Travels & Rentals Limited

Consumer Cyclical — Travel Services · BSE

₹7.75₹0.00 (0.00%)

DalalBaazaar Score

67 / 100

🟢 Good

Verdict

REASONABLE

Risk

High

Driven by negative free cash flow, micro-cap size, which brings thin liquidity, a beta above 1.3, so it swings harder than the index.

In simple words: Reasonable but unspectacular business quality, but sales are shrinking. 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 Travels & Rentals Limited — what it does, how it earns, and who it competes with, before any of the numbers below.

What does this company do?

Travels & Rentals Limited operates as a travel agency in India. The company offers air and rail ticketing, bus ticketing, hotel room sales and packages, car, and other travel related services.

IndustryTravel Services

SectorConsumer Cyclical

Employees50

Annual revenue₹11 Cr

How does it make money?

Turns over ₹11 Cr a year. Of every ₹100 of sales, about ₹28 reaches shareholders as profit, with ₹60 left at the operating level before interest, tax and depreciation. Each of its 50 employees supports ₹22.9 lakh of revenue a year, the signature of a people-led business.

Revenue / employee₹22.9 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?Little sign of one

Returns on capital of 14.9% 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?

Growth has come mainly from selling more, rather than from keeping more of each sale. Over 3 years revenue moved +301% while net margin moved +16% 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+301%

Margin effect+16%

DalalBaazaar Score

67/ 100

Good

Weighted across six categories. Every point is explained below.

✗ Beta of 1.81 — amplifies market moves in both directions
✗ Micro Cap: thinner liquidity and sharper drawdowns are normal
✗ Profits have swung sharply from year to year — earnings are hard to forecast
✗ Negative free cash flow means dependence on external funding

Quality vs. Valuation

Company Quality

68/ 100

Good

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

Valuation

88/ 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

2.4x

2Y Median

11.7x

27 monthly readings · mean 16.9x · range 2.6x–62.4x

Sector Median

69.2x

median of 4 sector peers

🟢Current valuation is approximately 79% below its 2y median of 11.7x. 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 97% below the peer median of 69.2x.

vs. its own history

Cheap

11.7x median over 27 months · -79%

vs. sector peers

Cheap

69.2x median of 4 peers · -97%

vs. generic bands

Cheap

Below 15x

EV/EBITDA

5.2x

PEG

0.04

What's Good / What's Bad

🟢 What's Going Well2

Margins are improving
EBITDA margin is up from 56.4% to 59.9% over 3 years.
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

5 items require attention · 3 high · 2 watch

🔴Debt has risen sharplyFinancial
Total debt is up 162% over 3 years, from ₹8 Cr to ₹20 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 406% against revenue up 301% — sales are being booked faster than they are collected.
🟡Interest coverage is deterioratingFinancial
Cover has fallen from 8.0x to 2.8x.
🟡Free cash flow is negativeFinancial
Free cash flow was -₹21 Cr in the latest year.

Investment Thesis

🟢 Bull CaseWhat could make this work?

Margin expansion has further to run
EBITDA margin has risen from 56.4% to 59.9%. If that holds, profit compounds faster than sales and today's multiple looks cheaper in hindsight than it does now.
Priced below its own history
The stock trades 79% 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 97% below the sector median. Either the market sees a problem the numbers do not show, or the discount closes.
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 406% against revenue up 301%. If customers keep taking longer to pay, reported profit will not turn into cash — and write-offs follow if some never do.
Earnings are hard to forecast
Profit has swung sharply from year to year, so any single year — good or bad — is a weak guide to the next. Cyclical earnings deserve lower multiples for that reason.
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

1Revenue growth stays above 44% a year✓ 58.9% CAGR
Latest reported year was -10.2%. The bar is set below the established compounding rate, so ordinary variation does not trip it.
2EBITDA margin holds above 58%✓ 59.9%
Two points below today's level — enough room for noise, tight enough to catch real compression.
3Debt / EBITDA stays below 2x✗ 2.9x
The ratio lenders write covenants against; it survives a small or negative equity base, unlike Debt/Equity.
4Free cash flow remains positive✗ -₹21 Cr
Profit that never becomes cash eventually stops being profit.
5Interest cover stays above 3x✗ 2.8x
How much operating profit can fall before interest stops being comfortably covered.

