Ayodhya Ram Mandir: These Stocks Stand To Gain After Inauguration
The influx of pilgrims is poised to create lucrative opportunities for various companies and as such these stocks stand to gain after the opening of the Ram Mandir.
The highly anticipated consecration ceremony of the Ram Mandir in Ayodhya on Jan. 22 and Prime Minister Narendra Modi's announcement of substantial investments to make Ayodhya a smart city have triggered a surge in multiple stock prices.
The event is set to host more than 7,000 guests from India and abroad, and officials in the Ayodhya Development Authority are expecting 3-5 lakh visitors every day for at least a month post-inauguration. This influx of pilgrims is poised to create lucrative opportunities for various companies.
These stocks stand to gain after the opening of the Ram Mandir
Hospitality
The hospitality sector in and around Ayodhya is expected to boom on potential growth in tourism after the opening of the temple and future investments.
Praveg Ltd.'s stock has risen over 65% in the past month. The company has built a resort at Ayodhya, which will start operations on Jan. 15. Around 75% of the resort's occupancy has already been pre-booked.
Luxury hotel chains like Indian Hotels Co., ITC Ltd., and EIH Ltd. also stand to gain from their planned hotel openings in the area. ITC is opening a seven-star property, 12 km from the temple. Meanwhile, IHCL is building Vivanta and Ginger-branded hotels, bringing the first branded hospitality experience to the city.
Shares of ITC have risen 3.86% in the past month, while those of IHCL have gained 12.9% during the period.
Hotel room rates ranged from Rs 17,000 to Rs 73,000 per night on Dec. 19, 2023.
The Ayodhya Tent City, which has 30 luxurious air-conditioned tents, is fully booked for Jan. 22, with each tent sold at Rs 30,000 a night.
There are 73 new hotels in the pipeline, of which 40 are already under construction, according to the administration.
Airline
The newly completed Ayodhya International Airport was inaugurated by Prime Minister Narendra Modi on Dec. 30. Flight operations from the airport begin on Jan. 10, much before the opening of the Ram temple.
InterGlobe Aviation Ltd.'s IndiGo is slated to start commercial operations to Ayodhya from Delhi and Ahmedabad.
Ticket prices to cities that will be connected to the Ayodhya airport have surged on the back of increased demand.
Shares of InterGlobe Aviation and SpiceJet Ltd. have also seen a rise of 6.48% and 7.47% in the last month.
Railway
Indian Railway Catering and Tourism Corp. plans to run over 1,000 trains to Ayodhya for the temple inauguration, facilitating easy access from major cities. The stock has jumped 26% in the last month.
Shares of Rail Vikas Nigam Ltd. have also gained 86.14% in the past month.
Tourism
Tour operators and travel agencies like Thomas Cook (India) Ltd., EaseMyTrip, and RateGain Travel Technologies Ltd. have also witnessed a surge in queries and bookings since the inauguration announcement.
EaseMyTrip is poised to benefit from increasing bookings for air tickets, hotels, cabs, buses, and railway tickets with the upcoming inauguration. The company's shares have surged 20.86% in the past month.
Hospitality solutions provider RateGain said that following the announcement of the inauguration date in the second week of September, rapid bookings ensued, and there has been a 121% year-on-year rise in international bookings in Lucknow—which is an almost three-hour drive away from Ayodhya—for the weekend preceding the inauguration. September recorded a 270% month-on-month increase in international bookings compared to August.
Apollo Sindoori Hotels has a multi-level parking facility in Ayodhya of 3,000 square meters. The facility has a rooftop area for restaurants, capable of hosting over 1,000 tourists. Shares of the company have risen 48% in the past month.
