India's inbound tourism witnessed a remarkable 64% surge in FY24; here are Top 4 travel stocks of 2024 with the highest return

The Indian tourism sector is one of the fastest-growing economic sectors in the country. India’s tour and travel operators are expected to grow revenue by 15-17% this fiscal year, driven by rising domestic and international travel, according to CRISIL. This growth is supported by improving infrastructure, rising incomes, shifting travel patterns, and the government’s push for domestic tourism. The country’s inbound tourism witnessed a remarkable 64% surge in FY 2023-24 compared to the previous year, attracting 9,236,108 visitors. Despite this growth, the numbers are still 15.5% below pre-pandemic levels.

Rising disposable incomes, significant infrastructure improvements—especially in transportation connectivity—and the government's allocation of ₹2,479 crore for the tourism sector in the FY25 Union Budget reflect a strong commitment to enhancing tourism infrastructure.

As a result, the growth in the travel and tourism industry has positively impacted several stocks.

Here are four key stocks in the travel and tourism sector, including tour operators, online travel agencies, and related businesses, along with their year-to-date (YTD) returns.

Source: Screener.in

Thomas Cook (India) Ltd (YTD Return: 47.4%)

In Q1FY25, the company reported consolidated revenue of ₹2,106 crore, reflecting a 10.9% year-on-year (YoY) growth. Net profit stood at ₹73 crore, marking a 2.82% YoY increase. However, the operating margin declined to 6%, compared to 7% in the same quarter last year. By the end of FY24, the company had reported a net profit of ₹345 crore, with a net margin of 3.74%.

Recently the company has inaugurated its new franchise outlet in Chromepet, Chennai - to leverage the high-growth market of the city and its surrounding catchments. The new Chennai outlet expands Thomas Cook India's network to 9 locations in the city and 15 across Tamil Nadu.

TBO TEK Ltd (YTD Return: 24.4%)

In Q1FY25, the company reported consolidated revenue of ₹418 crore, reflecting a 21.45% year-on-year (YoY) increase, while net profit rose 29.79% YoY to ₹61 crore. The operating margin improved to 19%, up 1% quarter-on-quarter (QoQ). By the end of FY24, the company recorded a net profit of ₹201 crore, with a net margin of 14.42%.

Recently, the company announced the incorporation of a new step-down subsidiary in the Canary Islands as part of TBO Tek’s expansion strategy to strengthen its presence in the region.

BLS International Services Ltd (YTD Return: 18.8%)

In Q1FY25, the company reported consolidated revenue of ₹493 crore, marking a 28.47% year-on-year (YoY) growth. Net profit surged by 70.42% YoY to ₹121 crore, while the operating margin increased to 27%, up from 21% in the same quarter last year. By the end of FY24, the company posted a net profit of ₹326 crore, with a net margin of 19.43%.

BLS International has been on an acquisition spree recently. On September 13, the company signed a definitive agreement to acquire a 100% stake in Citizenship Invest (CI), a Dubai-based advisory firm specializing in fast-track investor programs for obtaining residence and citizenship in over 15 countries. Earlier, on September 11, BLS International announced that its subsidiary had acquired a 99% stake in BLS Solutions Pvt. Ltd. (Bangladesh). Additionally, on August 30, the company entered into a definitive share purchase agreement to acquire a 51% stake in SLW Media.

Ecos (India) Mobility and Hospitality Ltd (YTD Return: 9.4%)

In Q1FY25, the company at the consolidated level reported a revenue of ₹149 crore, up 13.98% YoY and a net profit of ₹14 crore, while the operating margin fell to 14% from 17% in the corresponding quarter last year.

At the end FY24 of the company reported a net profit of ₹63 crore, at an 11.5% net margin.

The travel and tourism sector in the country is poised for impressive growth, given its rich history, culture, vast geographical breadth, and expanding infrastructure. With ongoing government investments in tourism initiatives and the modernisation of infrastructure, this sector will cater to both domestic visitors and international tourists. In addition, the increasing middle class and inflation-adjusted disposable incomes are expected to drive domestic travel inward.

These positive developments not only hope to rejuvenate the Indian Travel and Tourism industry, but also propel it towards growth, contributing significantly both economically and globally.