ITDC Ltd
Stock Snapshot
Price Performance
Vista Outlook
View Technicals Analysis →Basis of our Recommendation
Recent management commentary and analyst insights indicate that ITDC Ltd is navigating a recovery phase following a contraction in revenue, with expectations of improving profitability driven by expanding margins. The hospitality sector is currently experiencing a sunrise growth state, characterized by increasing pricing power and a robust domestic demand for travel. This aligns with Vista's forecast of early revenue recovery and margin improvement, as the company is well-positioned to capitalize on evolving consumer preferences towards experiential travel. The balance sheet remains conservatively financed, supporting financial stability, which is crucial in a cyclical industry like hospitality. While geopolitical tensions pose short-term challenges, the long-term outlook remains positive, with a forecasted CAGR of over 8% for the industry. ITDC's focus on innovative offerings and domestic tourism positions it favorably amidst these trends. However, investors should remain vigilant regarding external factors that could impact occupancy rates and average daily rates. Overall, the combination of improving margins, a stable balance sheet, and a favorable macro environment supports Vista's cautious outlook for ITDC, reflected in the current sell recommendation and modest expected upside over the next 12-24 months
Why We Like This Stock
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Key Parameters
Financial Snapshot
| Actuals | Forecast | ||||
|---|---|---|---|---|---|
| FY24 | FY25 | FY26 | FY27 | FY28 | |
| Revenue (Cr.) | 509 | 570 | 533 | 547 | 573 |
| Profit Before Tax (Cr.) | 102 | 98 | 112 | 124 | 128 |
| PBT Margin | 20.0% | 17.2% | 2109.6% | 22.7% | 22.3% |
| Net Profit (Cr.) | 74 | 68 | 80 | 90 | 92 |
| Earnings Per Share | 8.7 | 8.1 | 9.3 | 10.4 | 10.8 |
Analyst Recommendations
No analyst recommendations available.
Company Overview
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India Tourism Development Corporation Limited, together with its subsidiaries, operates in the travel, tourism, and hospitality industry in India. The company produces, distributes, and sells tourist publicity literature; and manages catering services. It also offers entertainment services, engineering related consultancy services, duty free shopping facilities to tourists, and tourism and hospitality management related training and education services. In addition, the company is involved in the event management agency activities, such as conferences, exhibitions, workshops/seminars and other national and international events; consultancy and execution of tourism and engineering projects; and mounting of sound and light shows. It operates Ashok Group of Hotels, joint venture hotel, restaurant, and duty-free shops at sea ports, as well as ATT units, including air ticketing, tour packages, transportation, and cargo handling services. India Tourism Development Corporation Limited was incorporated in 1965 and is based in New Delhi, India.