Waterways Leisure Tourism Limited

Industrials — Marine Shipping · NSE

₹97.60+₹0.98 (+1.01%)

DalalBaazaar Score

51 / 100

🟡 Moderate

Verdict

CAUTION

Risk

High

Driven by negative free cash flow, small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 6:09 pm

Caution warranted. Multiple fundamental metrics — flagged in red below — point to either valuation stretch, leverage risk, or weakening profitability. This doesn't mean avoid the stock outright, but it does mean the burden of proof is on the growth story to justify the current price.

Understanding the Business

Company site ↗

The 60-second version of Waterways Leisure Tourism Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Waterways Leisure Tourism Limited operates a domestic ocean cruise vessel in India.

IndustryMarine Shipping

SectorIndustrials

Employees245

Annual revenue₹579 Cr

How does it make money?

Turns over ₹579 Cr a year. Of every ₹100 of sales, about ₹9 reaches shareholders as profit, with ₹20 left at the operating level before interest, tax and depreciation. Each of its 245 employees supports ₹2.37 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin20.2%

Net margin9.0%

Revenue / employee₹2.37 Cr

Who are its competitors?

The closest listed comparisons in its industry are ADANI PORT & SEZ LTD, LARSEN & TOUBRO LTD.. These are the companies its valuation and returns are measured against elsewhere in this report.

ADANI PORT & SEZ LTDP/E 29.9x · ROE 14.1%

LARSEN & TOUBRO LTD.P/E 30.1x · ROE 15.2%

What is its competitive advantage?Some evidence

ROCE of 59.8% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

ROCE59.8%

ROE65.0%

Peer median ROE15.2%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +20% while net margin moved -22% relative to itself. What this cannot tell you is which products, customers or geographies did the work — that lives in the segment disclosures of the annual report.

Revenue effect+20%

Margin effect-22%

DalalBaazaar Score

51/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 62.6x is demanding — it needs sustained high growth to justify
✗ P/B of 9.23x is a steep premium to book

Quality vs. Valuation

Company Quality

59/ 100

Average

How good the business is, ignoring the share price entirely.

Valuation

24/ 100

Expensive

What you are being asked to pay, ignoring how good the business is.

A reasonable business at a reasonable price — neither the quality nor the valuation stands out in either direction.

Historical Valuation

Current P/E

62.6x

Sector Median

30.0x

median of 2 sector peers

⚠️Against its sector it trades 109% above the peer median of 30.0x.

vs. its own history

Not enough price and earnings history

vs. sector peers

Expensive

30.0x median of 2 peers · +109%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

62.6x

P/B

9.23x

EV/EBITDA

61.5x

PEG

—

Dividend Yield

None

What's Good / What's Bad

🟢 What's Going Well2

Debt is being paid down
Total debt is down 21% over 3 years.
High return on capital employed
ROCE of 59.8% is the mark of a business that converts capital into profit efficiently.

🔴 What Needs Attention5

Margins are compressing
EBITDA margin has slipped from 30.0% to 20.2% over 3 years.
Free cash flow is negative
The business is not currently covering its capital spending from operations.
Return on equity is falling
ROE has dropped from 1067.6% to 65.0% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 1023.7% to 59.8% — often a sign of competition or overexpansion.
Receivables growing faster than sales
Receivables are up 101% against revenue growth of 20% — customers are taking longer to pay.

Red Flags

3 items require attention · 2 high · 1 watch

🔴Significant margin compressionFinancial
EBITDA margin has fallen 9.9 points, from 30.0% to 20.2%.
🔴Receivables growing faster than salesFinancial
Receivables up 101% against revenue up 20% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹111 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 59.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Deleveraging frees up earnings
Debt is down 21% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.

🔴 Bear CaseWhat could go wrong?

Margins are being competed away
EBITDA margin has fallen from 30.0% to 20.2%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
Sales are being booked faster than collected
Receivables are up 101% against revenue up 20%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
A premium to the sector to defend
It trades 109% above the peer median. That premium needs a reason that persists, or it closes.
Growth barely outpaces inflation
Revenue compounding at 6.3% a year is close to the rate prices rise, so the business is gaining little ground in real terms. That leaves the share price dependent on a re-rating rather than on earnings growth.
Returns on shareholder capital are falling
ROE has dropped from 1067.6% to 65.0%. Each rupee of equity earns less than it did, so profit growth increasingly depends on raising more capital rather than on the existing base working harder.

