Shares of smallcap stock Responsive Industries rallied up to 7% on announcing its selection as a key partner for several prestigious hospitality and other projects currently under construction in the holy city of Ayodhya.
The smallcap stock, which has more than doubled in the last one year, rallied up to 7% to hit day’s high at Rs 324.30 on Wednesday.
Thane-based Responsive Industries is a leading manufacturer of PVC products like vinyl flooring, synthetic leather and luxury vinyl tiles.
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The company said it anticipates a significant positive impact on its revenue as a result of the partnerships in Ayodhya. “The historic and spiritual significance of Ayodhya, coupled with its booming growth as a tourist destination, makes it a focal point for various development initiatives. The company is proud to play an integral role in these endeavors by providing top-tier solutions in flooring, wall coverings,” it said.
Estimates done by Jefferies show that Ayodhya can attract as many as 5 crore tourists a year. “A $10 billion makeover (new airport, revamped railway station, township, improved road connectivity etc) will likely drive a multiplier effect with new hotels & other economic activities. It can also set a template for infra-driven growth for tourism,” it said.Tourism is projected to surge and increased economic and religious migration to Ayodhya, multiple sectors stand to benefit including hotels, airlines, hospitality, FMCG, travel ancillaries, cement etc.
At present, Ayodhya has 17 hotels with 590 rooms. About 73 new hotels are in the pipeline, of which 40 are already under construction. IHCL, Marriott International, Wyndham, etc. have already signed deals for hotels while ITC Hotels is said to be exploring opportunities in Ayodhya.
Also read: 10 stocks with Ayodhya Ram Mandir link rally up to 148% in January
Investors have been betting on stocks like Pakka, Kamat Hotels, SIS, Praveg and Apollo Sindoori Hotels as part of the Ayodhya Ram Mandir investing theme.
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