Ayodhya’s Ram Mandir will spur a ten-stock rally, with gains expected for IndiGo, Taj Hotels, and Dominos.

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Ayodhya aspires for the Ram Mandir to become a hub for religious tourism, drawing in excess of 50 million visitors annually from both India and overseas to the temple town.

By the end of this year, SBI Research predicts that tourists will spend over Rs 4 trillion, supported by the Uttar Pradesh government’s initiatives.

According to Vinit Bolinjkar, head of research at Ventura Securities, “this upswing is anticipated to benefit various sectors, including hotels, airlines, hospitality, FMCG, travel ancillaries, and cement.” As a result, businesses and travellers are swarming to the location.

Ten stocks are listed below that are expected to gain from the events in Ayodhya.

IndiGo/SpiceJet (Aviation)

Analysts predict increased air traffic and ticket pricing for airlines as a result of their nonstop flights to Ayodhya. The stock prices of SpiceJet and IndiGo (Interglobe Aviation) have increased by double digits over the last 12 months, and this upward trend is probably going to continue. In the past year, IndiGo’s stock has increased by 38% to Rs 2,909. SpiceJet is now worth Rs 62.5, up 71%.

With a $175 million investment, the newly operational Phase 1 of the (Ayodhya) airport can accommodate one million people. The airport is scheduled to handle six million people by 2025 thanks to subsequent extensions, which include an extra domestic capacity and an international terminal, according to Bolinjkar.

Praveg (Tourism)

As to a report by Nuvama, Praveg Ltd, a tourism firm, is expected to reap numerous advantages from the surge of worshippers visiting the hallowed site. With an average lodging fee of about Rs 8,000, the company opened its newest location in Ayodhya in November 2023. In order to accommodate anticipated demand, the company plans to construct another tent city in Ayodhya. At Rs 1,009, the stock has almost tripled in value over the past year.

L&T (Construction)

Brokerage Arihant Capital advised investors to examine Larsen & Toubro more closely. The proposal to construct the Ram Mandir in Ayodhya was won by the massive engineering and construction company. The share price of L&T has increased by 63 percent to Rs 3,591 in the last year.

IRCTC (Railways)

While there is excitement about railway stocks, IRCTC is also reaping benefits from their affiliation with the Ram Mandir theme. According to Arihant Capital, the train booking website also runs the Ramayana Express, a unique train that transports passengers on pilgrimages to numerous locations connected to Lord Ram. The stock will also rise as a result of more tourists making reservations for Ayodhya. Last year, the IRCTC shares increased by 51% to Rs 969. The inflow is also expected to benefit other railway stocks. Bolinjkar stated that the railway station had been upgraded to accommodate 60,000 passengers daily, double its capacity.

EIH (Hotels)

The Uttar Pradesh government and hotel developer EIH have an agreement to build an opulent tourist hotel near Ayodhya. The company intends to explore partnerships or other development opportunities in Ayodhya, Varanasi, and other holy tourism locations. In a year, EIH shares have increased by 89% to Rs 310.

Indian Hotels / ITC (Hotels)

Currently, Ayodhya has about 17 hotels with about 590 rooms. According to Jefferies, there are currently 73 hotels in the works, 40 of which are in the development stage. In addition to ITC Hotels, Indian Hotels, the company that runs the Taj Hotels, has contracts in place for two Ayodhya properties that will open in 2027. ITC Hotels’ shares have increased 37% to Rs 464 over the last year, compared with a 60% gain in Indian Hotels’ stock to Rs 480.

QSR and FMCG companies

The demand for FMCG products and QSR will increase as more immigrants and visitors move to the city for work-related and religious purposes. According to Jefferies, Ayodhya’s makeover might benefit Jubilant Foodworks, Britannia Industries, Godrej Consumer, ITC, Westlife Foodworld, Hindustan Unilever, Devyani International, and Sapphire Foods.

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