Top 5 Stocks for Ayodhya Ram Mandir Theme Investment

Top 5 Ayodhya theme stocks.

Get ready for a historic day in Ayodhya. On January 22, 2024, the Ram Mandir is set to open its doors, and it's not just about the temple inauguration. It's a massive celebration that will have a significant impact on Ayodhya. This event is drawing people from various parts of the country to be part of the grand celebration. Let's understand why it's such an important occasion and how it is going to shape things in different sectors of Ayodhya.

1. Accommodation Buzz

The demand for places to stay has surged, with hotels fully booked and prices peaking at ₹73,000 per night. Even the luxurious Ayodhya Tent City is fully occupied at ₹30,000 per night, projecting 100% occupancy for weeks post-inauguration.

2. New Hotel Chains Entering

Recognizing the opportunity, major hotel chains are making their mark. Radisson, an international brand, is establishing its presence with rooms priced at ₹30,000 per night. Taj Hotels is constructing two hotels with 100 and 120 rooms each.

3. Homestay Opportunities for Locals

Ayodhya residents have a unique chance to benefit, with officials approving 500 homes for homestays, totalling 2,500 rooms. The city's attraction as a tourist destination is causing property rates to soar.

4. Historical Background

The history of Ram Mandir is steeped in reverence for Lord Ram among Hindus. The original temple was replaced by a mosque during Babur's rule. After years of struggle, the locks were finally opened for prayers during Prime Minister Rajeev Gandhi's tenure.

5. Architectural Marvel

Renowned architect Chandrakant Sompura, along with his sons Nikhil and Ashish, designed the divine temple. The Nagar style will be followed, with an interesting absence of iron to prevent rusting.

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Emerging Investment Opportunities

The upcoming consecration ceremony of the Ram Mandir in Ayodhya on January 22, coupled with Prime Minister Narendra Modi's announcement of significant investments to transform Ayodhya into a smart city, has triggered a notable surge in various stock prices. This event, expected to host over 7,000 guests from India and abroad, is set to attract 3-5 lakh visitors daily for at least a month post-inauguration, presenting lucrative prospects for diverse industries.

- Hospitality Sector:

The hospitality sector in and around Ayodhya is poised for substantial growth in tourism following the temple's opening and future investments. Praveg Ltd. has experienced a remarkable 70.59% surge in its stock in the past month as it prepares to launch a resort in Ayodhya on January 15. About 75% of the resort's occupancy has already been pre-booked. Leading luxury hotel chains like Indian Hotels Co., ITC Ltd., and EIH Ltd. stand to benefit from planned hotel openings in the area.

On December 19, 2023, hotel room rates ranged from Rs 17,000 to Rs 73,000 per night. The Ayodhya Tent City, with 30 luxurious air-conditioned tents, is fully booked for January 22, with each tent priced at Rs 30,000 a night. There are 73 new hotels in the pipeline, with 40 already under construction.

- Airlines and Railways:

 The recently inaugurated Ayodhya International Airport, opened by Prime Minister Narendra Modi on December 30, will commence flight operations on January 10, well before the Ram temple's opening. InterGlobe Aviation Ltd.'s IndiGo is set to start commercial operations to Ayodhya from Delhi and Ahmedabad, leading to a surge in ticket prices. InterGlobe Aviation and SpiceJet Ltd. have witnessed respective rises of 3.17% and 2.05% in the last month.

Indian Railway Catering and Tourism Corp. plans to run over 1,000 trains to Ayodhya for the temple inauguration, ensuring easy access from major cities. The stock has seen a notable increase of 2.83% in the past five days and 20.44% in the last month. Rail Vikas Nigam Ltd. shares have also gained 3.73% in the past month.

- Tourism Sector:

Tour operators and travel agencies such as Thomas Cook (India) Ltd., EaseMyTrip, and RateGain Travel Technologies Ltd. have experienced a surge in queries and bookings since the inauguration announcement. EaseMyTrip's shares have surged 13% in the past five days and 18.6% in the past month.

Hospitality solutions provider RateGain reported a 121% year-on-year rise in international bookings in Lucknow, nearly three hours away from Ayodhya, for the weekend preceding the inauguration, and a remarkable 270% month-on-month increase in international bookings compared to August. Apollo Sindoori Hotels, equipped with a multi-level parking facility in Ayodhya covering 3,000 square metres, has seen its shares rise by 27.08% in the past month.

Top 5 Stocks to Consider

1. HCL (Indian Hotels Company Limited):

IHCL, constructing Vivanta and Ginger-branded hotels in Ayodhya, holds a strong position in the luxury segment with a devoted customer base. The company is well-poised to capitalise on the increasing demand for premium accommodations in the holy city.

2. IRCTC (Indian Railway Catering and Tourism Corporation):

Enjoying a monopoly in online ticketing and catering services, IRCTC is positioned to benefit from the upsurge in rail travel and the demand for pilgrimage packages. The corporation's extensive service offerings make it a key player in facilitating travel to Ayodhya.

3. INDIGO:

As India's largest airline, INDIGO is poised for a substantial increase in air traffic with the influx of devotees heading to Ayodhya. The airline's strategic move to commence flights to and from the Maryada Purushottam Shri Ram International Airport positions it favourably to cater to the surge in travel demand.

4. PRAVEG:

Renowned for its eco-responsible luxury hospitality, Praveg has a strategically located resort in Ayodhya. The anticipation of high returns is reinforced by the fact that 75% of the occupancy has already been pre-sold, showcasing the strong demand for Praveg's offerings in the region.

5. THOMAS COOK India:

Leveraging its expertise in religious tourism, Thomas Cook is well-equipped to offer customised pilgrimage packages to Ayodhya. With its extensive network and diversified portfolio, the company is positioned to meet the unique travel requirements of pilgrims, further contributing to its growth in the religious tourism sector.

Disclaimer

Investing requires careful planning. While opportunities may seem promising, it's essential to do thorough research, consult financial experts, and invest wisely. The blessings of the Ram Mandir opening may be abundant, but success in investing demands diligence.