1. At a Glance – Blink and You’ll Miss the Irony
Travels & Rentals Limited is one of those rare BSE SME companies that looks like a boring uncle at a family wedding but secretly lifts heavier financial weights than the gym bros. Incorporated in 1996, this travel services company is currently sitting at a market cap of roughly ₹21.6 crore, a stock price of ₹19.3, and a valuation that screams “ignored by the market” louder than a middle seat passenger asking for armrest rights.
In the last three months, the stock is down about 45%. Over one year, it has collapsed nearly 79%. Meanwhile, the company quietly clocked sales of ₹10.9 crore (TTM), PAT of ₹3.04 crore, and an operating margin north of 66%. Yes, sixty-six percent. That’s not a typo, that’s an airline ticket margin that forgot it’s supposed to be low.
ROCE stands at 24.1%, ROE at 15%, P/E at 7.1 versus an industry PE of 40+, and price-to-book at a discounted 0.73. The business just reported half-yearly results, delivered consistent profits, and still trades like it committed a crime. Is the market blind, or is there something sneaky hiding behind those glossy travel brochures? Let’s unpack this suitcase properly.
2. Introduction – A 1996 Company Living in a 2025 Market
Travels & Rentals Limited was incorporated in 1996. That alone makes it older than half the listed startups that still haven’t figured out unit economics. The company operates in the travel services space, offering end-to-end solutions including airline ticketing, hotels, tour packages, rail bookings, and ancillary services like visas, passports, and travel insurance.
This is not a flashy OTA app burning VC cash on discount coupons. This is old-school, relationship-driven, corporate-heavy travel management. The kind where clients don’t book because of cashback, but because missing a flight costs more than your ego.
In FY24, revenue was split between air ticketing (43.5%) and hotel reservations plus other services (56.5%). That diversification matters. When air ticket margins wobble, hotels and services quietly pay the bills. The company employs 58 people as of March 2024, which is small enough to be nimble and large enough to be audited without Excel crashing.
Yet, despite decent growth—sales CAGR of ~59% over three years and profit CAGR of ~67%—the stock price has been absolutely annihilated. So the obvious question arises: is this a hidden gem, or a beautifully wrapped working capital nightmare? Keep reading, detective.
3. Business Model – WTF Do They Even Do?
Travels & Rentals Limited is essentially a full-stack travel services provider. Think of it as the guy who plans your flight, books your hotel, fixes your visa, and reminds you to carry socks. The company offers:
- Domestic and international air ticketing
- Inbound and outbound customized tour packages
- Worldwide hotel reservations
- Rail tickets
- Visa, passport, insurance, and other travel-related services
The business is largely service-oriented, asset-light on paper, and margin-heavy in reported numbers. A big differentiator is its franchisee relationship with Lufthansa City Center International GmbH, under which it operates as “Business Plus Lufthansa City Center” in India. This affiliation gives it access to a global network of 580 locations across 105 countries. Fancy logo, global trust, and German discipline—what could go wrong?
Additionally, in 2024, the company entered into a sales and marketing agreement with Group Voyagers Inc. (Globus, Cosmos, Avalon Waterways brands) to sell their travel products in India. Translation: more premium clients, more commissions, more paperwork.
The company operates largely through B2B and corporate clients, where repeat business matters more
