Best Tours & Travel Stocks to Buy Now

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Tanushree Jaiswal Tanushree Jaiswal 24th April 2024 - 06:59 am
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The best tourism stocks are those that are held by businesses engaged in the tourism and tourism sector, including airlines, hotels, online tourism agencies, and cruise operators. These stocks are frequently used as a gauge of the state of the economy since individuals who are more confident and have more discretionary income also have a tendency to tourism more. 

Tourism is experiencing a transformative phase in India as a result of changing consumer preferences and technology breakthroughs that are changing how people tourism and see the globe. As the tourism industry gradually bounces back from the effects of the world events, investors are seeing opportunities in equities that show resilience and room to develop. If you want to profit from the tourism industry's comeback, you must find the top tourism stocks in India for 2023.

5 of the Best Tourism Stocks to Buy Now

Who Should Invest in Best Tourism Stocks?

The stocks of companies operating in the tourism sector, including airlines, hotels, cruise lines, online tourism agencies, and more, are known as tourism stocks. Global events, tourism restrictions, consumer demand, and economic circumstances are some of the reasons that frequently impact these stocks. Purchasing tourism-related stocks might help you diversify your holdings and profit from the industry's potential for development. 

Tourism stocks, however, are also volatile and dangerous as they are susceptible to unforeseen events and shocks. Consequently, investing in the top tourism stocks is appropriate for those with a lengthy time horizon, a high tolerance for risk, and a keen interest in the tourism sector.

Benefits of Investing in the Best Tourism Stocks

1. Exposure to a Large and Growing Market

It is anticipated that the tourism industry worldwide would reach a value of $11.4 trillion by 2025, propelled by factors including growing disposable income, growing urbanization, and evolving customer preferences. Purchasing tourism stocks might provide you with entry to this lucrative and rapidly growing market.

2. Possibility of High Returns

When the tourism business is expanding and recovering from downturns, tourism stocks may provide significant gains. Several equities have had tremendous growth recently, such as Makemytrip and IRCTC.

3. Diversification Advantages

Tourism stocks provide you exposure to a variety of tourism-related industries and geographical areas, which may help you diversify your portfolio. You can invest in domestic or foreign tourism stocks, business or leisure tourism stocks, or online or offline tourism stocks, for example. Investing in a diverse portfolio can lower overall risk and increase.

Things to Consider Before Investing in Bеst Tourism Stocks Stocks

1. Your Investment Objectives and Risk Assessment

It is important to have a clear understanding of your investment goals and risk tolerance before making any tourism stock purchases. They are more suited for risk-taking investors who are willing to tolerate large swings in value and are searching for cash.

2. The tourism Companies' Financial Performance and Valuation

The tourism firms you wish to invest in should have their financial statements and statistics examined. These should include their revenue, earnings, cash flow, debt, margins, return on equity, and price-to-earnings ratio. 

3. The Industry Outlook and Trends

It is imperative that you be abreast of the latest and developing patterns and obstacles in the tourism business, including but not limited to consumer behavior, technological innovation, regulations, competition, and environmental concerns.

Overview of the Stocks

1. Indian Hotels Co Ltd

Market Cap ₹ 67,520 Cr.
Stock P/E 61.3
Book Value ₹ 58.3
ROCE 12.6 %
ROE 12.7 %
Face Value ₹ 1.00
Debt to equity 0.33
Return on assets 7.58 %
PEG Ratio 1.05
Int Coverage 7.2

2. IRCTC

Market Cap ₹ 77,624 Cr.
Stock P/E 71.8
Book Value ₹ 35.6
ROCE 59.2 %
ROE 45.4 %
Face Value ₹ 2.00
Debt to equity 0.02
Return on assets 22.0 %
PEG Ratio 2.06
Int Coverage 84.6

3. EIH Ltd

Market Cap ₹ 19,636 Cr.
Stock P/E 42.9
Book Value ₹ 56.0
ROCE 15.6 %
ROE 11.4 %
Face Value ₹ 2.00
Debt to equity 0.06
Return on assets 8.92 %
PEG Ratio 2.84
Int Coverage 22.7

4. Praveg Ltd

Market Cap ₹ 2,268 Cr.
Stock P/E 114
Book Value ₹ 73.4
ROCE 56.2 %
ROE 56.2 %
Face Value ₹ 10.0
Debt to equity 0.01
Return on assets 34.7 %
PEG Ratio 0.62
Int Coverage 45.3

5. Easy Trip Planners Ltd

Market Cap ₹ 8,352 Cr.
Stock P/E 52.2
Book Value ₹ 3.46
ROCE 54.6 %
ROE 46.9 %
Face Value ₹ 1.00
Debt to equity 0.19
Return on assets 25.6 %
PEG Ratio 0.51
Int Coverage 55.8

Conclusion

Purchasing the top tourism stocks in India carries a significant risk because of the industry's vulnerability to upheavals, but it also provides tremendous growth potential. Prospective investors need to establish their objectives, tolerance for risk, and time horizon. They also need to thoroughly investigate tourism agencies and use well-defined, diverse tactics to ensure their success.

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Disclaimer: Investment/Trading in securities Market is subject to market risk, past performance is not a guarantee of future performance. The risk of loss in trading and investment in Securities markets including Equites and Derivatives can be substantial.

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