Tourism Stocks In India – Tourism Stocks

Tourism stocks in India refer to shares of companies involved in the travel, hospitality, and tourism industry. These include airlines, hotels, tour operators, and travel agencies. With India’s growing domestic and international tourism sector, investing in tourism stocks can offer growth potential driven by increasing travel demand and government initiatives.

The table below shows the tourism stocks in India based on the highest market capitalisation and 1-year return.

Introduction to Tourism Stocks List

Thomas Cook (India) Ltd

The Market Cap of Thomas Cook (India) Ltd is Rs. 9,894.91 crores. The stock’s monthly return is -2.82%. Its one-year return is 91.72%. The stock is 24.17% away from its 52-week high.

Thomas Cook (India) Limited is an India-based travel company that provides a wide range of services, such as foreign exchange, corporate travel, leisure travel, visa and passport services, and e-business. 

The company operates through two main segments: Financial Services, which involves buying and selling foreign currencies and related documents, and Travel and related services, which offers tour operations, travel management, visa services, travel insurance, and other related services. The company serves both individual consumers and businesses under various brand names including Thomas Cook, SOTC, TCI, SITA, and others.

Easy Trip Planners Ltd

The Market Cap of Easy Trip Planners Ltd is Rs. 7,189.17 crores. The stock’s monthly return is 6.93%. Its one-year return is 2.71%. The stock is 33.10% away from its 52-week high.

Easy Trip Planners Limited is an India-based online travel platform that specializes in offering reservation and booking services for travel and tourism. The company operates through its portal, app, and call center under the brand name Ease My Trip. 

Its business is divided into segments including Air Passage, Hotel Packages, and Other services. Within the Air Passage segment, customers can book domestic and international flights through various channels such as the Internet, mobile, and call centers. The Hotel Packages segment focuses on providing holiday packages and hotel reservations through call centers and branch offices.  

India Tourism Development Corp Ltd

The Market Cap of India Tourism Development Corp Ltd is Rs. 6,037.31 crores. The stock’s monthly return is -4.70%, while its one-year return stands at 67.22%. Currently, the stock is 32.23% below its 52-week high.

India Tourism Development Corporation Limited manages hotels and restaurants at different locations to cater to tourists’ needs, along with offering transportation services. The company is involved in the creation, distribution, and sale of tourism promotional materials, as well as offering entertainment, engineering consultancy, duty-free shopping options, and hospitality and tourism management services. 

It operates various divisions, including the Hotels Division, Ashok Events Division, Ashok International Trade Division, Ashok Travels and Tours Division, Ashok Institute of Hospitality & Tourism Management, Ashok Consultancy & Engineering Services Division, and Sound & Light Show Division.  

India Cements Capital Ltd

The Market Cap of India Cements Capital Ltd is Rs. 45.54 crores. The stock’s monthly return is -3.76%. Its one-year return stands at 78.86%. The stock is currently 25.98% below its 52-week high.

India Cements Capital Limited is a holding company primarily involved in foreign currency trading. It operates through its Money Changing segment, providing money exchange services under the brand name For Xchange. 

Additionally, through its Midas Advisory product, the company offers advisory services to exporters and importers on foreign exchange market strategies. In the travel sector, the company provides a range of services, including ticketing, hotel bookings, and visa processing, under the Coromandel Travels brand.  

SI Capital & Financial Services Ltd

The Market Cap of SI Capital & Financial Services Ltd is Rs. 15.21 crores. The stock’s monthly return is 27.10%. Its one-year return is 14.58%. The stock is 10.21% away from its 52-week high.

SI Capital & Financial Services Ltd is a Non-Banking Financial Company (NBFC) that has been in operation since 1994. It primarily offers a range of financial services, including foreign exchange services, personal and business loans, and fee-based services under the Reserve Bank of India’s (RBI) guidelines. The company also provides gold loans and vehicle financing options, and its role as a Full-Fledged Money Changer allows it to cater to both retail and corporate clients. SI Capital is headquartered in Pollachi, Tamil Nadu.

Mahasagar Travels Ltd

The Market Cap of Mahasagar Travels Ltd is Rs. 4.58 crores. The stock’s monthly return is -3.00%. Its one-year return is 66.29%. The stock is 84.54% away from its 52-week high.

Mahasagar Travels Ltd, founded in 1993, is a Gujarat-based company that provides tour and travel services, primarily through its bus operations. The company is known for offering well-managed travel experiences, emphasizing customer satisfaction through punctuality and high-quality service. 

In addition to its core travel services, Mahasagar also operates two petrol pumps in Junagadh. As part of the tourism and transportation sector in India, Mahasagar Travels Ltd is one of the smaller players.  

What Are Tourism Stocks India?

