India Tourism Development Corporation Limited

Consumer Cyclical — Lodging · NSE

₹668.00−₹0.75 (−0.11%)

DalalBaazaar Score

70 / 100

🟢 Good

Verdict

NEUTRAL

Risk

Low

Driven by small-cap size, which brings sharper price swings, a very high earnings multiple, which leaves little margin for disappointment, falling profits.

In simple words: Strong business and financial position, though profits are falling even as sales grow. Valuation 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 India Tourism Development Corporation Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

India Tourism Development Corporation Limited, together with its subsidiaries, operates in the travel, tourism, and hospitality industry in India. The company produces, distributes, and sells tourist publicity literature; and manages catering services.

IndustryLodging

SectorConsumer Cyclical

Employees426

Annual revenue₹528 Cr

How does it make money?

Turns over ₹528 Cr a year. Of every ₹100 of sales, about ₹16 reaches shareholders as profit, with ₹22 left at the operating level before interest, tax and depreciation. Each of its 426 employees supports ₹1.24 Cr of revenue a year, the signature of a capital- or asset-led business.

EBITDA margin22.4%

Net margin15.7%

Revenue / employee₹1.24 Cr

Who are its competitors?

The closest listed comparisons in its industry are MARUTI SUZUKI INDIA LTD., TITAN COMPANY LIMITED, TRENT LTD, AVENUE SUPERMARTS LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

MARUTI SUZUKI INDIA LTD.P/E 25.2x · ROE 13.4%

TITAN COMPANY LIMITEDP/E 68.5x · ROE 36.7%

TRENT LTDP/E 87.2x · ROE 25.9%

AVENUE SUPERMARTS LIMITEDP/E 69.9x · ROE 12.7%

What is its competitive advantage?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 26.6%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 19.6% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

ROCE26.6%

ROE19.6%

Peer median ROE25.9%

What has been driving growth?

Profit has moved mainly because margins changed, not because the business sold much more. Over 3 years revenue moved +15% while net margin moved +31% 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+15%

Margin effect+31%

DalalBaazaar Score

70/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 69.5x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 71.6x
✗ P/B of 13.55x is a steep premium to book

Quality vs. Valuation

Company Quality

78/ 100

Good

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

Valuation

40/ 100

Expensive

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

A good business, but the price already reflects that. The quality is real; the question is whether you are overpaying for it today.

Historical Valuation

Current P/E

69.5x

3Y Median

71.6x

40 monthly readings · mean 77.1x · range 39.9x–129.3x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 71.6x — the market is paying about what it usually pays for this company.

🟡Against its sector it is priced broadly in line with the peer median of 69.2x.

vs. its own history

Fair

71.6x median over 40 months · -3%

vs. sector peers

Fair

69.2x median of 4 peers · +0%

vs. generic bands

Expensive

Above 35x

P/E (Trailing)

69.5x

P/B

13.55x

EV/EBITDA

48.0x

PEG

4.80

Dividend Yield

0.44%

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 19.0% to 22.4% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Return on equity is rising
ROE has improved from 16.3% to 19.6%.
Return on capital is rising
ROCE has improved from 20.9% to 26.6%.
High return on capital employed
ROCE of 26.6% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.15x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Receivables growing faster than sales
Receivables are up 41% against revenue growth of 15% — customers are taking longer to pay.
Inventory building faster than sales
Inventory is up 73% against revenue growth of 15% — stock may not be moving.

Red Flags

2 items require attention · 2 watch

🟡Receivables growing faster than salesFinancial
Receivables up 41% against revenue up 15% — sales are being booked faster than they are collected.
🟡Inventory building faster than salesFinancial
Inventory up 73% against revenue up 15% — stock may not be moving.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 26.6% 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.
Margin expansion has further to run
EBITDA margin has risen from 19.0% to 22.4%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹60 Cr alongside low debt means growth, buybacks or dividends need no outside money — and a downturn can be absorbed rather than refinanced.
Earnings have proved durable
Profitable in every one of the last 4 reported years. Consistency lowers the risk that any single bad year is structural rather than cyclical.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 41% against revenue up 15%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Growth barely outpaces inflation
Revenue compounding at 4.6% 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.
Size brings its own risk
Small Cap businesses are thinly traded, so exits are harder in a falling market and single events move the price more than they would for a larger company.

