Top 10 Tourism Stocks in India 2025

India is a culturally diversified country. Different cultural and religious events plays a crucial role in attracting tourists from foreign countries. Ministry of Tourism acclaimed that around 48 lakh tourists visited India in the first half of 2024. As a result, analysts expect that the country’s travel and tourism sector will reach $125 billion by 2027. It is expected that more than 30 million foreign tourists will visit the country by 2028 every year. It could be a prominent opportunity for investors to consider investing in this promising sector. Thus, investing in tourism stocks in India could be beneficial for investors to generate higher returns in Dalal Street.  

However, most people still need clarification on what tourism stocks are and how they help people earn money. Don’t worry—we’ve got your back. Be on the passage to explore everything and explore the tourism stocks list for 2025 with their market capitalisation.       

What are Tourism Stocks?

Tourism stocks in India are the shares or equities of business enterprises engaged in different work segments, such as airlines, travel agencies, cruise lines, and hotels. India has become a popular travel destination across the world. And there is a huge potential in the travel and tourism sector to grow in the coming years. 

Tourism stocks could help investors diversify their portfolios. However, it is essential for the companies to operate at full efficiency or effectiveness. To invest in such stocks, conduct research or seek stock advisory services from the existing platforms. 

Tourism Stocks List By Market Capitalisation

*Data is updated as of 26th November 2024

Factors to Consider When Investing in Tourism Stocks in India

The stock market in India includes uncertainties that could occur due to high/low market volatility, environmental impact, health consequences, and other. Investing in top tourism stocks in India is good for earning returns, but remember that to make a diversified investment portfolio, you need to consider some factors. These include. 

• Regulatory Framework: Rules and regulations are essential for the smooth functioning of business enterprises in any industry. Likewise, in the case of the travel and tourism sector, numerous regulations are imposed that companies must comply with. While exploring tourism stocks in India, check the past record of the organisation to comply with the imposed regulations to invest potentially.  
• Industry Trends: Keep an eye on emerging and upcoming industry trends in the travel and tourism industry to make informed investment decisions. Choose stocks of companies that consistently adhere to industry trends such as dynamic customer preferences, competitive landscape, change in law or regulations, technological innovations, and environmental concerns. 
• Tech Integrations: In the ever-evolving technological era, businesses are required to adopt tech advances quickly to sustain a competitive edge in the market. Most organisations struggle to integrate technological innovations due to a lack of capital. Companies with effective capital or cash flow should be considered to integrate new technologies within their operational structure. 
• Economic Conditions: During economic downturns, the stock market might face volatility. Track economic indicators such as GDP (Gross Domestic Product), unemployability, budget initiatives, and more to get an idea of the economic health of the country before making investments. This could help you invest at the right time in potential stocks. 

Top Tourism Stocks Based on 1-Year Returns

*Data is updated as of 26th November 2024

Dividend Yield in Tourism Stocks in 2024

*Data is updated as of 26th November 2024

Advantages of Investing in Tourism Stocks 

Investors prefer top tourism stocks in India to appreciate capital and earn dividend income. But, do you know that it could offer several other benefits? Explore the advantages of investing in travel stocks and utilise your investment optimally. 

1. Diversified Portfolio: Investing in tourism stocks in India could help you diversify your investment portfolio to generate a balanced return. Such stocks come with favourable financial performance and a wider audience, which helps investors cut off the losses in other stocks. Tourism is also connected with other industries, such as hospitality, FMCG, Finance, and more. Thus, one can benefit from a boost in such sectors in terms of building wealth. 
2. Technological Integration: Travel and tourism companies are rapidly moving towards innovative digital tools so as to improve their operational structure. Selecting tourism stocks in India belongs to companies leveraging such technologies to sustain a competitive edge in the business environment. Effective technological integration of these companies could help them increase their profitability, which will deliver higher returns. 
3. Government Support: Government initiatives, such as tax benefits, policies, and promotional campaigns, support the travel and tourism sector in India. In the 2024 budget, the finance minister, Smt. Nirmala Sitharaman allocated ₹2,479.62 crores (3.3% more from 2023) to fund different schemes related to the tourism sector. Analysts expect that this will benefit investors in the stock market and generate higher returns in the coming years. 
4. Exposure to Booming Sector: As discussed earlier, India is a popular travel destination, and its cultural diversification encourages domestic and international travellers to move from one place to another. Investment in travel stocks in India could help investors gain exposure to the thriving sector and gain immense experience in the investing journey. 

Risks Associated With Tourism Stocks

The Indian stock market is all about high-risk, high-reward play. Undoubtedly, top tourism stocks in India have high growth potential, but they also involve several risks that investors should know about. 

• Economic Downturns: Discretionary spending decreases during economic slowdowns, reducing travel budgets. Consumers may struggle to afford vacations, reducing revenue for travel companies. This may result in declining the prices of travel stocks in India.
• Dynamic Regulations: Rules and regulations can be a huge factor in the travel sector. Changes in visa regulations, taxation, or other restrictions on travel could affect the growth and operations of companies. Therefore, it can create uncertainty for investors, which could impact the performance of top tourism stock in India.
• Aggressive Competition: Since the travel industry is highly competitive, companies are rapidly adopting a multi-man strategy to compete aggressively for market share. Competing and trying to sustain a competitive edge might result in price wars, squeezing profit margins, and the scramble for the satisfaction of customers away from long-term stock stability.
• Health Crises: Health crises like pandemics (COVID-19) seriously alter travel patterns. Consumers with increased health and safety concerns may avoid travelling which will reduce the demand for travel-related services. It will directly impact the prices of tourism stocks in India.

Let’s Wrap

The travel and tourism sector in India offers investors a compelling opportunity to witness higher growth potential and substantial capital appreciation. From the top tourism stocks in India, choosing one required considering essential factors and the company’s fundamentals. Research such stocks or use the stock advisory platforms available in the market. We suggest you consider Univest to get the best stock recommendations every time. It has a track record of delivering 30% returns in a month. Hurry up, download the Univest app now and start your journey with five free trades!  

FAQs on Tourism Stocks in India

1. What are the best tourism stocks in India?

Ans. Here are some of the best tourism stocks in India. 

• IRCTC Ltd. (NSE: IRCTC)
• BLS International Services Ltd. (NSE: BLS)
• TBO Tek Ltd. (NSE: TBOTEK)
• Thomas Cook India Ltd. (NSE: THOMASCOOK)
• Easy Trip Planners Ltd. (NSE: EASEMYTRIP)
• IXIGO Ltd. (NSE: IXIGO)
• Wonderla Holidays Ltd. (NSE: WONDERLA)

2. How to invest in top tourism stocks in India?

Ans. Investing in tourism stocks in India is an easy procedure. You just need to register with a broker and open a demat account. Research top tourism stocks or use the stock advisory platforms available in the market to make a diversified investment portfolio. Select the quantity you wish to buy and place an order. Track your investment in the portfolio section. 

3. Is investing in tourism stocks worth it?

Ans. The tourism industry in India has made a significant contribution to the growth of GDP (Gross Domestic Product), which is estimated to be $196 billion. The government has also announced a budget of ₹2,479.62 crores for the travel and tourism sector, which will be allocated for the central schemes. Thus, it is appropriate to say that tourism stocks in India will provide higher returns to investors in the coming years. 

4. Which tourism stocks to buy in 2025?

Ans. Here are the top tourism stocks list for 2025 with their market capitalisation. 

*Data is updated as of 26th November 2024

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