Tourism Finance Corporation of India Limited

Financial Services — Credit Services · NSE

₹155.26−₹2.56 (−1.62%)

DalalBaazaar Score

61 / 100

🟢 Good

Verdict

CAUTION

Risk

Moderate

Driven by negative free cash flow, small-cap size, which brings sharper price swings.

In simple words: Reasonable but unspectacular business quality, 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, 7:46 pm

Understanding the Business

Company site ↗

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

What does this company do?

Tourism Finance Corporation of India Limited, a financing institution, engages in the provision of financial assistance services in India.

IndustryCredit Services

SectorFinancial Services

Employees46

Annual revenue₹270 Cr

How does it make money?

Turns over ₹270 Cr a year. Of every ₹100 of sales, about ₹46 reaches shareholders as profit, with ₹67 left at the operating level before interest, tax and depreciation. Each of its 46 employees supports ₹5.87 Cr of revenue a year, the signature of a capital- or asset-led business.

Revenue / employee₹5.87 Cr

Who are its competitors?

The closest listed comparisons in its industry are BAJAJ FINANCE LIMITED, STATE BANK OF INDIA, HDFC BANK LTD, ICICI BANK LTD.. 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?Not assessable from these ratios

For a lender, returns on capital are shaped by leverage and funding cost rather than by pricing power, so the usual financial signature of an advantage does not apply. Judge this one on deposit franchise, cost of funds and asset quality — none of which are in this data.

Peer median ROE16.5%

What has been driving growth?

Sales and margins have both contributed to where profit is now. Over 3 years revenue moved +19% while net margin moved +18% 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+19%

Margin effect+18%

DalalBaazaar Score

61/ 100

Good

Weighted across six categories. Every point is explained below.

✗ P/E of 46.6x is demanding — it needs sustained high growth to justify
✗ P/E is 107% above its own historical median of 22.6x — expensive by its own standards
✗ P/B of 5.48x is a steep premium to book

Quality vs. Valuation

Company Quality

69/ 100

Good

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

Valuation

23/ 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

46.6x

3Y Median

22.6x

40 monthly readings · mean 25.6x · range 10.3x–58.3x

Sector Median

17.0x

median of 4 sector peers

⚠️Current valuation is approximately 107% above its 3y median of 22.6x. 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 174% above the peer median of 17.0x.

vs. its own history

Expensive

22.6x median over 40 months · +107%

vs. sector peers

Expensive

17.0x median of 4 peers · +174%

vs. generic bands

Expensive

Above 35x

EV/EBITDA

45.2x

PEG

3.90

What's Good / What's Bad

🟢 What's Going Well1

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

🔴 What Needs Attention0

Nothing stands out as clearly deteriorating on the years of data available.

Red Flags

1 item require attention · 1 watch

🟡Margins are compressingFinancial
EBITDA margin is down 3.9 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 71.2% to 67.3%. If the trend continues, profit falls even on flat sales — and margin decline rarely reverses quickly.
The price already assumes success
The stock trades 107% 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.
Growth barely outpaces inflation
Revenue compounding at 6.1% 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 65%✓ 67.3%
Two points below today's level — enough room for noise, tight enough to catch real compression.
2Return on equity stays above 8%✓ 9.4%
For a lender this is the cleanest single read on whether the book is being grown profitably.
3Revenue growth stays above 5% a year✓ 6.1% CAGR
Latest reported year was 98.3%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
4Interest cover stays above 4x✓ 7.1x
How much operating profit can fall before interest stops being comfortably covered.
5Valuation vs its own median of 22.6x✗ 46.6x today
A re-rating above its own history needs a reason; without one it is just a higher price.

