Ayodhya has emerged as a key investment theme on Dalal Street ahead of the consecration of the Ram Mandir on January 22, with investors anticipating a surge in investment in segments like travel, hospitality and logistics.
Situated in eastern Uttar Pradesh, Ayodhya has joined the list of growing temple towns of India that are seeing a tourism boom in the post-Covid phase.
While the India tourism market is estimated to record a compound annual growth rate (CAGR) of 7-8 percent, spiritual tourism will grow 9-10 percent over the next five to seven years, Atul Thakkar, director, investment banking, Anand Rathi Advisors, said.
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With the opening of the Ram Mandir, industry experts say Ayodhya will see a multi-fold rise in tourists, leading to a massive investment opportunity.
Here are some stocks which are seeing increased traction ahead of the January 22 event:
“A pioneer in experiential tourism” in India, Praveg has jumped more than 70 percent over the month, with gains propelled by the Vibrant Gujarat campaign, "Chalo Lakshadweep'' and the property in Ayodhya.
Praveg offers exhibition, event management, and hospitality services domestically. “The current resort in Ayodhya is seeing strong bookings ahead of the opening of the Ram Mandir,” said Anirudh Garg, Managing Partner, Invasset.
The newest property in Ayodhya, operational since November 2023, has an average room rate of around Rs 8,000, Nuvama Institutional Equities estimates. Praveg is expected to build another tent city in Ayodhya to meet the expected demand.
This smallcap stock has hit the 20 percent upper circuit limit twice this week with a 100-times jump in daily volumes.
The company is constructing a multi-level parking facility in Ayodhya, spanning more than 3,000 square meters and featuring a 1,000-seater rooftop restaurant.
The stock has gained over 70 percent in a week and is trading at Rs 2,597.90.
The PSU, which has the monopoly in online train ticket booking, has jumped over 20 percent over the past month.
Analysts expect IRCTC to gain from a surge in tourist footfalls to Ayodhya this year and beyond.
More than 2 lakh tourists visited Ayodhya in 2017, which swelled to over 2 crore last year, Uttar Pradesh government data shows.
Also read: Ayodhya magic lifts this small-cap stock 70% in a month
The stock is up 7 percent this week. The digital mapping company said on January 9 its New India map platform was selected to chart the official map for Ayodhya city by the Ayodhya Development Authority.
The mapping platform not only offers optimal routes and precise locations but also incorporates special features tailored for electric vehicles, reflecting Ayodhya's dedication to eco-friendly initiatives, the company said in an exchange filing.
IndiGo
The budget carrier has announced a slew of daily flights to Ayodhya. Daily flights between Mumbai and the temple town will begin from January 15.
India’s biggest airline started operating direct flights from Delhi to Ayodhya from January 6, and from Ahmedabad to Ayodhya on January 11.
Shares of its parent, InterGlobe Aviation, have gained 2.3 percent this month, so far.
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