Travel Food Services IPO Review

Travel Food Services is the leading player in the fast-growing Indian airport travel quick service restaurant (“Travel QSR”) and lounge (“Lounge”) sectors based on revenue in Fiscal 2025, with a market share based on revenue (including Associates and Joint Ventures) of approximately 26% in the Indian airport travel QSR sector and approximately 45% in the Indian airport Lounge sector in Fiscal 2025.

The Company benefits from the combined experience of the Promoters, (i)SSP Group plc (“SSP”), SSP Group Holdings Limited, SSP Financing Limited and SSP Asia Pacific Holdings Limited, and (ii) Kapur Family Trust, Varun Kapur and Karan Kapur.

The Revenues from operations for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 17,627.09 Million, ₹ 14,623.95 Million and ₹ 11,035.82 Million. The EBITDA for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were ₹ 6,763.46 Million, ₹ 5,499.93 Million and ₹ 4,580.54 Million. The Profit after Tax for the Fiscals ended on Mar 31, 2025, 2024 and 2023 were were ₹ 3,796.59 Million, ₹ 2,981.20 Million and ₹ 2,512.99 Million respectively. This indicates a steady growth in financial performance.

The Company Key Performance Indicates the pre-issue EPS of ₹ 27.58 and post-issue EPS of ₹ 27.58 for FY24. The pre-issue P/E ratio is 39.89x, while the post-issue P/E ratio is 39.89x agaisnt the Industry P/E ratio is 236x. The company's ROCE for FY24 is 51.40%, ROE for FY24 is 35.47% and RoNW is 34.64%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Travel Food Services showing listing gains of 18.18 %.Given the company's financial performance and the valuation of the IPO, we recommend Risky Investors to Apply to the Travel Food Services Limited IPO for Listing gain.

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About the Author
CA Abhay Kumar (Also known as  CA Abhay Varn) is a qualified Chartered Accountant by profession and cleared CA at age 21. He is a SEBI Registered Research Analyst with Registration Number - INH300008465. He Possesses 8+ years of experience in the Stock Market Field and has also worked in Big CA firms.