Sailani Tours N Travels Limited

Consumer Cyclical — Travel Services · BSE

₹7.26+₹0.66 (+10.00%)

DalalBaazaar Score

47 / 100

🟡 Moderate

Verdict

NEUTRAL

Risk

Low

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

In simple words: The business is earning a fairly low return on the money invested in it, with modest growth. Thin profit margins are the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:45 pm

Understanding the Business

Company site ↗

The 60-second version of Sailani Tours N Travels Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Sailani Tours N Travels Limited provides travel and related services in India. It offers ticketing, hotels, domestic and international packages, MICE, forex, and visa and insurance services, as well as customized itineraries for popular and offbeat destinations.

IndustryTravel Services

SectorConsumer Cyclical

Employees6

Annual revenue₹21 Cr

How does it make money?

Turns over ₹21 Cr a year. Of every ₹100 of sales, about ₹1 reaches shareholders as profit, with ₹4 left at the operating level before interest, tax and depreciation. Each of its 6 employees supports ₹3.53 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹3.53 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.

Compared side by side in Peers ↓

What is its competitive advantage?Little sign of one

Returns on capital of 6.2% are at or below what the capital likely costs. That is the financial pattern of a business competing largely on price, where advantage has to come from execution rather than position.

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 -35% 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-35%

DalalBaazaar Score

47/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ Revenue has contracted at 5.3% a year
✗ Profit has declined at 17.9% a year

Quality vs. Valuation

Company Quality

38/ 100

Weak

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

Valuation

77/ 100

Cheap

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

Optically cheap, but the underlying business scores poorly. Cheap-and-weak is what a value trap looks like from the outside — the low price may be deserved.

Historical Valuation

Current P/E

14.0x

3Y Median

32.0x

40 monthly readings · mean 30.7x · range 17.7x–46.3x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 56% below its 3y median of 32.0x. 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 80% below the peer median of 69.2x.

vs. its own history

Cheap

32.0x median over 40 months · -56%

vs. sector peers

Cheap

69.2x median of 4 peers · -80%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

6.5x

PEG

8.73

What's Good / What's Bad

🟢 What's Going Well3

Cash flow has turned positive
Free cash flow moved from negative to positive over 3 years.
Very low debt
Debt/Equity of 0.29x 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 6.4% to 3.2% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 8.6% to 6.2% — often a sign of competition or overexpansion.

Red Flags

4 items require attention · 3 high · 1 watch

🔴Debt has risen sharplyFinancial
Total debt is up 219% over 3 years, from ₹1 Cr to ₹2 Cr.
🔴Receivables growing faster than salesFinancial
Receivables up 178% against revenue up -15% — sales are being booked faster than they are collected.
🔴Inventory building faster than salesFinancial
Inventory up 63% against revenue up -15% — stock may not be moving.
🟡Profit is decliningFinancial
Net profit is down 45% over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Priced below its own history
The stock trades 56% 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 80% 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 ₹0 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 178% 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.
Returns on shareholder capital are falling
ROE has dropped from 6.4% to 3.2%. 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.
Several serious flags at once
3 high-severity checks triggered. Individually each has an explanation; together they raise the chance that something structural is wrong rather than a one-off.

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

1EBITDA margin holds above 2%✓ 4.1%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Debt / EBITDA stays below 2x✗ 2.6x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
3Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.
4Free cash flow remains positive✓ ₹0 Cr
Profit that never becomes cash eventually stops being profit.
5ROCE stays above 8%✗ 6.2%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 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

6 good · 3 neutral · 2 weak

Market Cap

₹3 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

14.0x

Cheap

Cheap against the generic band

P/B Ratio

0.44x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹0.52

Profitable

Profitable on a per-share basis

ROE

3.2%

Weak

Weak capital efficiency

ROCE

6.2%

Weak

Low return on total capital employed

Debt/Equity

0.29x

Low

Conservative leverage

Revenue Growth (YoY)

11.5%

Healthy

Healthy top-line growth

Profit Growth (YoY)

1.6%

Modest

Slow profit growth

Dividend Yield

None

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

Free Cash Flow

₹0 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

ROA

2.7%

Weak

Assets generate little profit

Operating Margin

1.9%

Weak

Thin margins leave little room for error

Net Margin

1.1%

Weak

Very little revenue reaches the bottom line

Current Ratio

2.64

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

-0.70

Defensive

Steadier than the market

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

7.1 / 9.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

48.5

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹25 Cr	₹23 Cr	₹18 Cr	₹21 Cr	-5.3%
EBITDA	₹1 Cr	₹1 Cr	₹1 Cr	₹1 Cr	+1.9%
EBITDA Margin	3.3%	3.6%	4.8%	4.1%	—
PAT (Net Profit)	₹0 Cr	₹0 Cr	₹0 Cr	₹0 Cr	-17.9%
EPS	₹1.04	₹0.63	₹0.41	—	—
ROE	6.4%	4.1%	2.6%	3.2%	—
ROCE	8.6%	5.7%	4.8%	6.2%	—
Total Debt	₹1 Cr	₹1 Cr	₹2 Cr	₹2 Cr	+47.2%
Free Cash Flow	-₹2 Cr	-₹0 Cr	-₹1 Cr	₹0 Cr	—

🔴 Revenue has shrunk at 5.3% a year over 3 years.

🟡 EBITDA has been broadly flat over 3 years (1.9% a year).

🟡 EBITDA Margin has held roughly flat at 4.1% over 3 years.

🔴 PAT (Net Profit) has shrunk at 17.9% a year over 3 years.

🔴 ROE has fallen from 6.4% to 3.2% over 3 years (-3.2 pts).

🔴 ROCE has fallen from 8.6% to 6.2% over 3 years (-2.5 pts).

🔴 Total Debt has grown at 47.2% a year over 3 years.

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

Balance Sheet & Cash Flow — FY2026

Total Assets

₹11 Cr

Total Liabilities

₹3 Cr

Cash & Equivalents

₹0 Cr

Operating Cash Flow

₹0 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

85.6%

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

6 general

Sailani Tours N Travels Ltd. Financials – Balance Sheet, Profit & Loss, Cash Flow

Value Research, 30 Aug

Sailani Tours passes all resolutions at 7th AGM held on Sep 30

scanx.trade, 01 Oct

WATERWAYS LEISURE TOURISM LTD. Stock/Share price , NSE/BSE Forecast News and Live Quotes

Equitymaster, 03 Jul

Indian Stocks Open Higher as Nifty, Sensex Gain Amid Easing Oil Prices

Investing.com India, 16 Sept

Iron, steel stock Rhetan TMT retraces after inching close to 52-week high. Do you own?

Livemint, 27 Jul

Indian Stocks Open Lower as Oil Tops $100 and Rupee Weakens

Investing.com India, 11 Sept

Watch Items

Trading very close to its 52-week low — worth checking whether this reflects a temporary setback or a structural problem.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongFinancial Health · Valuation

MiddlingRisk

WeakBusiness Quality · Growth · Profitability

Points for each in the Score ↑

Cheap, but for a reason

The low price is the whole case here, and the business underneath scores poorly. Cheap-and-weak is what a value trap looks like from the outside — it needs a specific reason the numbers are about to improve, not just the observation that they are low. 3 high-severity red flags sit above this conclusion and should be read first.

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Interest cover stays above 3x; ROCE stays above 8% · see Key things to watch ↑