Tourism stocks in India refer to shares of companies that are directly or indirectly involved in the tourism sector. This includes businesses such as hotels, airlines, travel agencies, and entertainment services, which benefit from increased travel and tourism activities.  

Investing in tourism stocks can be a way to gain exposure to the growth potential of India’s travel and tourism industry. Factors such as economic development, rising disposable incomes, and government initiatives to promote tourism can significantly influence the performance of these stocks.

Features Of Indian Tourism Stocks

The key features of Indian tourism stocks include exposure to a rapidly growing sector driven by increasing domestic and international travel. As India continues to develop its infrastructure and tourism attractions, these stocks offer potential long-term growth.

1. Seasonal Demand Fluctuations
   Indian tourism stocks often experience seasonal fluctuations, with higher demand during holiday seasons and festivals. Investors should be prepared for varying revenue and stock performance depending on peak and off-peak periods in the travel industry.
2. Diverse Business Segments
   Many tourism companies in India operate across multiple segments, such as hotels, travel agencies, transport, and event management. This diversification allows them to tap into different revenue streams and mitigate risks in any one particular area.
3. Government Initiatives
   The Indian government’s push to promote tourism through campaigns like “Incredible India” and infrastructure improvements benefits tourism stocks. Policies supporting tourism, such as visa relaxations and regional development, can boost stock performance and attract more investment.
4. Foreign Tourist Influx
   Rising numbers of foreign tourists create significant opportunities for growth in the tourism sector. Companies catering to international visitors benefit from higher spending and longer stays, positively influencing their profitability and stock value.
5. Impact of External Factors
   Tourism stocks are sensitive to external factors like global pandemics, natural disasters, and political instability. Such events can drastically reduce travel demand, affecting company revenues and stock performance, making them a risk-sensitive investment.

Best Tourism Stocks In India Based on 6 Month Return

The table below shows the best tourism stocks in India based on 6 month returns.

Tourism Sector Stocks In India Based on 5 Year Net Profit Margin

The table below shows the tourism sector stocks in India based on 5-year net profit margin.

Travel and Tourism Stocks To Buy In India Based on 1M Return

The table below shows the travel and tourism stocks to buy in India based on a 1-month return.

High Dividend Yield Tourism Related Stocks In India

The table below shows the high dividend yield of tourism-related stocks in India.

Historical Performance of Tourism Industry Stocks India

The table below shows the historical performance of tourism industry stocks in India.

Factors To Consider When Investing In Top Tourism Stocks In India

The factor to consider when investing in top tourism stocks in India is the industry’s dependence on travel trends and consumer spending. A company’s performance can be heavily influenced by changes in travel behavior and economic conditions.

1. Seasonality of Business
   Tourism stocks often experience seasonal variations in revenue. Investors should consider the impact of peak and off-peak travel seasons, as well as the importance of managing cash flow during slower periods for consistent growth.
2. Economic Conditions
   The tourism industry is closely tied to the economy. During economic downturns, discretionary spending on travel decreases, which can negatively affect tourism stocks. Conversely, a strong economy boosts consumer spending, increasing travel demand.
3. Government Policies and Support
   Government initiatives, such as tourism promotion campaigns, tax incentives, or infrastructure development, can significantly benefit the tourism industry. Investors should monitor how such policies impact tourism growth and the performance of tourism-related stocks.
4. Global Tourism Trends
   International travel trends, including increased foreign tourist arrivals and preferences for specific destinations, can influence tourism stocks. Companies with strong international appeal may benefit from rising foreign tourist numbers, boosting stock performance.
5. Health and Safety Concerns
   Pandemics, health crises, or other travel restrictions can severely impact the tourism industry. Investors must consider the risks of unforeseen events that could lead to reduced travel demand and negatively affect tourism company revenues.

How To Invest In Tourism Stocks In India?

To invest in tourism stocks in India, open a Demat and trading account with a trusted brokerage like Alice Blue. After completing the KYC process, research top tourism companies listed on the stock exchanges and make informed investments. 

Impact of Government Policies on Tourism Stocks In India

Government policies have a significant impact on tourism stocks in India. Initiatives like the “Incredible India” campaign and visa relaxations attract more tourists, driving growth for companies in the tourism sector. These efforts boost revenue for airlines, hotels, and travel agencies, improving stock performance.

Infrastructure development, such as the expansion of airports, roads, and railways, further enhances accessibility to tourist destinations. This increases travel demand and positively affects tourism-related stocks by making travel more convenient and widespread.

However, restrictive policies, such as higher taxes or sudden regulations, can hinder growth in the sector, potentially reducing profitability and negatively impacting tourism stocks in the market.

How Tourism Stocks Perform in Economic Downturns?

During economic downturns, tourism stocks typically face challenges as consumers cut back on discretionary spending, including travel and vacations. This leads to reduced demand for services such as airlines, hotels, and travel agencies, negatively impacting their revenues and profitability. Consequently, tourism stocks may experience significant declines during such periods.

