At a Glance
Tourism Finance Corporation of India (TFCI) posted Q1 FY26 revenue ₹64 Cr (+3% YoY) and net profit ₹31 Cr (+20% YoY), with financing margins at a sweet 57%. Stock, however, dipped 3% as promoter holding has hit a laughable 3.85%, leaving public investors to hold the fort. Dividend payout remains stable at ₹3/share, but long-term growth still looks like a Goa beach shack in monsoon—uncertain.
Introduction
TFCI is a niche NBFC that funds hotels, resorts, amusement parks, and everything that tourists Instagram. It’s like IRFC for the tourism sector—steady income, but zero excitement. The stock has delivered a 53% one-year rally, but promoters dumping shares faster than guests leaving a bad Airbnb is a major red flag.
Business Model (WTF Do They Even Do?)
- Loans: Long-term project financing for tourism infra.
- Investments: Equity, debentures, prefs in hospitality projects.
- Revenue Source: Interest income (70%+), processing fees.
- Clients: Hotels, resorts, theme parks, multiplexes.
Essentially, it’s a boutique lender catering to tourism developers.
Financials Overview
Q1 FY26
- Revenue: ₹64 Cr (+3%)
- PAT: ₹31 Cr (+20%)
- NIM: 57%
- EPS: ₹3.3
FY25 Snapshot
- Revenue: ₹252 Cr
- PAT: ₹104 Cr
- ROE: 9%
Comment: Profitability is solid, but growth is crawling.
Valuation
- P/E: 23.5x (higher than peers like REC @6x)
- CMP/BV: 2.09x → pricey for a low-growth lender
- DCF: Fair value around ₹180–₹210.
Fair Value Range: ₹180 – ₹210
CMP ₹275 → overvalued.
What’s Cooking – News, Triggers, Drama
- Q1 Profit Jump: Driven by
