Tuesday, January 23, 2024
Discover the transformative impact of the Ram Mandir inauguration on Ayodhya economy and key sectors.
On January 22, Ayodhya witnessed the much-anticipated opening of the Ram Temple. Prior to this historic occasion, Prime Minister Narendra Modi’s declaration of significant investments to upgrade Ayodhya into a smart city resulted in a remarkable boost in various stock markets.
The opening event was a splendid spectacle, drawing a crowd of more than 7,000 people, including international guests. Officials from the Ayodhya Development Authority foresee a huge wave of visitors, projecting an estimate of 3 to 5 lakh daily visitors for at least the first month post-inauguration. Investments exceeding $10 billion in new airports, modernized railway stations, townships, and enhanced roadways, are expected to bring an annual visitation of about 5-10 crore, as per a Jefferies report.
This surge of visitors is set to open profitable avenues for numerous industries.
“Ayodhya is undoubtedly on track to become a key destination for spiritual tourism. The immense potential for tourism-related businesses is drawing investors to sectors like hotels, travel, and other related industries. Although the investment prospects are promising in the long term, investors should exercise caution and avoid excessively pursuing these highly-priced stocks. A significant number of stocks in this sector have seen rapid increases, some over 100 percent in a few weeks, driven by retail enthusiasm. While Ayodhya’s tourism prospects are bright for the future, valuation considerations are crucial. Safer investment options at present include large caps in IT, capital goods, telecom, and select private sector banks,” suggests VK Vijayakumar, Chief Investment Strategist at Geojit Financial Services.
Post the Ram Temple opening, these sectors are likely to benefit:
Hotels:
With the temple’s opening, the hotel industry around Ayodhya is set for substantial growth. An increase in tourism is expected to spur a boom in hotel developments, as demand for accommodations soars. Currently, Ayodhya hosts about 17 hotels with nearly 590 rooms. Anticipating the rise in tourist numbers, plans for 73 new hotels are underway, with 40 already in construction, as reported by Jefferies.
Shares of Praveg, which constructed a resort in Ayodhya, have risen nearly 40 percent in January, following a 12.4 percent increase in December. Over the past year, its stock has climbed 205 percent.
Other prestigious hotel chains like Indian Hotels Co., ITC, Mariott, Lemon Tree, Trident, and Oberoi are also planning expansions in the region. ITC is opening a seven-star facility 12 km from the temple, while IHCL is developing Vivanta and Ginger-branded hotels.
IHCL shares have seen an 8 percent rise in January, with EIH and EIH Associates jumping 22 percent and 36 percent, respectively. Lemon Tree Hotels has advanced 18 percent, and Chalet Hotels has increased 9 percent in January 2024. Additionally, Apollo Sindoori Hotels has seen a 46 percent rally.
These hospitality projects are anticipated to significantly increase room availability for the growing number of tourists and pilgrims in Ayodhya.
Airlines:
Ayodhya International Airport, inaugurated by Prime Minister Narendra Modi on December 30, 2023, began flight operations on January 10, 2023, in anticipation of the Ram Temple opening.
The airport’s Phase I, costing around $175 million, can handle 1 million passengers annually. The international terminal is slated to open by 2025, and once Phase II is operational, the airport will have a capacity for 6 million passengers per year.
IndiGo, operated by InterGlobe Aviation Ltd., has started flights to Ayodhya from Delhi and Ahmedabad. Ticket prices to Ayodhya have surged due to increased demand.
SpiceJet’s shares increased 5.33 percent in January after a 35 percent rise in December and a 23 percent gain in November 2023. IndiGo shares, however, dropped about a percent in January due to high valuations after rising consistently from October to December 2023.
Railways:
Ayodhya has seen enhanced railway connectivity during the temple inauguration, with over 1,000 trains operating for easy access from major cities. Plans to introduce more trains to improve connectivity are underway. IRCTC stock rose 7.5 percent in January after a 26 percent increase in December, and Rail Vikas Nigam’s stock soared over 61 percent in January following a 10.5 percent rise in December.
Tour operators and travel agencies such as Thomas Cook (India) Ltd., EaseMyTrip, and RateGain Travel Technologies Ltd. have observed a significant surge in inquiries and reservations in anticipation of the temple’s grand opening.
EaseMyTrip, in particular, is poised to benefit from the heightened demand, expecting a surge in bookings for various travel services including air tickets, hotels, cabs, buses, and railway tickets. The company’s shares have climbed 12.6 percent in January after a 5.3 percent increase in December. Thomas Cook India’s shares have advanced 18 percent in January, and RateGain Travel Technologies has risen 3 percent in January after a 10 percent increase in December.
Tags: Ayodhya, EaseMyTrip, Ram Mandir Ayodhya, Ram Temple
Sunday, April 28, 2024
Sunday, April 28, 2024
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