Best Leisure and Travel Stocks in India

India is home to a diverse range of ecosystems, topographies, and locations of outstanding natural beauty. This offers an enormous opportunity to realise the potential of the tourism industry. The travel market in India is likely to reach US $125 billion by FY 2027 from an estimated US $75 billion in FY 2020. In India, the direct contribution of the industry to the GDP is likely to record an annual growth rate of 7-9% between 2019 and 2030. 

The Government of India has realised the potential of the tourism industry and has taken several steps to make India a global tourism hub. These initiatives include the allocation of US $290.4 million to the Ministry of Tourism under the Union Budget 2023-24. Let us understand the sector in brief with the lens of the 5 best leisure and travel stocks in India on the basis of market capitalisation.

Best Leisure and Travel Stocks in India

Note: The abovementioned stocks have been selected on the basis of the market capitalisation, and the data is as of December 01, 2023.

Easy Trip Planners Ltd

Easy Trip Planners is an India-based online travel agency offering a comprehensive range of travel-related products and services for end-to-end travel solutions, including airline tickets, hotels and holiday packages. It provides mainly 3 services: Airline passage, Hotel Packages and other services. During FY 2023. It earned 90.89% of its revenue from Airline passage, 8.44% from Hotel Packages, and 0.67% from other services, which include rail tickets, bus tickets, taxi rentals, and ancillary value-added services.
Key Metrics:

• ROE: 46.9%
• ROCE: 54.6%
• Profit Growth CAGR (5Y): 103% 

Delta Corp Ltd

Delta Corp Limited is primarily engaged in the operation of casinos. The company’s segments include Real Estate, Gaming, Hospitality and Others. During FY 2023, the company generated ~80% of revenue from casinos, 15% from online gaming and 5% from hospitality. In 2017, the company entered the online gaming market and cemented its position in India’s gaming industry with the acquisition of Adda52.com, one of the largest online gaming sites in India.

Key Metrics:

• ROE: 12.4%
• ROCE: 16.3%
• Profit Growth CAGR (5Y): 13% 

Imagicaaworld Entertainment Ltd

Imagicaaworld Entertainment Ltd is the first global-scale theme Leisure & Entertainment Destination in India. The company’s flagship Imagicaa park at Khopoli is spread over 110 acres, an all-weather family entertainment destination comprising a Theme Park, Water Park, Snow Park, and a 5-star Hotel – Novotel Imagica Khopoli. During FY 2023, it generated ~55% of revenue from the sale of tickets, 25% from food & beverage, 5% from retail, 5% from rooms and the remaining 10% from other services.

Key Metrics:

• ROE: 0%
• ROCE: 34.6%
• Profit Growth CAGR (5Y): 34%

TAJ GVK Hotels and Resorts Ltd

TAJ GVK Hotels and Resorts Ltd is a joint venture between the Hyderabad-based GVK Group and Indian Hotels Company Limited (IHCL). It is engaged in the business of owning, operating & managing hotels, palaces, and resorts under the brand name of TAJ. It owns & operates 3 five-star hotels in Hyderabad and, 1 five-star hotel each in the cities of Chennai, Chandigarh and 1 five-star luxury hotel in Mumbai through a joint venture company i.e Green Woods Palaces and Resorts Pvt Ltd.

Key Metrics:

• ROE: 18.4%
• ROCE: 21.8%
• Profit Growth CAGR (5Y): 31%

EIH Associated Hotels Ltd

EIH Associated Hotels Ltd owns premium luxury hotels under the luxury ‘Oberoi’ and five-star ‘Trident’ brands. It is a joint venture between the Oberoi Family and the Rajan Raheja Group. At the end of FY 2023, the company had 8 hotels and 869 keys under the ‘Oberoi’ and ‘Trident’ brands and served 97000+ guests.

Key Metrics:

• ROE: 17.8%
• ROCE: 23.3%
• Profit Growth CAGR (5Y): 11%

Conclusion

In India, the leisure and travel industry is on the rise, driven by the country’s diverse landscapes and rich cultural heritage. The sector is expected to witness growth in the near future as the government has realised the potential of the sector and made numerous investments for the growth of the sector. If the above stocks interest you, analyse them and invest by opening a demat account with Angel One online for a hassle-free process.

Disclaimer: This article is written for educational purposes only. The securities mentioned are only examples and not recommendations.