Mach Travel Solutions Limited

Industrials — Specialty Business Services · BSE

₹218.00−₹6.95 (−3.09%)

DalalBaazaar Score

60 / 100

🟢 Good

Verdict

NEUTRAL

Risk

High

Driven by high debt relative to equity, micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with both sales and profits growing well. Debt is the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:00 pm

Understanding the Business

Company site ↗

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

What does this company do?

Mach Travel Solutions Limited provides corporate travel, events, and experiences management services in India.

IndustrySpecialty Business Services

SectorIndustrials

Annual revenue₹217 Cr

How does it make money?

Turns over ₹217 Cr a year. Of every ₹100 of sales, about ₹8 reaches shareholders as profit, with ₹11 left at the operating level before interest, tax and depreciation.

Who are its competitors?

The closest listed comparisons in its industry are LARSEN & TOUBRO LTD., SIEMENS LTD, ABB INDIA LIMITED. These are the companies its valuation and returns are measured against elsewhere in this report.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 17.4% is above what capital typically costs, which suggests some pricing power, though not yet the sustained, wide gap that marks a durable advantage.

Peer median ROE15.2%

What has been driving growth?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +54% while net margin moved +23% 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+54%

Margin effect+23%

DalalBaazaar Score

60/ 100

Good

Weighted across six categories. Every point is explained below.

✓ Beta of 0.56 — historically steadier than the index
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ High leverage magnifies any downturn in earnings
✗ Profits have swung sharply from year to year — earnings are hard to forecast

Quality vs. Valuation

Company Quality

65/ 100

Good

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

Valuation

58/ 100

Fair

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

21.6x

2Y Median

16.9x

27 monthly readings · mean 18.0x · range 10.7x–27.6x

Sector Median

88.8x

median of 3 sector peers

⚠️Current valuation is approximately 28% above its 2y median of 16.9x. Paying more than usual needs a reason — faster growth, a better balance sheet, or a re-rating you believe in.

🟢Against its sector it trades 76% below the peer median of 88.8x.

vs. its own history

Expensive

16.9x median over 27 months · +28%

vs. sector peers

Cheap

88.8x median of 3 peers · -76%

vs. generic bands

Fair

15x–35x

EV/EBITDA

18.6x

PEG

0.92

What's Good / What's Bad

🟢 What's Going Well4

Margins are improving
EBITDA margin is up from 7.9% to 10.7% over 3 years.
Debt is being paid down
Total debt is down 43% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 39.3% to 13.7% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 42.4% to 17.4% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 2 high

🔴High leverageFinancial
Debt/Equity of 4.55x — earnings must service borrowings before shareholders see anything.
🔴Receivables growing faster than salesFinancial
Receivables up 295% against revenue up 54% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 7.9% to 10.7%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Deleveraging frees up earnings
Debt is down 43% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Cheaper than its peers
It trades 76% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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?

Leverage amplifies any setback
Debt/Equity of 4.55x. Interest is payable whether or not the business has a good year.
Sales are being booked faster than collected
Receivables are up 295% against revenue up 54%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
The price already assumes success
The stock trades 28% above its own median multiple. At this level the business has to deliver just to stand still, and a stumble is repriced twice — lower earnings on a lower multiple.
Returns on shareholder capital are falling
ROE has dropped from 39.3% to 13.7%. 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.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.

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

1Revenue growth stays above 12% a year✓ 15.4% CAGR
Latest reported year was 538.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 9%✓ 10.7%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹7 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.2x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 14%✓ 17.4%
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 · 5 neutral · 1 weak

Market Cap

₹459 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

21.6x

Fair

Fairly valued against the generic band

P/B Ratio

3.78x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹10.08

Profitable

Profitable on a per-share basis

ROE

13.7%

Moderate

Moderate capital efficiency

ROCE

17.4%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

4.55x

High

High leverage

Revenue Growth (YoY)

538.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

300.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.23%

Modest

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

Free Cash Flow

₹7 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

Operating Margin

4.5%

Weak

Thin margins leave little room for error

Net Margin

5.8%

Average

Average bottom-line conversion

Current Ratio

2.58

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.56

Defensive

Steadier than the market

52W Range Position

80%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

198.0 / 178.6

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

60.9

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹141 Cr	₹237 Cr	₹236 Cr	₹217 Cr	+15.4%
EBITDA	₹11 Cr	₹37 Cr	₹21 Cr	₹23 Cr	+27.5%
EBITDA Margin	7.9%	15.4%	8.9%	10.7%	—
PAT (Net Profit)	₹9 Cr	₹26 Cr	₹14 Cr	₹17 Cr	+23.5%
EPS	₹4.19	₹12.45	₹7.07	₹7.89	+23.5%
ROE	39.3%	52.9%	13.0%	13.7%	—
ROCE	42.4%	64.7%	18.2%	17.4%	—
Total Debt	₹10 Cr	₹12 Cr	₹7 Cr	₹6 Cr	-17.3%
Free Cash Flow	-₹8 Cr	₹6 Cr	-₹11 Cr	₹7 Cr	—

🟢 Revenue has grown at 15.4% a year over 3 years.

🟢 EBITDA has grown at 27.5% a year over 3 years.

🟢 EBITDA Margin has risen from 7.9% to 10.7% over 3 years (+2.8 pts).

🟢 PAT (Net Profit) has grown at 23.5% a year over 3 years.

🟢 EPS has grown at 23.5% a year over 3 years.

🔴 ROE has fallen from 39.3% to 13.7% over 3 years (-25.7 pts).

🔴 ROCE has fallen from 42.4% to 17.4% over 3 years (-25.0 pts).

🟢 Total Debt has shrunk at 17.3% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹8 Cr to ₹7 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹183 Cr

Total Liabilities

₹60 Cr

Cash & Equivalents

₹32 Cr

Operating Cash Flow

₹8 Cr

Capex

-₹1 Cr

Shareholding (proxy)

Institutional Holding

4.8%

Insider Holding

83.6%

Corporate Actions

Dividend Rate

₹0.5

Ex-Dividend Date

04 Sept 2026

Peer Comparison

Company	P/E	ROE
LARSEN & TOUBRO LTD.	30.1x	15.2%
SIEMENS LTD	88.8x	10.5%
ABB INDIA LIMITED	92.6x	19.1%

Recent News

2 positive1 mixed3 general

Mach Travel Solutions Gets MP Tourism Empanelment; Shares Decline 1.8%

HDFC Sky, 15 OctPrice move

🟡Mixed / dependsA price move rather than a change in the business. If the figures on this page have not moved, the fall is either an opportunity or news they have yet to catch up with.

Mach Travel Solutions secures empanelment for 10,000-pilgrim yatra

scanx.trade, 15 Oct

Mach Travel Solutions Q1 FY27 Revenue Jumps 538% YoY to ₹144.33 Cr

PR Newswire, 12 AugResults

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

Mach Travel Solutions consolidated net profit rises 298.70% in the June 2026 quarter

Business Standard, 12 AugResults

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

Tour, travel stock under ₹200 jumps 7% despite weak trends in Indian stock market; here's why

Livemint, 13 Aug

Mach Travel Solutions Ltd. Share Price Live Today

CNBC TV18, 29 May

Watch Items

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

DalalBaazaar Thesis

StrongFinancial Health · Growth

MiddlingProfitability · Valuation

WeakBusiness Quality · Risk

Points for each in the Score ↑

Good business at a fair price

A sound business at a reasonable valuation. Suitable for a long-term holding, with the valuation and the direction of margins worth watching rather than the business itself. 2 high-severity red flags sit above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