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

1EBITDA margin holds above 20%✓ 22.4%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Revenue growth stays above 4% a year✓ 4.6% CAGR
Latest reported year was 2.7%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
3Free cash flow remains positive✓ ₹60 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.0x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 24%✓ 26.6%
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

5 good · 3 neutral · 3 weak

Market Cap

₹5,729 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

69.5x

Expensive

Expensive — verify against sector peers

P/B Ratio

13.55x

Rich

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

EPS (TTM)

₹9.61

Profitable

Profitable on a per-share basis

ROE

19.6%

Strong

Strong capital efficiency

ROCE

26.6%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.15x

Low

Conservative leverage

Revenue Growth (YoY)

2.7%

Modest

Modest growth

Profit Growth (YoY)

-4.4%

Falling

Profits are shrinking

Dividend Yield

0.44%

Modest

Small cash return — most of the return has to come from the price

Free Cash Flow

₹60 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

CMP

₹668

Operating Margin

7.5%

Average

Average margins

Net Margin

15.4%

Good

Strong bottom-line conversion

Current Ratio

1.93

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.75

Defensive

Steadier than the market

52W Range Position

66%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

671.6 / 671.9

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

46.3

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹461 Cr	₹504 Cr	₹561 Cr	₹528 Cr	+4.6%
EBITDA	₹87 Cr	₹109 Cr	₹105 Cr	₹118 Cr	+10.6%
EBITDA Margin	19.0%	21.7%	18.7%	22.4%	—
PAT (Net Profit)	₹55 Cr	₹65 Cr	₹82 Cr	₹83 Cr	+14.5%
EPS	₹6.43	₹7.47	₹9.29	₹9.6	+14.3%
ROE	16.3%	21.1%	22.5%	19.6%	—
ROCE	20.9%	32.1%	26.1%	26.6%	—
Total Debt	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+0.3%
Free Cash Flow	-₹25 Cr	-₹5 Cr	₹43 Cr	₹60 Cr	—

🟢 Revenue has grown at 4.6% a year over 3 years.

🟢 EBITDA has grown at 10.6% a year over 3 years.

🟢 EBITDA Margin has risen from 19.0% to 22.4% over 3 years (+3.4 pts).

🟢 PAT (Net Profit) has grown at 14.5% a year over 3 years.

🟢 EPS has grown at 14.3% a year over 3 years.

🟢 ROE has risen from 16.3% to 19.6% over 3 years (+3.3 pts).

🟢 ROCE has risen from 20.9% to 26.6% over 3 years (+5.7 pts).

🟡 Total Debt has been broadly flat over 3 years (0.3% a year).

🟢 Free Cash Flow has turned positive, from -₹25 Cr to ₹60 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹762 Cr

Total Liabilities

₹351 Cr

Total Debt

₹1 Cr

Cash & Equivalents

₹55 Cr

Operating Cash Flow

₹70 Cr

Capex

-₹10 Cr

Shareholding (proxy)

Institutional Holding

1.8%

Insider Holding

94.9%

Corporate Actions

Dividend Rate

₹2.95

Ex-Dividend Date

15 Sept 2026

Peer Comparison

Company	P/E	ROE
MARUTI SUZUKI INDIA LTD.	25.2x	13.4%
TITAN COMPANY LIMITED	68.5x	36.7%
TRENT LTD	87.2x	25.9%
AVENUE SUPERMARTS LIMITED	69.9x	12.7%

Recent News

2 positive2 mixed2 general

ITDC Share Price Rising Today: 8.26% Gain

Univest, 30 Sept

India Tourism Development Corporation Limited (NSE:ITDC) Looks Like A Good Stock, And It's Going Ex-Dividend Soon

Simply Wall Street, 11 SeptCapital return

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

ITDC zooms 34% in two days, stock hits 52-week high on heavy volumes

Business Standard, 08 Jul

ITDC Shares Rally 34% in Two Days, Hit Fresh 52-Week High on Tourism Growth Optimism

India Infoline, 08 JulPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

ITDC Share Price Rises 9.02%: Price, Valuation View

Univest, 22 SeptPrice move

🟡Mixed / dependsA price move, which is not by itself a change in the business. Worth finding the cause before reading it as either good or bad.

ITDC declares ₹2.95 per share final dividend for FY26

scanx.trade, 29 AugCapital return

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

Watch Items

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

DalalBaazaar Thesis

🟢Business QualityStrong17.9/20

🟢Financial HealthStrong17.8/20

🟡GrowthModest10.4/20

🟢ProfitabilityStrong12/15

🔴ValuationDemanding5.3/15

🟢RiskLow6.7/10

Good business, demanding price

The quality is real and the price already reflects it. Buying here is a bet that the business keeps compounding for long enough to grow into the multiple — which good businesses often do, but it removes the margin for error that a lower price would have given you.

This thesis breaks if

✓EBITDA margin holds above 20%22.4%
✓Revenue growth stays above 4% a year4.6% CAGR
✓Free cash flow remains positive₹60 Cr
✓Debt / EBITDA stays below 2x0.0x
✓ROCE stays above 24%26.6%