Tata Group’s lesser-known stock, Benares Hotels Ltd, has taken the market by storm in 2025. The stock has recorded an extraordinary 50% surge in just two months, outperforming all other Tata Group companies and hitting an all-time high of ₹12,299.90 on February 20, 2025.
Key Highlights
- Stock Performance: Gained 7% in a single day, reaching its highest-ever valuation.
- Market Capitalization: Now stands at ₹1,590 crore.
- Profit Growth: Net profit for FY 2024 increased by 54%, reaching ₹36 crore.
- Revenue Growth: Annual revenue climbed 29% year-over-year.
- Tata Group Standing: Among all Tata Group stocks, only Benares Hotels Ltd and Tata Consumer Products Ltd have given positive returns in 2025.
What’s Driving the Rally?
- Tourism Boom: Increased domestic and international travel to pilgrimage destinations like Varanasi, Prayagraj, and Ayodhya has driven demand for premium hospitality services.
- Mahakumbh Impact: A significant rise in tourist footfall during Mahakumbh Mela has fueled hotel bookings and revenue.
- Limited Competition: Being a niche player, Benares Hotels has benefited from a lack of high-end competition in the region.
Comparison with Other Tata Stocks
| Stock | 2025 Performance |
|---|---|
| Benares Hotels Ltd | +50% |
| Tata Consumer | +11% |
| Tata Consultancy | -6.5% |
| Tata Motors | -7% |
| Tata Power | -10% |
Future Outlook
With the continued demand for hospitality in pilgrimage cities and ongoing government initiatives promoting tourism, Benares Hotels Ltd is well-positioned for sustainable growth. However, investors should remain cautious and monitor further trends in the hospitality sector.
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