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In the world of cricket, few events can match the sheer grandeur and excitement of the Cricket World Cup. Held once every four years, it’s a tournament that captivates not just fans but also investors looking to make a financial impact. As India proudly hosts the Men’s Cricket World Cup in 2023, the country is not just preparing for an epic sporting spectacle; it’s also gearing up for a financial powerhouse. This is where the iconic ‘Mauka Mauka’ anthem, embodying the contagious enthusiasm of cricket fans worldwide, finds its perfect resonance. As India gets ready to welcome the cricketing world, we delve into the potential economic windfall that awaits three stocks ready to capitalize on the World Cup fever sweeping through India.
As the calendar flips to October, the world’s cricketing attention is firmly fixed on the forthcoming World Cup. This spectacular event is set to unfold across major cities in India, and for astute observers with a financial lens, something more than just cricket bells rings true. We are talking about a tremendous push for the hospitality and tourism sector – an industry that is about to witness a meteoric rise in fortunes.
According to an official ICC report, a remarkable 20% of attendees at past World Cups hailed from foreign shores, while a staggering 85% of attendees ventured from outside the host cities. The result? An economic windfall that reverberated through previous host nations, with the UK benefiting to the tune of nearly Rs. 3600 crores to its economy.
Before we dive into the stocks poised to thrive during the 2023 World Cup, let’s take a quick look at historical market returns during previous World Cup seasons.
| Year | Returns |
| 2003 | 71.9% |
| 2007 | 54.77% |
| 2011 | -24.62% |
| 2015 | -4.06% |
| 2019 | 12.02% |
– In 2003, market returns soared by an impressive 71.9%.
– 2007 saw a substantial increase of 54.77%.
– However, 2011 witnessed a temporary setback with a dip of -24.62%.
– In 2015, there was a minor hiccup with returns declining by -4.06%.
– In 2019, the markets rebounded, posting a gain of 12.02%.
These numbers underscore the potential for significant market movements during World Cup seasons, and the 2023 World Cup in India is poised to follow suit.
IRCTC, at its core, is deeply entrenched in the catering and hospitality industry. With an impressive portfolio that includes 315 food plazas, 57 Jan Ahaars, and 11 Base Kitchens, the company’s footprint in the culinary landscape is substantial.
The internet booking platform orchestrated by IRCTC registers a staggering 11.82 lakh tickets sold per day, a testament to its dominant position in the market. As it stands, IRCTC enjoys a near-monopoly status, positioning it as a formidable player in the Indian travel and hospitality sector.
As tourists flood India for the World Cup, IRCTC is perfectly positioned to reap the rewards. Its focus on passenger comfort and efficiency makes it a top pick for investors eyeing the hospitality sector.
Interglobe Aviation, better known as INDIGO, is a formidable contender in the Indian aviation sector, commanding an impressive domestic market share of around 56%. With the Cricket World Cup hosted in India, the travel and flight demand are poised to ascend to new heights.
What sets INDIGO apart is its distinction as one of the industry’s low-cost operators, a strategic advantage that is bound to play a pivotal role in the upcoming surge in demand. In an industry known for its high costs, INDIGO’s cost-efficient operations are likely to trigger operational leverage, resulting in exponential improvements in profitability.
INDIGO represents an enticing prospect for investors looking to capitalize on the anticipated aviation sector boom during the World Cup.
IHCL, with its impressive portfolio, currently boasts 191 hotels in its inventory as of Q1FY24, with an additional 79 hotels in the pipeline. Standing as the largest hotel player in India, the company has set its sights on an ambitious target of reaching 300 hotels by FY25.
IHCL’s brand equity shines through its renowned brands, including Taj, Vivanta, and Ginger. With the Cricket World Cup on the horizon, IHCL is positioned for a potential occupancy rate of 100%, given the expected surge in travel and tourism.
Similar to the aviation industry, the hotel sector is asset-intensive, and IHCL’s operational efficiency is poised to unlock the benefits of operational leverage. This, in turn, is anticipated to exert a positive influence on the company’s bottom line, making IHCL an appealing prospect for investors eyeing opportunities in the hospitality sector.
As India takes center stage in hosting the 2023 Cricket World Cup, the economic prospects for key sectors such as hospitality, aviation, and food and beverages look exceedingly promising. Companies like IRCTC, INDIGO, and IHCL, armed with operational efficiency and dominant market positions, stand to reap the rewards of this sporting extravaganza. With a track record of success in asset-intensive industries and the potential for operational leverage, these companies offer investors a compelling opportunity to capitalize on the World Cup’s economic impact.
**Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. It is based on several secondary sources on the internet and is subject to changes. Please consult an expert before making related decisions.**
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