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Stock Market Sectors and Stocks to Get Benefit from Ayodhya Temple:

Key Highlights

• Hospitality Boom: Millions of pilgrims are expected, making hotels like IHCL, Oberoi, and Praveg prime picks.

• Travel & Tourism Takes Flight: Airlines like IndiGo and SpiceJet stand to gain from increased air travel, while IRCTC caters to pilgrims via special trains and packages. Further, EaseMyTrip thrives on convenient booking solutions for travel and accommodation.

• Infrastructure Gears Up: RVNL might see opportunities in railway upgrades and new lines.

• Construction Giants Look Ahead: L&T could benefit from long-term infrastructure development and increased demand for construction services.

Check Each Stock Analysis Below.

Top Ayodhya Stocks: Hospitality, Travel, and Beyond

1. Hospitality Sector

With millions of devotees expected to visit Ayodhya in the coming years, the demand for hotels and other accommodation options is bound to skyrocket. Best Hospitality Stocks:

1. The Indian Hotels Company Ltd

One of the leading hotel chains in India, with a strong presence in pilgrimage destinations such as Tirupati and Varanasi.

Source: Taj Group to open three hotels in Ayodhya, 2 to be ready by 2027

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2. EIH Limited (Oberoi)

Another well-known luxury hotel chain in India, known for its excellent service and opulent properties. Oberoi Hotels & Resorts operates luxury properties in key pilgrimage destinations like Tirupati and Haridwar. Establishing a presence in Ayodhya, a rapidly developing religious and cultural center, would further strengthen its portfolio and tap into a new market segment.

3. Praveg Ltd

A local player with a resort near the Ram Mandir in Ayodhya. Praveg’s luxurious resort near the Brahma Kund, with its 30 tents and restaurant, is well-positioned to capture a significant share of this demand. Compared to traditional hotels, Praveg’s tent-based infrastructure requires lower capital investment, allowing them to set up quickly and break even at lower occupancy rates. This can be crucial in catering to the initial surge in demand and minimizing financial risks. 

Other Hotel Stock to Keep an Eye on is ITC Ltd: A diversified conglomerate interested in hotels, food processing, and paper products. Its ITC Welcome Hotels brand operates luxury hotels in major Indian cities.

2. Travel & Tourism Tourism Sector

The opening of the Ram Mandir is likely to put Ayodhya on the map as a major tourist destination. This will not only benefit the hospitality sector but also travel and tour companies, airlines, and railways. 

Airline

4. Interglobe Aviation Ltd (IndiGo)

Ayodhya is expected to witness a significant surge in tourism following the grand opening of the Ram Mandir. This will lead to a higher demand for air travel to the city, which IndiGo has already launched direct flights from Delhi and Ahmedabad to Ayodhya, anticipating the increased traffic. The increased pilgrim traffic to Ayodhya can open doors for IndiGo to develop partnerships with hotels, tour operators, and travel agencies in the city.

Source: ‘Pushpak vimaan’: Passengers on IndiGo inaugural flight Ayodhya

5. SpiceJet

Just like IndiGo, SpiceJet stands to gain from the anticipated surge in travel to Ayodhya. They recently commenced operations at the new Ayodhya airport, connecting major cities like Delhi and Mumbai, putting them in a prime position to capture this increased demand.

Indian Railways 

6. IRCTC

The Indian Railways are adding more trains to Ayodhya, while IRCTC offers special pilgrimage packages. IRCTC plans to run over 1000 special trains connecting Ayodhya with various parts of the country in the first 100 days after the opening. This initiative will cater to the influx of pilgrims and generate significant revenue for IRCTC. With the expected rise in passenger traffic, particularly at Ayodhya station, IRCTC can expand its catering services and introduce new menus or packages tailored to pilgrims. This will increase its catering revenue and provide a better experience for travelers.

Source: Ram Mandir: Railways to run 1,000+ trains to Ayodhya from across the country. 

7. RVNL

While the Ayodhya Ram Mandir opening is anticipated to bring a surge in tourism and economic activity, the direct benefits for RVNL (Rail Vikas Nigam Limited) might be less prominent than companies like IRCTC or airlines. However, there are still some potential ways RVNL could benefit:

Increased Railway Infrastructure Projects: The influx of pilgrims and tourists to Ayodhya could necessitate improving railway infrastructure around the city. This could open doors for RVNL to undertake projects like the Upgradation of Ayodhya Railway Station, Building New Railway Lines, and Developing a Dedicated Pilgrims Train Network.

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8. Ease my trip

EaseMyTrip, a leading online travel agency, can enjoy several potential benefits from the Ayodhya Ram Mandir opening. EaseMyTrip is well-positioned to capture the following :

• Flight Bookings: With direct flights to Ayodhya now operational, EaseMyTrip can provide pilgrims and tourists with convenient booking options for reaching the city.

• Train Bookings: As IRCTC’s partner, EaseMyTrip can leverage its existing platform to offer seamless train ticket booking for pilgrims’ special trains and regular schedules.

• Hotels and Accommodation: EaseMyTrip has a wide network of partner hotels and accommodation options in Ayodhya, catering to diverse budgets and preferences.

• Tour Packages: By creating pre-designed or customizable tour packages encompassing travel, accommodation, local sightseeing, and temple darshan, EaseMyTrip can offer a hassle-free experience for visitors.

3. Infrastructure

The development of Ayodhya as a major pilgrimage center will require significant investment in infrastructure. This will create opportunities for construction, roads, and transportation companies. 

9. Larsen & Toubro (L&T)

A leading engineering and construction company with a strong presence in the infrastructure sector. Larsen & Toubro (L&T), a diversified engineering and construction conglomerate, might not directly benefit from the Ayodhya Ram Mandir opening in a significant way. However, there are some potential indirect and long-term benefits to consider: 

• Improved Infrastructure: The increased tourism and economic activity in Ayodhya could necessitate infrastructural development around the city, such as airport expansion, new railway lines, and improved roads. While L&T might not be directly involved in the Ram Mandir construction, they could participate in these infrastructural projects through government tenders or private contracts.

• Increased Demand for Construction Services: The anticipated economic growth and development in Ayodhya could lead to a higher demand for construction services in the region. This could benefit L&T’s construction business over the long term, potentially including hotels, commercial buildings, and residential projects catering to the influx of tourists and pilgrims.

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