Top Stocks to Benefit from Upcoming Ram Mandir Inauguration

After a wait of many years, on Monday, 22 January, a big event will take place in India, specifically in the city of Ayodhya: The inauguration of the Ram Mandir.

Preparations are on in full swing for the ceremony, the 'Pran Pratishtha'. The state and central governments have left no stone unturned to make this a truly historic event.

The hype around this event has been building up for a while. Politicians, religious leaders, celebrities, are among more than 6,000 who have been invited to attend.

This event is widely seen as not just a religious ceremony but also the start of the political season leading up to the general elections a few months away.

However, it's not just about religion and politics. There's a financial angle to it as well.

You see, after the ceremony, the city of Ayodhya will likely witness an unprecedented number of visitors. According to reports, government authorities are expecting the daily footfalls in the city to go up to 300,000.

These people would be there to visit the temple but they might stay for a few days as tourists. They may also make the city a stop on their larger itinerary.

This provides opportunities for businesses to cash in. But which ones are likely to benefit. And investors in the Indian stock market would like to know if any are listed.

Well, there are a few of them. Let's take a look...

Top 5 Stocks Related to Ram Mandir

#1 IRCTC

The most obvious beneficiary of this mega event would be IRCTC. This is because people from around the country would have to first travel to Ayodhya.

Most of them won't get there by air as the city's airport has just commenced flight operations. The railway would be the choice for most.

Whenever there is a jump in passenger bookings on the Indian railways for any event, IRCTC is the first beneficiary. This is because of its monopoly in the segment of rail ticketing.

However, it must be pointed out that IRCTC is a big company and this one event may not more the needle too much as far as revenue growth is concerned.

For more, check out our detailed video on IRCTC where we talk about its near term growth triggers:

#2 Travel Planning Stocks

Companies providing travel support services like Easy Trip Planners, Cox & Kings, Thomas Cook, and Crown Tours, among others also stand to gain.

Very few people will actually drive to Ayodhya in their own vehicles. Most will use the services of these travel firms to arrange their travel.

This is a good one-off opportunity for these firms to cash in.

However, to make trips to Ayodhya a recurring revenue stream, these firms will have to put in a concerted effort to develop religious tourism as a profitable vertical.

#3 Local Hotels in the City

This goes without saying. The thousands of people who will flock to the city daily will stay at local places near the temple providing suitable accommodation.

While there aren't any direct listed beneficiaries, the hotel stocks on the market could still profit indirectly, if travellers visit Ayodhya as part of a larger itinerary. In this way, their hotels and resorts in other cities like Agra or Varanasi could see a spike in occupancy.

However, many hotel chains in India like IHCL, Samhi Hotels, EIH, Mahindra Holidays, and Lemon Tree, and others, are doing booming business anyway with high occupancy in excess of 70%. Thus, any benefit from this event will be the cherry on the cake.

Having said this, there is one hotel stock that will be a direct beneficiary...

#4 Apollo Sindoori Hotels

Apollo Sindoori Hotels is listed on the NSE only. It's engaged in the business of managing food outlets at hospitals and reputed organisations. The company also undertakes outdoor catering services, skilled manpower to hospitals, among other things.

The reason why the stock is buzzing is because the company has a multi-level parking facility in Ayodhya spanning 3,000 square meters. It also includes a rooftop area for restaurants which can host multiple devotees simultaneously.

The development of this multi-level parking facility in Ayodhya called as Tedhi Bazar was notified sometime last year when the Ram Mandir topic was yet to be discovered by the investing world.

So, you can see how the company stands to benefit and how it can see a one-time spike in revenue in the remaining two quarters of FY24. The company is currently also exploring options to build a hospital in Rajkot, along with other business projects.

For more details about this stock you can read our editorial on Apollo Sindoori Hotels.

#5 Praveg

Praveg runs luxury tents in tourist destinations across India.

In November 2023, the company inaugurated a luxurious resort along the Brahma Kund in Ayodhya, featuring an ultra-luxury tent city with a capacity of 30 tents and a dedicated restaurant.

Apart from that, Praveg also gained attention last month for winning a contract to establish tents in Lakshadweep.

On 20 December 2023, Praveg recently bagged an order for the development, operation, maintenance, and management of at least 50 tents at Agatti Island, Lakshadweep.

The order involves building tents with cloak room, changing room, along with commercial activities like scuba diving, destination wedding, corporate functions, and many more facilities on the island.

Both these developments have changed the entire fortune of the smallcap company as the stock has now rallied over 50,000% in the past five years.

With these orders, the company's revenues are expected to grow substantially in the coming quarters. Praveg currently has a substantial portfolio of 580 operational rooms spread across multiple states.

Happy investing!

Disclaimer: This article is for information purposes only. It is not a stock recommendation and should not be treated as such. Learn more about our recommendation services here...