Travel Food Services Limited

Consumer Cyclical — Restaurants · NSE

₹1,196.90−₹3.10 (−0.26%)

DalalBaazaar Score

79 / 100

🟢 Good

Verdict

ATTRACTIVE

Risk

Low

Driven by small-cap size, which brings sharper price swings.

In simple words: Strong business and financial position, with both sales and profits growing well. Nothing on this snapshot stands out as an immediate concern — the usual checks on business quality and management still apply.

Decision support, not a buy or sell call.

As of 18 Oct 2026, 7:01 pm

Understanding the Business

Company site ↗

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

What does this company do?

Travel Food Services Limited, together with its subsidiaries, manages and operates travel quick service restaurant outlets and lounges in India and internationally.

IndustryRestaurants

SectorConsumer Cyclical

Employees4,394

Annual revenue₹1,648 Cr

How does it make money?

Turns over ₹1,648 Cr a year. Of every ₹100 of sales, about ₹27 reaches shareholders as profit, with ₹48 left at the operating level before interest, tax and depreciation. Each of its 4,394 employees supports ₹37.5 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹37.5 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?The numbers suggest a real one

ROCE has stayed above 15% in every year available and stands at 41.8%. Returns that high normally get competed away; when they persist, something is protecting them, and its ROE of 30.6% against a peer median of 25.9% is consistent with that. What that something is — brand, scale, switching costs, regulation — the accounts cannot tell you.

Peer median ROE25.9%

What is the outlook?

4 analysts covering the stock expect revenue to grow about 11.8% and earnings to grow about 14.3% in the year to 2028. These are estimates by people who follow the company, not a forecast for the wider industry.

Est. revenue growth+11.8%

Est. earnings growth+14.3%

Analysts4

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 +55% while net margin moved +17% 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+55%

Margin effect+17%

DalalBaazaar Score

79/ 100

Good

Weighted across six categories. Every point is explained below.

• P/E of 33.2x already prices in growth
✓ P/E is 27% below its own historical median of 45.4x — cheap by its own standards
✗ P/B of 10.93x is a steep premium to book

Quality vs. Valuation

Company Quality

87/ 100

Excellent

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

Valuation

64/ 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

33.2x

1.4Y Median

45.4x

17 monthly readings · mean 43.6x · range 35.8x–48.8x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 27% below its 1.4y median of 45.4x. 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 52% below the peer median of 69.2x.

vs. its own history

Cheap

45.4x median over 17 months · -27%

vs. sector peers

Cheap

69.2x median of 4 peers · -52%

vs. generic bands

Fair

15x–35x

EV/EBITDA

20.3x

PEG

1.52

What's Good / What's Bad

🟢 What's Going Well7

Margins are improving
EBITDA margin is up from 42.2% to 47.6% over 3 years.
Debt is being paid down
Total debt is down 36% over 3 years.
Cash generation is improving
Free cash flow is up 24% over 3 years.
Return on capital is rising
ROCE has improved from 37.9% to 41.8%.
High return on capital employed
ROCE of 41.8% is the mark of a business that converts capital into profit efficiently.
Very low debt
Debt/Equity of 0.17x leaves the balance sheet with plenty of headroom.
Consistently profitable
Profitable in every one of the last 4 reported years.

🔴 What Needs Attention1

Return on equity is falling
ROE has dropped from 37.2% to 30.6% — each rupee of shareholder capital earns less than it did.

Red Flags

2 items require attention · 2 high

🔴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 132% against revenue up 55% — sales are being booked faster than they are collected.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Capital compounds at a high rate
ROCE of 41.8% means each rupee reinvested earns well above what capital costs. If the company can keep deploying at this rate, growth creates value rather than just consuming cash.
Margin expansion has further to run
EBITDA margin has risen from 42.2% to 47.6%. 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 36% 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 27% 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 52% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.

🔴 Bear CaseWhat could go wrong?

Sales are being booked faster than collected
Receivables are up 132% against revenue up 55%. 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 37.2% to 30.6%. 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
2 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 12% a year✓ 15.6% CAGR
Latest reported year was 20.6%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 46%✓ 47.6%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Free cash flow remains positive✓ ₹354 Cr
Profit that never becomes cash eventually stops being profit.
4Debt / EBITDA stays below 2x✓ 0.3x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
5ROCE stays above 39%✓ 41.8%
Falling returns on capital are usually competition arriving, and show up here before they reach the margin.

