TBO Tek Limited

Consumer Cyclical — Travel Services · NSE

₹1,623.00−₹4.90 (−0.30%)

DalalBaazaar Score

57 / 100

🟡 Moderate

Verdict

CAUTION

Risk

Moderate

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, with both sales and profits growing well. Cash generation is currently the main factor to watch.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:49 pm

Understanding the Business

Company site ↗

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

What does this company do?

TBO Tek Limited operates travel distribution platforms in India and internationally.

IndustryTravel Services

SectorConsumer Cyclical

Employees1,511

Annual revenue₹2,512 Cr

How does it make money?

Turns over ₹2,512 Cr a year. Of every ₹100 of sales, about ₹10 reaches shareholders as profit, with ₹18 left at the operating level before interest, tax and depreciation. Each of its 1,511 employees supports ₹1.66 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹1.66 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 15.0% 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 is the outlook?

10 analysts covering the stock expect revenue to grow about 18.5% and earnings to grow about 38.5% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+18.5%

Est. earnings growth+38.5%

Analysts10

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 +156% while net margin moved -34% 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+156%

Margin effect-34%

DalalBaazaar Score

57/ 100

Moderate

Weighted across six categories. Every point is explained below.

✗ P/E of 66.0x is demanding — it needs sustained high growth to justify
• P/E is close to its own historical median of 71.5x
✗ P/B of 11.19x is a steep premium to book

Quality vs. Valuation

Company Quality

61/ 100

Average

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

Historical Valuation

Current P/E

66.0x

3Y Median

71.5x

31 monthly readings · mean 77.7x · range 49.2x–143.2x

Sector Median

69.2x

median of 4 sector peers

🟡Currently trading close to its 3y median of 71.5x — 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

71.5x median over 31 months · -8%

vs. sector peers

Fair

69.2x median of 4 peers · -5%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

38.0x

PEG

3.44

What's Good / What's Bad

🟢 What's Going Well1

Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention2

Return on equity is falling
ROE has dropped from 42.4% to 15.8% — each rupee of shareholder capital earns less than it did.
Return on capital is falling
ROCE has declined from 43.9% to 15.0% — often a sign of competition or overexpansion.

Red Flags

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 971% over 3 years, from ₹71 Cr to ₹756 Cr.
🔴Profit up while operating cash flow fallsFinancial
Reported profit rose but cash generated by operations declined — worth checking whether earnings are being supported by non-cash items or working capital.
🔴Receivables growing faster than salesFinancial
Receivables up 247% against revenue up 156% — sales are being booked faster than they are collected.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹88 Cr in the latest year.
🟡Margins are compressingFinancial
EBITDA margin is down 3.4 points over 3 years.

Investment Thesis

🟢 Bull CaseWhat could make this work?

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 21.3% to 17.9%. 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 247% against revenue up 156%. 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 42.4% to 15.8%. 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
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.
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

1Revenue growth stays above 28% a year✓ 36.7% CAGR
Latest reported year was 81.1%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 16%✓ 17.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✗ -₹88 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 1.7x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 12%✓ 15.0%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

7 / 12 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
✓ Analyst consensus isn't majority-sell
✗ Short-term technical trend isn't bearish

Price history

Quick Metrics

5 good · 3 neutral · 3 weak

Market Cap

₹17,331 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

66.0x

Expensive

Expensive — verify against sector peers

P/B Ratio

11.19x

Rich

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

EPS (TTM)

₹24.6

Profitable

Profitable on a per-share basis

ROE

15.8%

Strong

Strong capital efficiency

ROCE

15.0%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.49x

Low

Conservative leverage

Revenue Growth (YoY)

81.1%

Healthy

Healthy top-line growth

Profit Growth (YoY)

32.3%

Healthy

Profits growing at a healthy clip

Dividend Yield

None

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

Free Cash Flow

-₹88 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

32.8x

Improving

Below the trailing multiple — the street expects earnings to grow into the price

Operating Margin

11.9%

Average

Average margins

Net Margin

8.6%

Average

Average bottom-line conversion

Current Ratio

1.08

Adequate

Adequate, but no real cushion

Beta (vs Nifty)

0.64

Defensive

Steadier than the market

52W Range Position

81%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1674.9 / 1675.8

Bearish alignment (short < long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

38.2

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹983 Cr	₹1,281 Cr	₹1,614 Cr	₹2,512 Cr	+36.7%
EBITDA	₹209 Cr	₹288 Cr	₹357 Cr	₹450 Cr	+29.1%
EBITDA Margin	21.3%	22.5%	22.1%	17.9%	—
PAT (Net Profit)	₹144 Cr	₹202 Cr	₹230 Cr	₹244 Cr	+19.2%
EPS	₹13.28	₹18.62	₹21.48	₹22.76	+19.7%
ROE	42.4%	37.1%	19.2%	15.8%	—
ROCE	43.9%	29.7%	21.6%	15.0%	—
Total Debt	₹71 Cr	₹210 Cr	₹214 Cr	₹756 Cr	+120.4%
Free Cash Flow	₹230 Cr	₹188 Cr	₹236 Cr	-₹88 Cr	—

🟢 Revenue has grown at 36.7% a year over 3 years.

🟢 EBITDA has grown at 29.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 21.3% to 17.9% over 3 years (-3.4 pts).

🟢 PAT (Net Profit) has grown at 19.2% a year over 3 years.

🟢 EPS has grown at 19.7% a year over 3 years.

🔴 ROE has fallen from 42.4% to 15.8% over 3 years (-26.6 pts).

🔴 ROCE has fallen from 43.9% to 15.0% over 3 years (-28.9 pts).

🔴 Total Debt has grown at 120.4% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹230 Cr to -₹88 Cr.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹9,309 Cr

Total Liabilities

₹7,758 Cr

Cash & Equivalents

₹1,019 Cr

Operating Cash Flow

-₹21 Cr

Capex

-₹67 Cr

Shareholding (proxy)

Institutional Holding

29.2%

Insider Holding

67.7%

Analyst Consensus

Recommendations

13 Buy · 0 Hold · 0 Sell

Target Price (Mean)

₹1,956.92

+20.6% vs CMP

Target Range

₹1,720 – ₹2,200

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

3 mixed3 general

TBO Tek Well Positioned for North America's Luxury Travel Growth, Says Jefferies; Check Target Price

NDTV Profit, 19 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

Earnings Beat: TBO Tek Limited Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Simply Wall Street, 03 AugAnalyst view

🟡Mixed / dependsBroker commentary — an opinion about the price rather than new information about the business.

TBO Tek shares gain 3%; Nuvama initiates 'Buy' with Rs 2,200 target

The Economic Times, 01 OctPrice 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.

Stock to buy today: TBO Tek (₹1,509.70) – BUY

BusinessLine, 02 Jul

Motilal Oswal initiates coverage on TBO Tek with 'Buy', sees 28% upside

Business Standard, 25 Mar

Augusta TBO offloads 2% stake in TBO Tek for Rs 327 Cr

Entrackr, 13 Jul

Watch Items

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

DalalBaazaar Thesis

StrongGrowth

MiddlingBusiness Quality · Financial Health · Profitability · Risk

WeakValuation

Points for each in the Score ↑

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. 3 high-severity red flags sit above this conclusion and should be read first.

1 of 5 tripwires tripped — Free cash flow remains positive · see Key things to watch ↑