close
Business
close
Stock Market

10 Stocks to Benefit from Ayodhya's Transformation

Created on 11 Jan 2024

Wraps up in 6 Min

Read by 2.2k people

Updated on 02 Feb 2024

Shri Ram Janmabhoomi Temple in Ayodhya, India, opened its gates to devotees on 22 January 2024. This event is going to make history for the nation, not only from the perspective of faith but from economic grounds as well.

In only 11 days of its inauguration, Ram Temple attracted over 250K devotees, generating around ₹11 crore in offerings.

Wondering how the Ram Temple could contribute towards the nation’s economy? Well, let me tell you a big secret. Along with a spiritual boost, this auspicious occasion is bound to impact several industries and your finances, too! 💰

I am talking about the stocks likely to portray bullish behaviour with the inauguration of Ayodhya’s Ram Temple. Dividing into multiple sectors, we will discuss the top Ayodhya Stocks (as they are now popularly known) in India.

Without any delay, let’s begin the listicle. 📑

Travel: Roads, Rails & Skies Affecting Stocks

Over 60,000 people are expected to grace Ayodhya with their presence to celebrate the event. As a result, India’s travel sector is booming. As per a report, around 45 lakh tourists are likely to visit Ayodhya yearly. This number is 80% more than the usual horde of tourists in Ram’s birth city.

People from all over the nation wish to celebrate the big occasion just like Diwali (something India’s Prime Minister expressed) in Ayodhya city itself. With Ayodhya becoming a focal point for tourists, the online booking of flights, cabs, buses, and trains is bound to see wondrous hikes.

This has been boosting multiple travel sector stocks, discussed below. To understand it better, let’s divide the travel sector into three major categories:

1. Railway Sector 🛤️  

Indian railways announced their plans to run over 1,000 trains nationwide with Ayodhya as the final destination. This would facilitate easy access to anyone wishing to visit the city afterwards from both major and a few minor cities.

One stock, in particular, saw a glamorous hike in its price and is still trailing up as you read this article. Guess which stock it is? 🤔

It’s Indian Railway Catering and Tourism Corporation Ltd. or IRCTC!

price chart of IRCTC
Source: Ticker by Finology

The price chart above shows a rise in share price with an absolute return of 3.7% in a week, and it’s just for the first week of January. IRCTC is responsible for providing catering services on Indian Railways’ trains, as well as online railway ticketing and tourism packages.

Refer to the Company Essentials image from Ticker by Finology to grab further details about IRCTC.

company essentials of IRCTC

Apart from IRCTC, a few more stocks, like Rail Vikas Nigam Ltd. and Transport Corporation of India, have seen a rise in their absolute return to 2.5% and 0.8%, respectively. Railway stocks are surely strapping up to gain the best from the occasion and are not the only ones.

2. Airline Stocks ✈️

The airline sector is excitedly brimming with the newly established Shri Ram International Airport in Ayodhya. Operations began on 10 January 2024, where one airline company is leading the race and betting the most.

InterGlobe Aviation Ltd.’s IndiGo became the first airline company to start a direct flight to Ayodhya from Tier-I cities like Delhi and Ahmedabad. Making Ayodhya its 86th destination, these flights begin on 15 January 2024 and may likely take InterGlobe Aviation’s share prices further ahead.

price chart of InterGlobe Aviation Ltd.’s IndiGo

The 1-week return of 3.0% is a good indication of InterGlobe Aviation’s ongoing bullish strike. Interested in learning the financial details about IndiGo? Here’s a quick yet detailed brief for you.

company essentials of InterGlobe Aviation Ltd.’s IndiGo

However, InterGlobe Aviation is not the only one benefitting from the ordeal.

SpiceJet Ltd. is another airline company making quite a noise in the stock market. These airline companies revolutionised the aviation industry in India and have helped bring some stability to the currently uncertain market.

In the end, extra flights are a good thing with all the flights being cancelled and the wavering state of the airline sector.

