At a Glance
International Travel House Ltd, a ₹416 Cr microcap, is the oldest listed travel company in India. While the world is chasing AI unicorns, ITH is calmly selling corporate cab rides and airline tickets. With zero debt, 24% ROCE, and a 5Y profit CAGR of 40%, this ITC group company is quietly compounding. But is the ₹520 price justified, or are we just nostalgic for Yatra.com?
1. 🎯 Introduction with Hook
If IRCTC is the cool government monopoly everyone’s simping for, International Travel House is the forgotten cousin who quietly handles airport pickups, international hotel bookings, and corporate offsites — and actually turns a profit.
Yes, it doesn’t have a mobile app with emojis.
No, it hasn’t claimed to “revolutionize travel with blockchain.”
But since COVID, it went from -₹45 Cr net loss in FY21 to ₹27 Cr PAT in FY25. 📈
And here’s the kicker: zero debt.
Let that sink in.
2. 🧳 Business Model – WTF Do They Even Do?
ITH is a full-stack travel services company, mostly B2B.
Main Segments:
- 🎫 Air Ticketing (Domestic + International) via IATA-BSP system
- 🚕 Car Rental & Chauffeur Services for corporates
- 🏨 Hotel Bookings & MICE (Meetings, Incentives, Conferences, Events)
- 🛂 Visa Assistance & Passport Services
- 📦 Inbound Travel & Logistics (Especially for corporate guests)
No package tours for aunties.
No romantic getaways to Manali.
Only serious business travel. Mostly ITC employees, MNCs, and government contracts.
3. 📈 Financials Overview – Profit, Margins, ROE, Growth
ITH is literally a phoenix. 🐦🔥
After the COVID crash, it rebounded harder than your ex in a gym phase.
| Metric | FY21 | FY22 | FY23 | FY24 | FY25 |
|---|---|---|---|---|---|
| Sales (₹ Cr) | 59 | 94 | 184 | 217 | 236 |
| Net Profit (₹ Cr) | -45 | -11 | 28 | 22 | 27 |
| OPM % | -64% | -7% | 12% | 16% | 16% |
| ROE % | -35% | -10% | 17% | 18% | 18% |
| 5Y PAT CAGR | — | — | — | — | ~40% |
The literal turnaround story.
ITH is not just surviving, it’s thriving.
4. 💸 Valuation – Is It Cheap, Meh, or Crack?
- CMP: ₹520
- Market Cap: ₹416 Cr
- TTM EPS: ₹33.96
- P/E: ~15.3x
- Book Value: ₹207 → P/B: 2.5x
- Dividend Yield: ~1%
🧮 Fair Value Range:
Let’s slap a conservative 12x to 16x P/E on FY25 EPS of ₹34:
👉 FV Range = ₹410 to ₹545
At ₹520, we’re near the upper bound. You’re not robbing a bank, but you’re also not overpaying like Easy Trip investors post-IPO.
5. 🔥 What’s Cooking – News, Triggers, Drama
- 🧾 Postal Ballot for related party transactions with ITC entities (classic)
- 🧳 Corporate travel demand recovering strongly post-COVID
- 👔 Stable MD change in Jan 2023 — no management drama
- 📊 ICRA ratings reaffirmed in July 2024 – creditworthy and boring
Boring = profitable.
Drama-free = undervalued.
6. 🧾 Balance Sheet – How Much Debt, How Many Dreams?
| Item | FY25 |
|---|---|
| Equity Capital | ₹8 Cr |
| Reserves | ₹157 Cr |
| Total Debt | ₹1 Cr |
| Cash & Equivalents | ₹~50 Cr est |
| Net Worth | ₹165 Cr |
| D/E Ratio | 0.01 (Basically nothing) |
Zero leverage. Clean like your mom’s kitchen.
7. 💵 Cash Flow – Sab Number Game Hai
ITH’s CFO is no magician, just disciplined.
| Year | CFO (₹ Cr) | FCF |
|---|---|---|
| FY23 | ₹9 Cr | Positive |
| FY24 | ₹49 Cr | High |
| FY25 | ₹38 Cr | Still High |
Solid cash from ops, reinvested smartly. No IPO dreams, just cash flow reality.
8. 📊 Ratios – Sexy or Stressy?
| Ratio | Value | Verdict |
|---|---|---|
| ROCE | 24% | Sexy |
| ROE | 17.6% | Sexy-ish |
| Debtor Days | 92 | Improving |
| Working Capital Days | 99 | Meh |
| OPM | 16.89% | Decent |
| Tax Rate | 26% | Normalized |
Everything’s on track. The only red flag is that the business isn’t sexy enough for YouTubers.
9. 📈 P&L Breakdown – Show Me the Money
- Revenue growing: ₹59 Cr → ₹236 Cr (FY21–FY25)
- Net Profit: Negative to ₹27 Cr
- No wild swings in cost structure
- OPM stabilized at 16–17% in FY24–25
- No “other income” gimmicks – real ops profit
ITH doesn’t rely on accounting gymnastics. No bonus issues, no split dopamine.
10. 🥊 Peer Comparison – Who Else in the Game?
| Company | P/E | ROCE | OPM | PAT (₹ Cr) | MCap (₹ Cr) |
|---|---|---|---|---|---|
| IRCTC | 49x | 49% | 33% | ₹1,281 Cr | ₹62,848 Cr |
| BLS Int’l | 30x | 33% | 29% | ₹508 Cr | ₹15,407 Cr |
| Easy Trip | 34x | 21% | 24% | ₹107 Cr | ₹3,682 Cr |
| ITH | 15x | 24% | 17% | ₹27 Cr | ₹416 Cr |
💡 ITH is the cheapest by far, with no debt and decent margins.
But it’s also the smallest fish. No moat, no scale, no buzz.
11. 🧩 Miscellaneous – Shareholding, Promoters
- 👑 Promoters (ITC Group): 61.69% (steady)
- 🧓 Public: 38.31%
- 🧑🤝🧑 12,000+ shareholders — many loyalists from the 90s
- 📞 Investor calls? No.
- 🚀 Growth plans? Low key.
12. 🧑⚖️ EduInvesting Verdict™
📦 “This is not a 10x rocket. This is the reliable Indigo flight that always lands on time.”
- ✅ Zero debt
- ✅ Profit CAGR 40%
- ✅ 16% OPM
- ✅ Clean cash flow
- ✅ Conservative valuation
But…
- ❌ Low liquidity (microcap)
- ❌ Zero digital buzz
- ❌ Limited growth scale (still ~₹240 Cr sales after 40 years)
👀 If you’re the kind of investor who gets excited by ITC dividends, you might just fall in love.
FV Range: ₹410 – ₹545
🎯 CMP ₹520 → Slightly Rich, But Not Frothy
✍️ Written by Prashant | 📅 9 July 2025
Tags: International Travel House, ITC group, travel stocks, microcap, turnaround stocks, dividend stocks, travel services, IRCTC peers, B2B travel, undervalued microcap