However, companies with diversified business models, strong balance sheets, and cost-efficient operations may be more resilient. Additionally, domestic tourism might still provide some support, as people opt for local travel instead of international trips, helping mitigate the full impact of the downturn.

Advantages Of Investing In Tourism Stocks In India?

The primary advantage of investing in tourism stocks in India is the sector’s growth potential, driven by increasing domestic and international travel. As India develops its tourism infrastructure, companies in this sector are poised for long-term gains.

1. Rising Domestic Tourism
   India’s expanding middle class and increasing disposable incomes have led to a surge in domestic travel. This growing demand for tourism-related services offers substantial revenue growth opportunities for companies in the tourism industry.
2. Government Support
   Government initiatives like “Incredible India” and infrastructure development significantly boost tourism. Policies aimed at improving travel accessibility, promoting destinations, and easing visa restrictions contribute to the industry’s expansion, positively impacting tourism stocks.
3. Foreign Tourist Arrivals
   With India emerging as a popular global destination, the influx of foreign tourists brings higher spending. This increased demand for services such as hotels, transport, and tours supports revenue growth for companies, boosting stock performance.
4. Diverse Investment Opportunities
   Tourism stocks span multiple sectors like hotels, airlines, travel agencies, and entertainment. This diversity allows investors to spread risk while benefiting from different segments within the tourism industry, improving the chances of consistent returns.
5. Resilient Long-Term Growth
   Despite short-term volatility, tourism stocks have shown resilience over the long term. As global and domestic travel trends continue to rise, the industry provides sustainable growth opportunities, making tourism stocks attractive for long-term investors.

Risks Of Investing In Tourism Stocks In India?

The main risk of investing in tourism stocks in India is the sector’s sensitivity to economic downturns. In tough economic times, discretionary spending on travel decreases, which directly impacts the revenues and profitability of tourism companies.

1. Seasonal Fluctuations
   Tourism stocks are often affected by seasonality, with peak travel seasons yielding higher revenues and off-peak seasons leading to declines. This cyclical nature can result in inconsistent stock performance throughout the year.
2. External Shocks
   Tourism is highly vulnerable to external events like pandemics, natural disasters, or geopolitical tensions. These unforeseen incidents can lead to sudden drops in travel demand, significantly affecting the revenue of tourism companies.
3. Dependence on Consumer Spending
   Tourism relies heavily on discretionary spending. In times of economic slowdown or rising inflation, consumers may reduce their travel budgets, leading to decreased demand for tourism services and negatively impacting related stocks.
4. Regulatory Changes
   Changes in government regulations, such as increased taxes or stricter environmental guidelines, can raise operating costs for tourism companies. These regulatory shifts can impact profitability and reduce the attractiveness of tourism stocks.
5. Competition
   The tourism sector is highly competitive, with many players vying for market share. Intense competition can lead to price wars and reduced margins, making it challenging for individual companies to maintain consistent profitability and stock performance.

Tourism Sector Stocks In India GDP Contribution

The tourism sector in India plays a vital role in contributing to the country’s GDP. It supports various industries, including hospitality, transportation, and retail, creating employment and boosting economic growth. According to estimates, the tourism sector contributes approximately 9-10% to India’s GDP, making it a significant part of the economy.

The growth of tourism stocks is closely linked to this GDP contribution. As domestic and international travel increases, tourism-related companies experience higher demand, which in turn positively impacts their stock performance. Government initiatives and infrastructure improvements further drive this sector’s GDP contribution.

Who Should Invest In Best Tourism Stocks In India?

Investing in the best tourism stocks in India is ideal for those looking to tap into the growing travel and hospitality industry. With increasing domestic and international tourism, these stocks offer potential long-term growth and diversification opportunities for various types of investors.

1. Long-Term Investors
   Investors with a long-term horizon can benefit from the consistent growth in tourism, driven by rising travel demand and government support. These stocks may offer steady returns as the sector continues to expand.
2. Risk-Tolerant Investors
   Tourism stocks are sensitive to external events, such as pandemics and economic downturns. Investors comfortable with moderate risk and market volatility can consider these stocks for potential high rewards during periods of economic recovery.
3. Diversification Seekers
   Those looking to diversify their portfolio with exposure to different sectors can invest in tourism stocks. This sector encompasses various industries such as hotels, airlines, and travel agencies, providing a broader range of investment opportunities.
4. Income-Oriented Investors
   Some tourism companies, particularly established ones, may offer dividends and stable returns, making them a good choice for income-focused investors seeking regular payouts while benefiting from the sector’s growth.

Best Tourism Stocks In India FAQs

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Disclaimer: The above article is written for educational purposes, and the companies’ data mentioned in the article may change with respect to time The securities quoted are exemplary and are not recommendatory.