Hospitality Sector Stocks in India: Which Company Has the Largest Market-Cap?

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Hospitality Sector Stocks in India: Which Company Has the Largest Market-Cap?

Hospitality Sector In India 

When speaking of the economy, there are a number of industries present which work in the growth of a nation and increase its GDP. Most of the primary sectors invest in raw materials and provide finished products to their customers. But there is one more industry that is considered to be a great help to the development of India, and it is the hospitality industry. Over the last few years, the country has risen from the effects of COVID-19 and has seen tremendous growth in the hospitality sector. The hospitality sector in India includes lodging and boarding, transportation services, food and drinks, theme parks, and more.

Not only does the foreign population come to India for their vacations, but even the locals, and mostly millennials, are spending their money on the concept of staycations. Where they are working from some of the most scenic locations in India, all of this resulted in the massive upstream of money flow in the hospitality sector. According to the research done by Statistica in 2017 - 2018, the occupancy in some of the top hotel chains in India has seen a growth of 65% due to an increase in demand for leisure and business travelers. 

Future of Hotel Industry in India

According to the reports published by WTTC, the tourism and travel industry of India was quite impactful in the country's GDP in 2019, so much so that it ranks in 10th position in the list of 185 countries. The total contribution of the hospitality sector to India's GDP was 6.8%, with total revenue of Rs 1,368,100 crore in 2020. 

By 2028 international tourist arrivals will reach an all-time high of 30.5 billion, which could end up generating a revenue of over 9 billion dollars. Global hotel chains are also increasing their presence in India, and by 2028 they will account for 47% share of the hospitality sector of India. 

Best Hotel Stocks in India

Given below is the list of the top 3 hospitality companies in India which are currently having the best market capitalization in the industry. These are the leading names of the hospitality sectors of India. It's worth having information about their finances and work. 

Indian Hotels Company Ltd

IHC is the largest hotel chain in the country, and it is owned by Tata Group. This company is also considered to be Asia's largest and most notable one in terms of its customer-centric workforce. Some of the big names in the Indian hotel industry, such as Taj Hotels Resorts and Palaces, come under the ownership of IHC. Apart from this, IHC is quite a dominant force in the Indian hospitality sector. The Taj Hotels chain is the largest hotel chain present in India, and the idea behind making IHC this big was started by the TATA group in order to build one of the top-class hotel chains with global standards in India. 

  • Market Cap:- 44,593 Crores
  • Dividend Yield:- 0.13
  • Sector PE:- 66.76
  • Shareholdings:- 38.19% Promoter, 29.69% DII. 17.05% Public, and 15.07% FII. 
  • Revenue March 2022:- 3056 Crores
  • Net Profit 2022:- -222 Crores

EIH Ltd. 

EIH Ltd. hotels are owned and operated by Oberoi. Also, the company provides management contracts, restaurant management, airline catering, travel and tour services, car rentals, and other categories of services that come under the umbrella of the hospitality sector. NIH is one of the biggest hospitality firms in India and has a market value of 7,123 crores. Moreover, Oberoi hotels have an excellent reputation in the Indian market, and in 2022 they currently have more than 31 luxury hotels. Besides this, the company also operates some hotel groups across India under the name Trident brand. The Oberoi hotels are the luxury brand, and Trident is the five-star brand operated by EIH Ltd. 

  • Market Cap:- 11,881 Crores
  • Dividend Yield:- 5.67
  • Sector PE:- 66.76
  • Shareholdings:- 46.3% Public, 35.74 Promoter, 13.89% DII, 3.73% FII, and 0.01% Others. 
  • Revenue March 2022:- 985 Crores
  • Net Profit 2022:- -48 Crores. 

Hotel Leela Ventures Ltd.

HLV is the most renowned name in the Indian hospitality sector. This company owns, manages, and operates in some of the biggest palaces, forts, resorts, and hotels across the nation. Leela Kempinski has properties in Mumbai, Goa, Bangalore, and even Kerala. The class of luxury this company provides is one step above its competitors. As a result, many big names in India love to spend their vacations and business trips in Leela hotels. At present, the current evaluation of Hotel Leela Ventures Ltd is at 653 crores. This makes HLV one of the most expensive and valuable hospitality organizations in India. 

  • Market Cap:- 646 Crores
  • Dividend Yield:- 0.13
  • Sector PE:- 66.76
  • Shareholdings:- 48.7% Public, 49.57% Promoter, and 2.17% DII.
  • Revenue March 2022:- 73 Crores
  • Net Profit 2022:- -42 Crores.

(All the above data is as of 21st October 2022)

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

Best Hospitality Shares to Buy 

Given below are some of the best stocks in the Indian hospitality sector in no particular order. 

Company Name Market CapP/E
Indian Hotels Company Ltd44,593 Crores225.39
EIH Ltd. 11,881 Crores151.34
Hotel Leela Ventures Ltd646 Crores-
Westlife Development Ltd.11,622 Crores211.95
Sapphire Foods India Ltd.9,340 Crores76.11
Chalet Hotels Ltd.7,926 Crores-
Lemon Tree Hotels Ltd.6,639 Crores-
Mahindra Holidays and Resorts India Ltd.5,552 Crores46.65
India Tourism Development Corporation Ltd.5,943 Crores71.73
Oriental Hotels Ltd.1,286 Crores47.11

(Data as of 21st October 2022.)

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

Wrapping Up

Well, these were some of the important hospitality sector stocks in India. The Indian hospitality industry has been a prime contributor to India's GDP growth. As a result, without a doubt, we believe this sector has massive potential for growth in the coming years. You could be making huge profits if you invest carefully in stocks of this sector, and investing in it will eventually lead to diversification of your investment folio as well. 

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. 

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