Investment Checklist

6 / 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

3 good · 5 neutral · 3 weak

Market Cap

₹7,188 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

46.6x

Expensive

Expensive — verify against sector peers

P/B Ratio

5.48x

Rich

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

EPS (TTM)

₹3.33

Profitable

Profitable on a per-share basis

ROE

9.4%

Moderate

Moderate capital efficiency

ROCE

8.5%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.82x

Moderate

Moderate leverage

Revenue Growth (YoY)

98.3%

Healthy

Healthy top-line growth

Profit Growth (YoY)

100.0%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.39%

Modest

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

Free Cash Flow

-₹46 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

P/E (Forward)

13.3x

Improving

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

Operating Margin

89.2%

Good

Healthy core-business profitability

Net Margin

67.8%

Good

Strong bottom-line conversion

Current Ratio

2.26

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

0.12

Defensive

Steadier than the market

52W Range Position

94%

Near high

Near its 52-week high

Technical Snapshot

SMA 20 / SMA 50

145.7 / 137.8

Bullish alignment (short > long)

Price vs SMA 200

Above

Long-term uptrend

RSI (14)

68.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹226 Cr	₹226 Cr	₹244 Cr	₹270 Cr	+6.1%
EBITDA	₹161 Cr	₹150 Cr	₹161 Cr	₹182 Cr	+4.1%
EBITDA Margin	71.2%	66.6%	65.8%	67.3%	—
PAT (Net Profit)	₹88 Cr	₹91 Cr	₹104 Cr	₹123 Cr	+12.0%
EPS	₹1.95	₹2.02	₹2.24	₹2.67	+11.1%
ROE	8.6%	8.4%	8.5%	9.4%	—
ROCE	8.7%	7.7%	8.4%	8.5%	—
Total Debt	₹999 Cr	₹978 Cr	₹862 Cr	₹1,078 Cr	+2.6%
Free Cash Flow	-₹137 Cr	-₹7 Cr	₹55 Cr	-₹46 Cr	—

🟢 Revenue has grown at 6.1% a year over 3 years.

🟢 EBITDA has grown at 4.1% a year over 3 years.

🔴 EBITDA Margin has fallen from 71.2% to 67.3% over 3 years (-3.9 pts).

🟢 PAT (Net Profit) has grown at 12.0% a year over 3 years.

🟢 EPS has grown at 11.1% a year over 3 years.

🟡 ROE has held roughly flat at 9.4% over 3 years.

🟡 ROCE has held roughly flat at 8.5% over 3 years.

🔴 Total Debt has grown at 2.6% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,412 Cr

Total Liabilities

₹1,097 Cr

Cash & Equivalents

₹51 Cr

Operating Cash Flow

-₹46 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

5.5%

Insider Holding

36.6%

Corporate Actions

Dividend Rate

₹0.6

Ex-Dividend Date

14 Aug 2026

Peer Comparison

Company	P/E	ROE
BAJAJ FINANCE LIMITED	30.2x	17.8%
STATE BANK OF INDIA	10.3x	15.2%
HDFC BANK LTD	15.9x	13.8%
ICICI BANK LTD.	18.1x	16.5%

Recent News

6 general

TFCILTD 52 Week High Streak After Second Straight Session

Univest, 13 Oct

Tourism (TFCILTD.NS) Leaps +4.56% as Positive Sentiment Builds 2026-10-13 - Runaway Gap

https://www.siam.in/, 13 Oct

Here's Why We Think Tourism Finance Corporation of India (NSE:TFCILTD) Is Well Worth Watching

Simply Wall Street, 16 Jul

Tourism Finance Corporation of India Ltd is Rated Hold

MarketsMojo, 11 Oct

Tourism Finance Corp shareholders approve all six AGM resolutions

scanx.trade, 21 Aug

TFCILTD Consecutive 52 Week High: What the Streak Shows

Univest, 08 Oct

Watch Items

Trading very close to its 52-week high — momentum-driven entries here carry more mean-reversion risk.
This is a financial-sector business: borrowing is its raw material, not leverage in the usual sense. Debt/Equity and ROCE here aren't comparable to a manufacturer's — read them alongside NIM, GNPA and capital adequacy from the company's own disclosures.
Cross-check against the company's latest quarterly filing / investor presentation before acting.

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health

MiddlingGrowth · Profitability · Risk

WeakValuation

Points for each in the Score ↑

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.

1 of 5 tripwires tripped — Valuation vs its own median of 22.6x · see Key things to watch ↑