Travels & Rentals IPO Review

Based at the heart of Kolkata, India, Lufthansa City Center Travels and Rentals is delivering the best-in-class travel services since 1987. With a wide range of clients from various industries of Chemical, Tea, Oil & Minerals, Steel, Engineering, IT, Healthcare, Refractories, Financial, Food Processing, Media & Entertainment, Fashion, Real Estate, Consulates, Chambers and much more adding to the list, they are happy to serve them consistently by delivering value added travel solutions and tech solutions assisted by end-to-end travel support.

The Company is promoted by Mr. Devendra Bharat Parekh who is the guiding force behind all the strategic decisions of their Company.

Financially, Travels & Rentals revenue increased from ₹290.59 Lakhs in FY22 to ₹579.06 Lakhs in FY23 and currently at ₹803.54 Lakhs in FY24. Similarly, EBITDA is increased from ₹157.49 Lakhs in FY22 to ₹238.00 Lakhs in FY23 and currently at ₹434.79 Lakhs in FY24. The PAT also increased from ₹69.01 Lakhs in FY22 to ₹150.64 Lakhs in FY23 and currently at ₹296.55 Lakhs in FY24. This indicates a steady financial performance.

For the Travels & Rentals IPO, the company is issuing shares at a pre-issue EPS of ₹3.64 and a post-issue EPS of ₹2.64. The pre-issue P/E ratio is 10.99x, while the post-issue P/E ratio is 15.15x against Industry P/E ratio is 32.05x. The company's ROCE for FY24 is 27.54% and ROE for FY24 is 26.72%. These metrics suggest that the IPO is fairly priced.

The Grey Market Premium (GMP) of Travels & Rentals potential listing gains of 40% - 50%. Given the company's financial performance and the valuation of the IPO, we recommend Investors to Apply to the Travels & Rentals Limited IPO for Listing gain or long term investment purposes.