Tourism shares: What are the Best tourism stocks in India?

The travel industry is very big and covers a lot of ground. It overlaps with other industries like transportation and hospitality. It is one of the main things that make the economy grow and create jobs. Tourism helps a country's economy by bringing in more money, creating many new jobs, and building infrastructure. So tourism stocks play a significant role in the Indian Stock Market.

COVID-19 heavily affected the tourism industry and travel companies' share prices. The travel sector will take longer to get back to normal, even when it does. We think it will only get back to about 80% of what it was before the pandemic. 

Travel & Tourism Industry Overview

India's tourism industry is expected to bring in 250 billion US dollars in GDP, 137 million jobs, 56 billion US dollars in foreign exchange earnings, and 25 million foreign visitors by 2030. By 2028, tourism and hospitality in India are expected to bring in $ 50.9 billion in exports from visitors, up from $ 28.9 billion in 2018.

The number of tourists from other countries is expected to reach 30,500,000 by 2028.

By FY27, India's travel market is expected to be worth $ 125 billion, up from an estimated $ 75 billion in FY20. India's outbound trips are expected to reach 29 million by 2025 and cross the $24 billion mark by 2024. Analyzing the trends in travel sectors, experts predict that traveling stock prices will boom in the future.

Top 6 Travel Shares to Buy in 2022

(Share Price as of 17th October 2022)

Disclaimer: The securities quoted are exemplary and not recommendatory. Past performance is not indicative of future returns

BLS International Services

BLS International Services Limited offers tech-based visa, consular, and citizen services to different countries. It provides citizen and front-end services, verification and attestation, consular services, biometric and identity management, and more. BLS international travel stocks currently trade at ₹ 294.00 (on October 14th, 2022, at 1:31 PM IST)

Fundamentals 

Market Cap: ₹ 5,777 cr

• P/E Ratio(TTM): 78.73
• Debt to Equity: 0.02
• ROE: 21.61%
• Face Value: 1

EaseMyTrip

Since 2008, EaseMyTrip has been a travel agent in India that works online. Hotels, flights, tours, and buses can all be booked, and the company offers "white label" solutions. When it first came out in 2008, EaseMyTrip aimed at India's offline travel industry. It did this through business-to-business-to-consumer (B2B2C) sales channels and domestic travel aircraft. There was a way to make reservations. The price right now is ₹ 389.50 (on October 14th, 2022, at 1:33 PM IST)

Fundamentals 

Market Cap: ₹ 8,617 cr

• P/E Ratio(TTM): 69.76
• Debt to Equity: 0.68
• ROE: 53.16%
• Face Value: 2

IRCTC

The Indian government owns the Indian Railway Catering and Tourism Corporation, which runs the country's entire railway network. Both in terms of the employee and total square kilometers covered, India's railroads are the biggest in the world. Mini Ratna (Category-I) Central Public Sector Enterprise IRCTC operates under the Ministry of Railways. These travel shares are currently trading at ₹728 (on October 14th, 2022, at 1:34 PM IST).

Fundamentals 

Market Cap: ₹58,048 cr

• P/E Ratio(TTM): 70.14
• Debt to Equity: 0.07
• ROE: 39.75%
• Face Value: 2

Indian Hotels Company Limited

The Indian Hotels Company Limited (IHCL) is a hospitality management company based in India that operates a variety of establishments, including hotels, resorts, jungle safaris, palaces, spas, and even in-flight dining. The Tata Group of India is responsible for the company's operations. The hotel chain has 221 properties in 12+ countries and 400+ overall. Additionally, the firm embarked on several new initiatives. Qmin is one such service; it's a platform for delivering delicious cuisine right to your door. This tourism company shares currently trades at ₹312.00 (on October 14th, 2022, at 1:35 PM IST).

Fundamentals 

Market Cap: ₹46,923 cr

• P/E Ratio(TTM): 237.46
• Debt to Equity: 0.55
• ROE: -4.63%
• Face Value: 1

Thomas Cook

Thomas Cook, a well-regarded global travel agency, also operates in India. Thomas Cook established the company in 1881. Foreign exchange, domestic and international vacations, visas, passports, travel insurance, meetings, incentives, and conventions (MICE) are all services offered by these companies in addition to traditional travel agency ones. Its current price is ₹78.20 (on October 14th, 2022, at 1:36 PM IST).

Fundamentals 

Market Cap: ₹3618 cr

• P/E Ratio(TTM): NA
• Debt to Equity: 0.35
• ROE: -13.13%
• Face Value: 1

EIH Ltd.

Established in 1934, The Oberoi Group is now a premier provider of luxury hotels worldwide. The Oberoi Group's many subsidiaries, EIH Ltd and EIH Associated Hotels, stand out as its two most significant holding businesses (formerly East India Hotels). Operating mostly under the Oberoi Properties & Resorts and Trident names, the firm owns and runs 29 five- and four-star hotels in seven countries. It now provides corporate air services, flight food, airport lounge access, travel and tour planning, vehicle rental services, and more. Current share price is ₹184.35 (on October 14th, 2022, at 1:36 PM IST).

Fundamentals 

Market Cap: ₹11,588 cr

• P/E Ratio(TTM): 147.59
• Debt to Equity: 0.16
• ROE: -2.82%
• Face Value: 2

This is not an investment advisory. The blog is for information purposes only. Investments in the securities market are subject to market risks, read all the related documents carefully before investing. Past performance is not indicative of future returns. Please consider your specific investment requirements, risk tolerance, goal, time frame, risk and reward balance, and the cost associated with the investment before choosing a fund, or designing a portfolio that suits your needs. The performance and returns of any investment portfolio can neither be predicted nor guaranteed.

Conclusion:

Travel stocks, like any other investment, have the possibility of loss and gain. It's important to research before investing in these travel companies' shares since they are vulnerable to changes in the economy and the travel sector.