TBOTEK - Fundamental Analysis: Financial Health & Valuation
Back to ListFundamental Rating: 2.9
| Stock Code | TBOTEK | Market Cap | 15,051 Cr. | Current Price | 1,384 ₹ | High / Low | 1,765 ₹ |
| Stock P/E | 318 | Book Value | 75.6 ₹ | Dividend Yield | 0.00 % | ROCE | 14.4 % |
| ROE | 10.3 % | Face Value | 1.00 ₹ | DMA 50 | 1,552 ₹ | DMA 200 | 1,518 ₹ |
| Chg in FII Hold | 0.12 % | Chg in DII Hold | 0.11 % | PAT Qtr | 9.88 Cr. | PAT Prev Qtr | 16.8 Cr. |
| RSI | 28.7 | MACD | -64.4 | Volume | 29,324 | Avg Vol 1Wk | 1,07,612 |
| Low price | 986 ₹ | High price | 1,765 ₹ | PEG Ratio | 13.7 | Debt to equity | 0.12 |
| 52w Index | 51.1 % | Qtr Profit Var | -27.2 % | EPS | 4.23 ₹ | Industry PE | 42.3 |
💰 Financials: TBO Tek (TBOTEK) shows weak fundamentals with ROE at 10.3% and ROCE at 14.4%, reflecting modest efficiency. Debt-to-equity ratio of 0.12 highlights a conservative balance sheet with low leverage. Quarterly PAT declined from ₹16.8 Cr. to ₹9.88 Cr., showing earnings pressure (-27.2%). Cash flows remain inconsistent, raising concerns about sustainability despite growth potential in travel technology services.
📊 Valuation: Current P/E of 318 is extremely high compared to the industry average of 42.3, suggesting severe overvaluation. P/B ratio (~18.3) is very high relative to book value of ₹75.6. PEG ratio of 13.7 signals overvaluation relative to growth prospects. Intrinsic value analysis suggests the stock is trading far above fair value, requiring caution for new entries.
🌐 Business Model & Competitive Advantage: TBO Tek operates as a travel distribution platform, connecting travel agents, suppliers, and customers through technology. Its competitive advantage lies in scale, digital integration, and global partnerships. However, profitability is constrained by high competition, thin margins, and cyclical demand in the travel industry.
📈 Entry Zone: Considering DMA 50 (₹1,552) and DMA 200 (₹1,518), accumulation is only attractive if the price dips below ₹1,000–₹1,100. Long-term investors should be cautious, as valuations are stretched despite growth potential in travel tech.
Positive
- Low debt-to-equity ratio (0.12) ensures financial stability.
- Strong digital platform with global partnerships.
- Exposure to growing travel technology sector.
- Increase in both FII (+0.12%) and DII (+0.11%) holdings.
Limitation
- Extremely high P/E (318) compared to industry average (42.3).
- P/B ratio (~18.3) suggests expensive valuation.
- PEG ratio of 13.7 signals overvaluation relative to growth.
- Quarterly PAT decline (-27.2%) highlights earnings pressure.
Company Negative News
- Sequential profit decline from ₹16.8 Cr. to ₹9.88 Cr.
- Weak EPS at ₹4.23 compared to market price.
Company Positive News
- Increase in institutional holdings (FII +0.12%, DII +0.11%).
- Strong positioning in travel technology and distribution.
Industry
- Travel technology industry P/E at 42.3 highlights TBOTEK trades at a massive premium.
- Sector growth driven by digital adoption and rising travel demand.
- High competition and cyclical demand remain key risks.
Conclusion
🔑 TBO Tek is a growth-oriented travel technology company with strong digital integration and global partnerships. However, weak profitability and extreme overvaluation limit near-term attractiveness. Entry only below ₹1,000–₹1,100 offers a better risk-reward balance. Long-term holding is risky unless earnings improve significantly and valuations normalize.
I can also prepare a comparative HTML snapshot against peers like EaseMyTrip and Yatra Online to highlight TBOTEK’s relative valuation and efficiency.