Ram Temple inauguration: Here are 12 shares that may benefit from Ayodhya tourism boom

The grand opening of the Ram Temple in Ayodhya is scheduled for January 22, 2024. Anticipation is high that the city will see a significant surge in investment, fuelled by expectations that the temple will draw pilgrims from around the world. Reports indicate that over 300,000 devotees could visit Ayodhya daily over the next three to four years. Therefore, investors may want to consider stocks in the hospitality and travel and tourism sectors with a focus on Ayodhya; however, only time will tell whether this surge in investment interest is a temporary trend, or an enduring transformation in the market dynamics. The city has already attracted a phenomenal investment commitment to the tune of Rs 49,000 crore at the 2023 Global Investor Summit in Uttar Pradesh held recently, heralding a new era of economic prosperity for the region. Here is the list of stocks one should keep on the watch list. 

Praveg: Established in 2005, the Ahmadabad-based company is a pioneer and leader in experiential tourism in India and offers exhibition, event management, and hospitality services in India. The company provides luxury tent cities and luxury resorts in multiple places including Ayodhya, Rann of Kutch, Varanasi, Daman & Diu and Sardar Sarova among others. Shares of the company have surged more than 50 per cent on a year-to-date basis till January 18, while the benchmark BSE Sensex declined 1 per cent during the same period.   

Indian Hotels and Taj GVK Hotels: According to Anarock research, Ayodhya will become a hotbed of hospitality activity across all budget bandwidths. The demand for hotel spaces from budget to 5-star categories is going to see a tremendous increase after the temple consecration since Ayodhya is shaping up to be one of the most prominent tourism and religious travel hotspots in the country. Indian Hotels Company (IHCL) - one of the country’s largest hotel chain operators that owns prestigious brands like Taj Hotels and Vivanta - is already coming up with two properties in Ayodhya. According to Suma Venkatesh, Executive Vice President - Real Estate & Development at IHCL, considering the fact that Ayodhya, as the revered birthplace of Lord Ram, attracts a significant pilgrimage footfall year-round, the company has taken the leap early. 

“IHCL has underscored its commitment by signing management contracts for two new properties in Ayodhya - a 100-room Vivanta hotel and a 120-room Ginger hotel, both expected to be operational in 36 months. Strategically located near the upcoming Ayodhya International Airport, this five-acre complex will cater to both business and leisure travellers,” she told Business Today. Taj GVK, a segment of the Tata Group, is also remained in focus as its co-parent company, Indian Hotels, has announced a significant project in Ayodhya. 

InterGlobe Aviation and SpiceJet: Shares of InterGlobe Aviation (Indigo) have rallied 3 per cent YTD and over 46 per cent in the past one year to Rs 3,052.65 on January 18. The airline recently operated the inaugural flight from the national capital to Ayodhya airport, officially named as Maharishi Valmiki International Airport, Ayodhya Dham, on December 30. SpiceJet is another listed from the aviation sector which may benefit from the inauguration of the Ram Temple in Ayodhya. Of late, Spicejet announced the launch of non‐stop flights connecting Ayodhya with Chennai, Bengaluru, and Mumbai from February 1, 2024. 

IRCTC: During the initial 100 days of the inauguration of Ram Mandir, the Indian railways planned to run over 1,000 trains from different parts of the country to Ayodhya from January 19. The temple will open for general public from January 23. Shares of IRCTC have gained nearly 5 per cent YTD and around 45 per cent in the past one year till January 18. 

EaseMyTrip, Thomas Cook and Yatra Online: Investors should also zero in on online travel portals including such as EaseMyTrip, Thomas Cook and Yatra Online on the domestic stock exchanges. There are hopes that travel portals may see huge demand for rail, hotels, flights booking, etc for Ayodhya trips. 

Apollo Sindoori Hotels: Apollo Sindoori Hotels is engaged in the business of managing food outlets at hospitals and reputed organisations. The company has a multi-level parking facility in Ayodhya spanning 3,000 square meters, including a rooftop area for restaurants, capable of hosting over 1,000 devotees simultaneously. Shares of Apollo Sindoori Hotels have rallied 53 per cent YTD ahead of the inauguration of Ram Mandir. The scrip has gained 84 per cent in the last one year. 

ITC: Kolkata-based diversified conglomerate ITC Ltd., which is also a leading player in the luxury and mid-segment hotels business, is also considering its options in the area. According to Anil Chadha, Divisional Chief Executive, ITC Hotels, it is in discussions with developers in this market to offer branding and management solutions for their assets under development. 

“Ayodhya is a great destination for cultural and spiritual tourism. It is encouraging to see rapid growth in overall infrastructure as a catalyst for the expected tourism surge. Any market with such large scale expected movement of travellers, would need quality accommodation across segments (luxury to economy). We have significant experience, pan India in the spiritual tourism space. Welcomhotel Bhubaneswar, Welcomhotel Amritsar, Fortune Park Haridwar, Fortune Madurai and Fortune Select Tirupati are some of our properties serving this segment of travellers,” he said. Shares of ITC have gained nearly 1 per cent YTD and 39 per cent in the past one year. 

EIH: The company in its Annual General Meeting on August 2023 said that they are actively looking at Ayodhya and Varanasi. “There are many such destinations in India. The spiritual tourism is on the rise. We are looking at potentially the sites in these locations and potential tie-ups,” EIH said. Shares of EIH have gained 15 per cent so far in 2024 and 68 per cent in the last one year. 

Disclaimer: Stocks mentioned in the article are for information purpose only. Consult your financial advisor before taking any positions.