time overruns are common, and escalation charges too. The builder's commitment is critical. Also, it's good for the builder to have a financial interest in the building (via, say, a maintenance contract) after it's built. Big builders like to use constructions as showcases, and are likely to have an interest in its upkeep. "Just like in any another product," says Chakravarti, "make sure that there is someone to take care during the defect liability period."

Commercial usage check
If it's commercial property you're buying, you need to check for usage restrictions. Different buildings get approvals for different applications. So keep yourself aware of what's allowed and what is not. Also, "Go for modular floor plates," advises Chakravarti, since these can be subdivided for subletting in case of adverse market conditions. On the whole, though, it boils down to the deal-worthiness of the people you're dealing with. And remember, it is only the big players that have big money at stake (by way of future earnings that a sound reputation can bring). These are also the builders most under media scrutiny.