Jefferies recommends purchasing four stocks to capitalize on India’s thriving travel industry
The global brokerage firm Jefferies remains optimistic about the travel and tourism sector, maintaining a Buy rating for all the stocks it covers.
Their stock preference order includes Interglobe Aviation Ltd. at the top, followed by Indian Hotels Company Ltd., GMR Airports Ltd., and TBO Tek Ltd.
Jefferies has set target prices of ₹5,260 for IndiGo, ₹1,000 for Indian Hotels Co, ₹77 for GMR Airports, and ₹1,743 for TBO Tek, showcasing their confidence in the growth potential of these companies within the sector.
According to Jefferies, demand in India, both domestic and outbound, remains strong even after the post-Covid recovery. Industry pricing remains high across segments, indicating that Indian consumers are prioritizing travel over other expenses.
Key themes for 2025 include consumer preference for premium and experiential travel, a record wedding season, FTA revival, Mahakumbh, and limited supply. Additionally, the opening of new airports in Navi Mumbai and Noida is expected to further boost travel demand, while IndiGo is set to receive Airbus XLR aircraft.
The World Travel & Tourism Council (WTTC) reports that the sector contributed a significant ₹19.13 lakh crore to India’s GDP in 2023. Employment in the industry has also grown by 10%, reaching nearly 42 million jobs, which is 8% higher than pre-pandemic levels. By the end of 2024, an additional 2.45 million jobs are projected to be created, with 31% in direct roles like tour guides and hotel staff, and the rest in supporting industries such as logistics and IT.
Experts predict that by 2034, India’s tourism sector could double its GDP contribution to ₹43.25 lakh crore. While the industry is on a strong growth trajectory, addressing infrastructural and experiential challenges could position tourism as a key driver of India’s economic success.
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Disclaimer: This blog post is for informational purposes only and should not be considered financial advice. Investors should conduct thorough research and consult with a qualified financial advisor before making any investment decisions.