1. 🧠 At a Glance
TFCI lends money to theme parks, resorts, multiplexes, and anything else your bored family visits on weekends. It’s like Power Finance Corp, but instead of electrifying India, it finances your next staycation. Profits are stable, NPAs are low, but promoter holding? A grand 3.85%. Yes, you read that right.
2. 🎣 Introduction with Hook
If PFC and REC are the jocks of infra lending, TFCI is the artsy kid who funds ropeways, food courts, and boutique resorts. Stock’s up 29% in a year. EPS is growing, NPAs are under control, and dividend is a modest 1%. But with promoter stake near extinction and minimal revenue growth, is the party over before it begins?
3. 🏨 Business Model (WTF Do They Even Do?)
- Sector Focus: Pure-play lender to tourism and hospitality projects
- Clients: Hotels, restaurants, convention centres, amusement parks, multiplexes, ropeways
- Products:
- Long-term project finance
- Structured debt, debentures
- Preference shares & equity participation
- USP: No one else funds this niche in such a focused way
- Revenue Model: Interest income from loans, plus some other income from equity/debt instruments
4. 📊 Financials – Profits Ki Safari
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Revenue (₹ Cr) | 231 | 242 | 252 |
| Net Profit (₹ Cr) | 88 | 91 | 104 |
| EPS (₹) | 9.73 | 10.08 | 11.21 |
| Net NPA (%) | 1.54% | 3.92% | 1.61% |
| ROE (%) | 9% | 9% | 9% |
🟢 EPS steadily growing
🟢 ROE consistent (though not elite)
🔴 Revenue growth: flat like a Goa beach offseason
5. 💰 Valuation – Cheap or Just… There?
- CMP: ₹263
- Book Value: ₹131 → P/B = 2x
- TTM EPS: ₹11.21 → P/E = 23.4x
- Dividend Yield: 0.95%
- Market Cap: ₹2,433 Cr
🎯 Fair Value Range:
Let’s assume:
- EPS grows to ₹13 over next 2 years
- Valuation band of 12–15x PE (since peers like HUDCO & PFC trade below 10x)
🧮 FV Range = ₹156 – ₹195
⚠️ CMP of ₹263 implies you’re already paying tourism peak-season rates for an off-season destination
6. 🌶️ What’s Cooking – Triggers, Drama, and a ₹1,000 Cr Plan
- ✅ May 2025: ₹3/share dividend announced
- ✅ ₹1,000 Cr debt raise plan approved
- ✅ Credit rating upgrades by Infomerics, SMERA (2024)
- ❌ Promoter stake fell from 28.4% to 3.85% in 2 years 💀
- ✅ Net NPAs reduced from 3.92% to 1.61% in FY25
- ✅ Increased profit & EPS each year since FY21
👀 Key Watch: Deployment of raised funds and fresh loan disbursal growth
7. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Equity Capital | ₹90 Cr | ₹90 Cr | ₹93 Cr |
| Reserves | ₹927 Cr | ₹999 Cr | ₹1,124 Cr |
| Borrowings | ₹999 Cr | ₹978 Cr | ₹862 Cr |
| Total Liabilities | ₹2,045 Cr | ₹2,106 Cr | ₹2,102 Cr |
✅ Reserves growing
🔻 Debt decreasing — a rare NBFC unicorn
⚖️ D/E Ratio ~0.7x = quite reasonable
8. 💵 Cash Flow – Sab Number Game Hai
| Year | CFO (₹ Cr) | FCF | Notes |
|---|---|---|---|
| FY23 | -₹137 Cr | Neg | Choppy disbursal / repayments |
| FY24 | -₹7 Cr | Neg | Still weak |
| FY25 | ₹70 Cr | 🟢 | Finally breathing room |
🔻 Cash flow was unstable till FY24
🟢 FY25 turnaround may signal improved working capital discipline
9. 🔢 Ratios – Sexy or Stressy?
| Ratio | FY23 | FY24 | FY25 |
|---|---|---|---|
| ROE | 9% | 9% | 9% |
| Net NPA (%) | 1.54% | 3.92% | 1.61% |
| ROA (%) | 4.93% | ~5% | ~5% |
| Cost-to-Income | ~52% | ~50% | 48% |
- ROE is decent for a low-risk NBFC
- NPAs under control again
- Cost structure efficient
✅ Ratios aren’t sexy, but they’re stable
10. 💸 P&L Breakdown – Show Me the Money
| Item | FY25 (₹ Cr) |
|---|---|
| Revenue | 252 |
| Financing Profit | 120 |
| Financing Margin % | 48% |
| Net Profit | 104 |
| EPS | ₹11.21 |
🟢 Margins are solid
🔴 But topline growth is a snoozefest
11. ⚔️ Peer Comparison – How Does TFCI Stack Up?
| Company | P/E | ROE | EPS | Yield | Market Cap |
|---|---|---|---|---|---|
| PFC | 5.9x | 21% | ₹47 | 3.8% | ₹1.36L Cr |
| REC Ltd | 6.5x | 21% | ₹62 | 4.0% | ₹1.03L Cr |
| HUDCO | 17.1x | 15% | ₹13 | 1.8% | ₹46K Cr |
| IRFC | 28.0x | 12% | ₹4.9 | 1.1% | ₹1.82L Cr |
| TFCI | 23.4x | 9% | ₹11.2 | 0.95% | ₹2.43K Cr |
📌 Verdict:
TFCI is the smallest and slowest, but also niche and risk-averse. Priced like IRFC, but with less juice.
12. 🧬 Miscellaneous – Promoters, Shareholding & Fun Facts
- Promoter Holding: Just 3.85% 😱
- Public Holding: Massive 92.71% (Hello operator-owned stock)
- FIIs: Small increase from 2.85% to 3.44%
- No. of Shareholders: 89,254 → up 1.5x in 2 years
- Dividend: 27% payout (₹3/share)
📌 Promoter exit is both blessing & curse
💡 Market interest increasing despite it
13. 🧑⚖️ EduInvesting Verdict™
TFCI is like that underrated hill station resort — you get peace, basic amenities, decent food, but no 5-star excitement.
🟢 Positives:
- Niche lending model
- Stable profits and NPAs
- Low leverage
- Dividend-paying
🔴 Negatives:
- Poor revenue growth
- Promoter stake is almost nonexistent
- Valuation is too high for the slow lane
🎯 Fair Value Range: ₹156 – ₹195
🚨 CMP = ₹263 → You’re paying 5-star rates for a 3-star lodge.
Final Thought:
Unless you believe India’s tourism infra boom will be financed by TFCI and no one else, this may not be your best travel buddy.
✍️ Written by Prashant | 📅 July 5, 2025
Tags: TFCI, Tourism NBFC, Infra Lending, Niche Lenders, Smallcap NBFC, EduInvesting, Ropeway Finance, Amusement Park Lending, Dividend NBFCs, PFC vs TFCI