🟡 Key Things to WatchMeasurable tripwires, set against where this company stands today

1EBITDA margin holds above 18%✓ 20.2%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Free cash flow remains positive✗ -₹111 Cr
Profit that never becomes cash eventually stops being profit.
3Revenue growth stays above 5% a year✓ 6.3% CAGR
Latest reported year was 30.9%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Debt / EBITDA stays below 2x✓ 1.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 57%✓ 59.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

8 / 11 checks passed

✓ Strong return on equity (ROE ≥ 15%)
✓ Strong return on capital employed (ROCE ≥ 15%)
✓ Healthy net margin (≥ 10%)
✗ Generates positive free cash flow
✓ Manageable leverage (Debt/Equity < 1.0)
✓ Adequate short-term liquidity (Current Ratio ≥ 1.0)
✓ Revenue growing year-over-year
✗ Profit growing year-over-year
✗ Not trading at an extreme valuation (P/E < 40x)
✓ Not buying right at the 52-week high
✓ Short-term technical trend isn't bearish

Price history

Quick Metrics

4 good · 3 neutral · 4 weak

Market Cap

₹7,066 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

62.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

9.23x

Rich

Steep premium to book — needs high, durable returns to justify

EPS (TTM)

₹1.56

Profitable

Profitable on a per-share basis

ROE

65.0%

Strong

Strong capital efficiency

ROCE

59.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.61x

Moderate

Moderate leverage

Revenue Growth (YoY)

30.9%

Healthy

Healthy top-line growth

Profit Growth (YoY)

-69.0%

Falling

Profits are shrinking

Dividend Yield

None

No dividend yield reported — usually means no payout, but verify if one was recently initiated

Free Cash Flow

-₹111 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

CMP

₹97.6

Operating Margin

13.8%

Average

Average margins

Net Margin

17.2%

Good

Strong bottom-line conversion

Current Ratio

1.10

Adequate

Adequate, but no real cushion

52W Range Position

63%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

104.7 / 100.6

Bullish alignment (short > long)

RSI (14)

39.0

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹482 Cr	₹441 Cr	₹590 Cr	₹579 Cr	+6.3%
EBITDA	₹145 Cr	₹111 Cr	₹216 Cr	₹117 Cr	-6.9%
EBITDA Margin	30.0%	25.2%	36.6%	20.2%	—
PAT (Net Profit)	₹55 Cr	-₹123 Cr	₹168 Cr	₹52 Cr	-1.9%
EPS	₹7.64	₹-16.95	₹23.23	—	—
ROE	1067.6%	—	509.9%	65.0%	—
ROCE	1023.7%	-70.1%	423.8%	59.8%	—
Total Debt	₹150 Cr	₹293 Cr	₹56 Cr	₹118 Cr	-7.7%
Free Cash Flow	₹181 Cr	₹157 Cr	₹114 Cr	-₹111 Cr	—

🟢 Revenue has grown at 6.3% a year over 3 years.

🔴 EBITDA has shrunk at 6.9% a year over 3 years.

🔴 EBITDA Margin has fallen from 30.0% to 20.2% over 3 years (-9.9 pts).

🟡 PAT (Net Profit) has been broadly flat over 3 years (-1.9% a year).

🔴 ROE has fallen from 1067.6% to 65.0% over 3 years (-1002.6 pts).

🔴 ROCE has fallen from 1023.7% to 59.8% over 3 years (-963.9 pts).

🟢 Total Debt has shrunk at 7.7% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹181 Cr to -₹111 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹342 Cr

Total Liabilities

₹262 Cr

Total Debt

₹118 Cr

Cash & Equivalents

₹5 Cr

Operating Cash Flow

-₹96 Cr

Capex

-₹14 Cr

Shareholding (proxy)

Institutional Holding

0.3%

Insider Holding

89.3%

Peer Comparison

Company	P/E	ROE
ADANI PORT & SEZ LTD	29.9x	14.1%
LARSEN & TOUBRO LTD.	30.1x	15.2%

Recent News

2 positive4 general

Waterways Leisure Tourism Ltd. Share Price Live Today

CNBC TV18, 16 Oct

Cordelia Cruises Operator Bets On World's Biggest Wedding Market As Season Kicks In

NDTV Profit, 18 Oct

Waterways Leisure Tourism Q2FY27 Results: Revenue up 31%, EBITDA margin 58.45%

scanx.trade, 15 OctResults

🟢Potentially positiveReported improvement. Check whether it came from volume, price or a one-off item before treating it as a trend.

1:10 stock split follows strong Q2 results; newly listed stock up 6% | Rises 32% over IPO price in 3 months; what next?

Livemint, 12 OctCapital return

🟢Potentially positiveCash or shares returned to holders. A buyback is only good value if the shares were cheap when bought.

Waterways Leisure Tourism ’s IPO: Price Band Set At Rs769 To Rs808

https://www.fintechbiznews.com/, 12 Oct

Waterways Leisure Tourism IPO Lists at Discount; Cordelia Cruises Operator Slides Over 21% on NSE Debut

India Infoline, 01 Jul

Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

🟢Business QualityStrong15.2/20

🟢Financial HealthStrong13/20

🔴GrowthWeak5.7/20

🟢ProfitabilityStrong10.4/15

🔴ValuationDemanding3.2/15

🔴RiskHigh3.1/10

Unremarkable in both directions

A reasonable business at a reasonable price. Nothing here is alarming and nothing is compelling, which usually means the decision rests on things this data cannot see — the industry's direction, management's intent, and what else is available to you. 2 high-severity red flags sit above this conclusion and should be read first.

This thesis breaks if

✓EBITDA margin holds above 18%20.2%
✗Free cash flow remains positive-₹111 Cr
✓Revenue growth stays above 5% a year6.3% CAGR
✓Debt / EBITDA stays below 2x1.0x
✓ROCE stays above 57%59.8%