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 · 6 neutral · 2 weak

Market Cap

₹17 Cr

Micro Cap

Smaller company — thin liquidity and deep drawdowns are normal here

P/E (Trailing)

2.4x

Cheap

Cheap against the generic band

P/B Ratio

0.29x

Reasonable

Reasonable against the company's book value

EPS (TTM)

₹3.23

Profitable

Profitable on a per-share basis

ROE

11.4%

Moderate

Moderate capital efficiency

ROCE

14.9%

Moderate

Moderate return on the capital in the business

Debt/Equity

0.64x

Moderate

Moderate leverage

Revenue Growth (YoY)

-10.2%

Shrinking

Sales are contracting

Profit Growth (YoY)

8.5%

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

-₹21 Cr

Cash burning

Spending more cash than the operations bring in

More Metrics

Operating Margin

66.3%

Good

Healthy core-business profitability

Net Margin

27.8%

Good

Strong bottom-line conversion

Current Ratio

5.47

Comfortable

Healthy short-term liquidity

Beta (vs Nifty)

1.81

High swing

Swings more than the market in both directions

52W Range Position

Near low

Near its 52-week low

Technical Snapshot

SMA 20 / SMA 50

8.3 / 8.6

Bearish alignment (short < long)

Price vs SMA 200

Below

Long-term downtrend

RSI (14)

45.7

Neutral momentum

Financial Trend (4-Year)

Metric	FY22	FY23	FY24	FY25	3Y CAGR
Revenue	₹3 Cr	₹6 Cr	₹8 Cr	₹11 Cr	+58.9%
EBITDA	₹2 Cr	₹3 Cr	₹5 Cr	₹7 Cr	+62.1%
EBITDA Margin	56.4%	44.3%	64.4%	59.9%	—
PAT (Net Profit)	₹1 Cr	₹2 Cr	₹3 Cr	₹3 Cr	+67.1%
EPS	₹0.56	₹1.23	₹2.42	₹2.98	+74.3%
ROE	14.1%	20.3%	20.1%	11.4%	—
ROCE	14.9%	22.0%	27.3%	14.9%	—
Total Debt	₹8 Cr	₹6 Cr	₹5 Cr	₹20 Cr	+37.9%
Free Cash Flow	₹2 Cr	₹3 Cr	-₹3 Cr	-₹21 Cr	—

🟢 Revenue has grown at 58.9% a year over 3 years.

🟢 EBITDA has grown at 62.1% a year over 3 years.

🟢 EBITDA Margin has risen from 56.4% to 59.9% over 3 years (+3.5 pts).

🟢 PAT (Net Profit) has grown at 67.1% a year over 3 years.

🟢 EPS has grown at 74.3% a year over 3 years.

🔴 ROE has fallen from 14.1% to 11.4% over 3 years (-2.7 pts).

🟡 ROCE has held roughly flat at 14.9% over 3 years.

🔴 Total Debt has grown at 37.9% a year over 3 years.

🔴 Free Cash Flow has turned negative, from ₹2 Cr to -₹21 Cr.

Balance Sheet & Cash Flow — FY2025

Total Assets

₹53 Cr

Total Liabilities

₹24 Cr

Cash & Equivalents

₹1 Cr

Operating Cash Flow

-₹21 Cr

Capex

-₹0 Cr

Shareholding (proxy)

Institutional Holding

0.0%

Insider Holding

82.9%

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

Travels & rentals Limited Share Price

Upstox, 05 May

Travels & Rentals accepts CS Jaya Jain's resignation effective Aug 14

scanx.trade, 14 Aug

Travels & Rentals shares debut at 37% premium over IPO price on BSE SME

Moneycontrol.com, 05 Sept

7 Best Travel & Tourism Stocks for 2026 and How to Invest

The Motley Fool, 21 Sept

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

Equitymaster, 03 Jul

Travel Experts Share Top Tips To Make Your 2026 Vacations Affordable Even on a Tight Budget

Investopedia, 09 Dec

Watch Items

Revenue growth is negative (-10.2%) on the latest reported period — check if this is one-off or a trend.
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

StrongBusiness Quality · Growth · Profitability · Valuation

MiddlingFinancial Health

WeakRisk

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

3 of 5 tripwires tripped — Debt / EBITDA stays below 2x; Free cash flow remains positive; Interest cover stays above 3x · see Key things to watch ↑