Investment Checklist

11 / 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

7 good · 3 neutral · 1 weak

Market Cap

₹15,765 Cr

Small Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

33.2x

Fair

Fairly valued against the generic band

P/B Ratio

10.93x

Rich

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

EPS (TTM)

₹36.07

Profitable

Profitable on a per-share basis

ROE

30.6%

Strong

Strong capital efficiency

ROCE

41.8%

Strong

Earns comfortably above its likely cost of capital

Debt/Equity

0.17x

Low

Conservative leverage

Revenue Growth (YoY)

20.6%

Healthy

Healthy top-line growth

Profit Growth (YoY)

38.1%

Healthy

Profits growing at a healthy clip

Dividend Yield

0.86%

Modest

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

Free Cash Flow

₹354 Cr

Cash generative

Generates cash even after funding its capex

More Metrics

P/E (Forward)

28.2x

Improving

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

Operating Margin

26.6%

Good

Healthy core-business profitability

Net Margin

27.6%

Good

Strong bottom-line conversion

Current Ratio

1.91

Comfortable

Healthy short-term liquidity

52W Range Position

37%

Mid-range

Technical Snapshot

SMA 20 / SMA 50

1208.5 / 1271.1

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.4

Neutral momentum

Financial Trend (4-Year)

Metric	FY23	FY24	FY25	FY26	3Y CAGR
Revenue	₹1,066 Cr	₹1,395 Cr	₹1,688 Cr	₹1,648 Cr	+15.6%
EBITDA	₹450 Cr	₹530 Cr	₹644 Cr	₹785 Cr	+20.3%
EBITDA Margin	42.2%	38.0%	38.1%	47.6%	—
PAT (Net Profit)	₹244 Cr	₹288 Cr	₹363 Cr	₹441 Cr	+21.8%
EPS	₹18.52	₹21.85	₹27.58	₹33.42	+21.8%
ROE	37.2%	32.9%	34.5%	30.6%	—
ROCE	37.9%	35.7%	42.3%	41.8%	—
Total Debt	₹383 Cr	₹416 Cr	₹333 Cr	₹245 Cr	-13.9%
Free Cash Flow	₹284 Cr	₹274 Cr	₹453 Cr	₹354 Cr	+7.5%

🟢 Revenue has grown at 15.6% a year over 3 years.

🟢 EBITDA has grown at 20.3% a year over 3 years.

🟢 EBITDA Margin has risen from 42.2% to 47.6% over 3 years (+5.4 pts).

🟢 PAT (Net Profit) has grown at 21.8% a year over 3 years.

🟢 EPS has grown at 21.8% a year over 3 years.

🔴 ROE has fallen from 37.2% to 30.6% over 3 years (-6.6 pts).

🟢 ROCE has risen from 37.9% to 41.8% over 3 years (+3.9 pts).

🟢 Total Debt has shrunk at 13.9% a year over 3 years.

🟢 Free Cash Flow has grown at 7.5% a year over 3 years.

Balance Sheet & Cash Flow — FY2026

Total Assets

₹2,280 Cr

Total Liabilities

₹816 Cr

Cash & Equivalents

₹48 Cr

Operating Cash Flow

₹393 Cr

Capex

-₹39 Cr

Shareholding (proxy)

Institutional Holding

9.2%

Insider Holding

86.2%

Corporate Actions

Dividend Rate

₹10.25

Ex-Dividend Date

09 Sept 2026

Analyst Consensus

Recommendations

3 Buy · 0 Hold · 1 Sell

Target Price (Mean)

₹1,575.5

+31.6% vs CMP

Target Range

₹1,365 – ₹1,770

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

1 negative5 general

TRAVELFOOD Stock Price and Chart — NSE:TRAVELFOOD

TradingView, 27 Aug

Here's Why We Think Travel Food Services (NSE:TRAVELFOOD) Might Deserve Your Attention Today

Simply Wall Street, 04 Aug

Travel Food Services Share: Bull Case vs Bear Case for 2026

Univest, 28 Sept

Travel Food Services Ltd Peer Comparison – Compare with Others

Value Research, 28 Aug

Buy Travel Food Services; target of Rs 1600: ICICI Securities

Moneycontrol.com, 17 Aug

Travel Food Services Ltd Downgraded to Sell Amid Technical and Valuation Concerns

MarketsMojo, 02 OctAnalyst view

🔴Potentially negativeAn analyst opinion changing, which moves the price without changing the business.

Watch Items

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

DalalBaazaar Thesis

StrongBusiness Quality · Financial Health · Growth · Profitability

MiddlingValuation · 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 ↑