3. Tourism Stocks 🛣️

A one-stop destination for booking hotels, buses, flights, and train tickets, the tourism sector is booming with the grand occasion in Ayodhya.

Considering the surge in demand for everything, the online services portion of the industry is going all out. And the stocks who are standing at the top of this pyramid? EaseMyTrip and Thomas Cook!

company essentials of EasyMyTrip

Easy Trip Planners Ltd.’s EaseMyTrip has showcased an absolute return of 13.2% in the first week of January. It is a leading online travel platform in India, offering a wide range of travel services, including flights, hotels, holidays, car rentals, and more.

price chart of EaseMyTrip

On the other hand, Thomas Cook (India) Ltd. is trailing right behind with a weekly return of 9.3%. I bet you must be considering hopping on the trendy train and planning a trip, right?

Remember to sign up for travel insurance. After all, safety comes first!

Hospitality Sector: Hotels & Resorts in Abundance

Rates as high as ₹15,000 to ₹18,000 per night showcase the high demand for hotel rooms in Ayodhya. In fact, hotel rooms and resorts in Ayodhya are almost fully booked for January.

The hospitality sector also reflects the rise in the city's real estate investment. This headline from Business Today on 8 January 2024 says everything in the matter. 👇

“Ram temple inauguration: Ayodhya surpasses Goa, Himachal for investment, real estate queries; property rates soar”

Let’s check out the stocks soaring as high as the hotel prices in Ayodhya right now. 📈

a. Praveg Ltd.

This small-cap stock has reportedly sold out 75% of its occupancy in the newly established tent city. It would be near the Ram Temple in Ayodhya.

With a return of 45.2% in the first week of January 2024, Praveg Ltd. has seen a rise in its financials since the second quarter of 2023. It is a diversified infrastructure company with interests in construction, engineering, and real estate development. They also have a presence in the renewable energy sector.

price chart of Praveg Ltd.

The reason for this change is winning a ten-year contract for the tent city in Ayodhya. The next on the list is…

b. IHCL

With returns of 4.6% for January’s first week, Indian Hotels Company Ltd. is set to open Vivanta and Ginger branded hotels, branding the city’s first branded hospitality experience.

IHCL is a leading hospitality company in India, operating under the iconic Taj Hotels and Vivanta brands. They have a portfolio of over 250 hotels across India and abroad.

Another noteworthy stock in the hospitality sector is the multi-bagger stock; ITC Hotels Ltd. Counted as one of the top 10 most profitable companies in India, ITC Hotels is all set to squeeze immense benefits and give returns to investors.

The Bottom Line

Ram Temple’s inauguration will be celebrated like Diwali in Ayodhya, so investing in the same manner would be advisable. Take advantage of the occasion, but make sure to do your due diligence.

Research about the company’s future prospects and other financial aspects with the ongoing trend. Remember, earning profits is not our only goal; avoiding losses is also crucial.

Here are a few articles to help you invest accurately:

*Disclaimer: The stocks and companies discussed above aren't a recommendation from Insider by Finology and shall not be construed as a replacement for professional advice. Consult a professional or conduct the necessary research before making investment decisions.

comment on this article
share this article
Photo of Preeti Gupta

An Article By -

Preeti Gupta

97 Posts

1.6m Views

421 Post Likes

A book-lover who adores everything fictional, Preeti has undertaken the life mission of tasting every flavour available in the pantry. A science student with a Master's in Mass Communication, she now wishes to conquer the Finance world as a writer. With the power invested by the randomly chosen music, she is here to make Finance fun for you.

Share your thoughts

We showed you ours, now you show us yours (opinions 😉)

no comments on this article yet

Why not start a conversation?

Looks like nobody has said anything yet. Would you take this as an opportunity to start a discussion or a chat fight may be.

Under Stock Market

"A few" articles ain't enough! Explore more under this category.

close
Share this post
share on facebook

Facebook

share on twitter

Twitter

share on whatsapp

Whatsapp

share on linkedin

Linkedin

Or copy the link to this post -

https://insider.finology.in/stock-market/ayodhya-stocks

copy url to this post
Copied