1. At a Glance
ITDC, the iconic PSU behind Ashok Hotel, is back on tourist radars with 27% ROCE, Rs 81 Cr PAT, and nearly debt-free operations. From hospitality to heritage to hard cash—this one’s finally punching above its three-star image.
2. Introduction with Hook
Imagine if your sarkaari hotel suddenly started acting like a startup—lean, profitable, dividend-paying, and actually…growing. That’s ITDC 2025.
- Market Cap: ₹5,152 Cr
- P/E: 63.3x
- ROE: 21.6%
From dusty Delhi banquets to digitized hospitality, the transformation’s real—but is the valuation just tourist tax?
3. Business Model (WTF Do They Even Do?)
ITDC is not just a hotel operator. It’s India’s one-stop public tourism shop, handling:
- Hotels (Ashok Group: flagship Delhi & others)
- Transport (luxury coaches, airport pickups)
- Duty-Free Shops (DFS at seaports)
- Event Management & Consultancy
- Hospitality Education (Ashok Institute)
- Currency Exchange
It’s a diversified state-run tourism conglomerate with high fixed assets and surprising adaptability.
4. Financials Overview
| FY | Revenue (₹ Cr) | EBITDA (₹ Cr) | PAT (₹ Cr) | Net Worth (₹ Cr) |
|---|---|---|---|---|
| 2023 | 461 | 101 | 54 | 252 |
| 2024 | 532 | 85 | 70 | 303 |
| 2025 | 570 | 85 | 81 | 278 |
Takeaways:
- OPM stabilizing at 15–19%
- PAT nearly doubled in 2 years
- Revenue CAGR (3Y): ~25%
5. Valuation
Price: ₹601
EPS (FY25): ₹9.51
P/E: 63.3x
Book Value: ₹42.4 → P/B: 14.2x
Fair Value Estimate Range:
- Conservative (20x): ₹190
- Reasonable (30x): ₹285
- Optimistic PSU Buzz (40x): ₹380
➡️ Fair Value Range: ₹190 – ₹380
Current price = “Bharat tourism multibagger” premium.
6. What’s Cooking – News, Triggers, Drama
- Rs. 2.90 DPS for FY25 → Stable dividend policy
- New MD appointed (Apr 2025) → 26 years govt experience
- Aggressive event management vertical being scaled
- Auditor qualification in FY25 → minor concern
- Huge tourist revival post-COVID → tailwind
7. Balance Sheet
| Metric | FY23 | FY24 | FY25 |
|---|---|---|---|
| Net Worth | ₹252 Cr | ₹303 Cr | ₹278 Cr |
| Total Liabilities | ₹934 Cr | ₹1,066 Cr | ₹746 Cr |
| Borrowings | ₹1 Cr | ₹1 Cr | ₹1 Cr |
| Assets | ₹934 Cr | ₹1,066 Cr | ₹746 Cr |
Bullet Points:
- Negligible debt = PSU rarity
- Shrinking liabilities in FY25
- No major capex = asset-light now
8. Cash Flow – Sab Number Game Hai
| FY | CFO | CFI | CFF | Net Cash Flow |
|---|---|---|---|---|
| 2023 | ₹-12 Cr | ₹-3 Cr | ₹0 Cr | ₹-15 Cr |
| 2024 | ₹42 Cr | ₹4 Cr | ₹-19 Cr | ₹28 Cr |
| 2025 | ₹53 Cr | ₹-4 Cr | ₹-22 Cr | ₹27 Cr |
Takeaway:
- Steady cash from ops
- No financing dependence
- Surplus being distributed (dividend, FY25 payout 30%)
9. Ratios – Sexy or Stressy?
| Metric | FY25 |
|---|---|
| ROE | 21.6% |
| ROCE | 27.3% |
| OPM | 15% |
| PAT Margin | 14.2% |
| D/E | Practically 0 |
| P/B | 14.2 |
Conclusion:
Operationally sexy, valuation-wise slightly beach-resort pricey.
10. P&L Breakdown – Show Me the Money
| FY | Revenue | EBITDA | PAT | EPS |
|---|---|---|---|---|
| 2023 | ₹461 Cr | ₹101 Cr | ₹54 Cr | ₹6.43 |
| 2024 | ₹532 Cr | ₹85 Cr | ₹70 Cr | ₹8.20 |
| 2025 | ₹570 Cr | ₹85 Cr | ₹81 Cr | ₹9.51 |
Narrative:
- Margins stable despite inflation
- Steady topline growth
- No gimmicks or extraordinary income
11. Peer Comparison
| Company | Rev (Cr) | PAT Margin | ROE | P/E | Mcap (Cr) |
|---|---|---|---|---|---|
| Indian Hotels | 8,334 | ~20% | 16.1% | 62.9x | ₹1.04L Cr |
| Chalet Hotels | 1,717 | 7.2% | 5.8% | 131x | ₹18,748 Cr |
| ITDC | 570 | 14.2% | 21.6% | 63.3x | ₹5,152 Cr |
Insight:
ITDC beats peers on margins, lags on brand. But still has PSU unlock angle.
12. Miscellaneous – Shareholding, Promoters
| Holder | % |
|---|---|
| Govt of India (Promoter) | 87.03% |
| Public | 11.19% |
| DIIs | 1.78% |
| FIIs | ~0% |
Fun Fact:
Govt owns 87%. Any disinvestment = rocket fuel. FII/Mutual Funds barely entered.
13. EduInvesting Verdict™
ITDC is like a government lodge that got a modern makeover and is now booking profits faster than rooms. Strong financials, solid ROE, and surprising PSU-style discipline.
BUT the stock already factors in most of the optimism—and you’re paying 60x+ earnings for a 3-star asset base.
Still, in a country of rising domestic tourism and PSU rerating fever, this is one of the rare “value in disguise” stories. Watch for any disinvestment whispers—they’ll spike this harder than a Goa cocktail.
Metadata
– Written by EduInvesting Research Desk | July 13, 2025
– Tags: ITDC, Tourism PSU, Ashok Hotel, Government Stocks, Hospitality, Dividend PSU, Public Sector Reforms
