Naturewings Holidays Limited

Consumer Cyclical — Travel Services · BSE

₹68.00₹0.00 (0.00%)

DalalBaazaar Score

69 / 100

🟢 Good

Verdict

REASONABLE

Risk

Low

Driven by micro-cap size, which brings thin liquidity.

In simple words: Strong business and financial position, with modest growth. Nothing obvious stands out as stretched — the usual checks on business quality and management still apply.

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 Naturewings Holidays Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Naturewings Holidays Limited operates as a tour and travel company in India. The company offers curated and customized travel experiences and package tours across Bhutan, Sikkim, Darjeeling, North-East India, Nepal, and selected international destinations.

IndustryTravel Services

SectorConsumer Cyclical

Employees57

Annual revenue₹30 Cr

How does it make money?

Turns over ₹30 Cr a year. Of every ₹100 of sales, about ₹5 reaches shareholders as profit, with ₹7 left at the operating level before interest, tax and depreciation. Each of its 57 employees supports ₹53.1 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹53.1 lakh

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.

Compared side by side in Peers ↓

What is its competitive advantage?Some evidence

ROCE of 15.7% 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 ROE25.9%

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 +159% while net margin moved -8% 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+159%

Margin effect-8%

DalalBaazaar Score

69/ 100

Good

Weighted across six categories. Every point is explained below.

✓ ROCE of 15.7% is comfortably above a typical cost of capital
✗ ROCE has fallen by 36.8 points — returns are eroding
✗ EBITDA margin of 7.1% is thin — little cushion if costs rise
✗ Net margin of 5.1% is slim
• Revenue has compounded at 37.3% a year, which is the base these returns are earned on

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

85/ 100

Cheap

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

A good business currently available at an undemanding price — the combination this framework is built to look for.

Historical Valuation

Current P/E

14.3x

2Y Median

20.3x

27 monthly readings · mean 19.7x · range 14.9x–25.0x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 30% below its 2y median of 20.3x. Cheaper than its own history, which is worth a reason too: the market may be pricing in something the backward-looking numbers do not show.

🟢Against its sector it trades 79% below the peer median of 69.2x.

vs. its own history

Cheap

20.3x median over 27 months · -30%

vs. sector peers

Cheap

69.2x median of 4 peers · -79%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

7.6x

PEG

0.43

What's Good / What's Bad

🟢 What's Going Well4

Debt is being paid down
Total debt is down 86% over 3 years.
Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.07x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 42.3% to 12.1% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 52.5% to 15.7% — often a sign of competition or overexpansion.

Red Flags

2 items require attention · 1 high · 1 watch

🔴Receivables growing faster than salesFinancial
Receivables up 758% against revenue up 159% — sales are being booked faster than they are collected.
🟡Margins are compressingFinancial
EBITDA margin is down 2.5 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Deleveraging frees up earnings
Debt is down 86% over 3 years. Every rupee of interest not paid drops to the bottom line, so profit can grow even if revenue does not.
Priced below its own history
The stock trades 30% below its own median multiple. If the business performs as it has and simply re-rates back to normal, that gap is return on its own.
Cheaper than its peers
It trades 79% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
Self-funding with balance-sheet headroom
Positive free cash flow of ₹2 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?

Margins are being competed away
EBITDA margin has fallen from 9.6% to 7.1%. 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 758% against revenue up 159%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Returns on shareholder capital are falling
ROE has dropped from 42.3% to 12.1%. 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.
Size brings its own risk
Micro 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

1Revenue growth stays above 28% a year✓ 37.3% CAGR
Latest reported year was 39.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 5%✓ 7.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹2 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 13%✓ 15.7%
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

7 good · 4 neutral · 0 weak

Market Cap

₹24 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.3x

Cheap

Cheap against the generic band

P/B Ratio

1.89x

Fair

Moderate premium to the company's book value

EPS (TTM)

₹4.76

Profitable

Profitable on a per-share basis

ROE

14.1%

Moderate

Moderate capital efficiency

ROCE

15.7%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.07x

Low

Conservative leverage

Revenue Growth (YoY)

39.2%

Healthy

Healthy top-line growth

Profit Growth (YoY)

8.1%

Modest

Slow profit growth

Dividend Yield

2.35%

Healthy

Meaningful cash return while you hold the stock

Free Cash Flow

₹2 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

6.4%

Average

Average asset productivity

Operating Margin

0.1%

Weak

Thin margins leave little room for error

Net Margin

5.1%

Average

Average bottom-line conversion

Current Ratio

2.52

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.54

Defensive

Steadier than the market

52W Range Position

19%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

71.2 / 72.4

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

0.0

Oversold zone

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹12 Cr	₹22 Cr	₹21 Cr	₹30 Cr	+37.3%
EBITDA	₹1 Cr	₹2 Cr	₹2 Cr	₹2 Cr	+24.4%
EBITDA Margin	9.6%	7.5%	7.5%	7.1%	—
PAT (Net Profit)	₹1 Cr	₹1 Cr	₹1 Cr	₹2 Cr	+33.5%
EPS	₹2.06	₹3.54	₹3.96	—	—
ROE	42.3%	42.1%	11.8%	12.1%	—
ROCE	52.5%	55.9%	16.0%	15.7%	—
Total Debt	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-48.6%
Free Cash Flow	-₹0 Cr	₹0 Cr	-₹1 Cr	₹2 Cr	—

🟢 Revenue has grown at 37.3% a year over 3 years.

🟢 EBITDA has grown at 24.4% a year over 3 years.

🔴 EBITDA Margin has fallen from 9.6% to 7.1% over 3 years (-2.5 pts).

🟢 PAT (Net Profit) has grown at 33.5% a year over 3 years.

🔴 ROE has fallen from 42.3% to 12.1% over 3 years (-30.2 pts).

🔴 ROCE has fallen from 52.5% to 15.7% over 3 years (-36.8 pts).

🟢 Total Debt has shrunk at 48.6% a year over 3 years.

🟢 Free Cash Flow has turned positive, from -₹0 Cr to ₹2 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹18 Cr

Total Liabilities

₹6 Cr

Cash & Equivalents

₹8 Cr

Operating Cash Flow

₹2 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

81.3%

Corporate Actions

Dividend Rate

₹1.6

Ex-Dividend Date

24 Aug 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 positive4 general

Naturewings Holidays Limited Share Price - Live NHL Stock Price & Chart

Upstox, 25 Sept

Naturewings Holidays approves FY26 results, recommends ₹1.60 dividend

scanx.trade, 22 JulCapital return

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

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The Economic Times, 21 AugCapital return

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Watch Items

Cross-check against the company's latest quarterly filing / investor presentation before acting.
RSI is in oversold territory — could mean either a bargain or a stock still falling for good reason. Check the 'why' before assuming reversal.

DalalBaazaar Thesis

StrongFinancial Health · Growth · Valuation

MiddlingProfitability · Risk

WeakBusiness Quality

Points for each in the Score ↑

Attractive on both counts

A good business currently available at an undemanding price — the combination this framework exists to look for. The work left is qualitative: whether the advantage the numbers imply is one you can identify and expect to last. 1 high-severity red flag sits above this conclusion and should be read first.

All 5 tripwires holding · see Key things to watch ↑