TBOTEK - Fundamental Analysis: Financial Health & Valuation

Last Updated Time : 19 Sept 25, 2:16 pm

Fundamental Rating: 3.2

📊 Core Financials Analysis

Profitability

ROE: 10.3% and ROCE: 14.4% are decent, but not standout for a tech-driven platform.

EPS of ₹4.57 and a P/E of 341 indicate extreme overvaluation relative to earnings.

PAT dropped from ₹9.29 Cr to ₹16.8 Cr YoY, but the QoQ variation of −27.9% suggests earnings volatility.

Balance Sheet Health

Debt-to-equity ratio: 0.09 — very low, signaling strong financial discipline.

Book Value of ₹72.3 vs Current Price ₹1,601 → P/B ratio ~22.1, which is highly elevated.

No dividend yield, consistent with a reinvestment-focused growth strategy.

Cash Flow & Stability

PEG ratio of 14.7 implies significant overvaluation relative to growth.

RSI at 61.9 and MACD positive suggest short-term bullish momentum, though volume is declining.

📉 Valuation Metrics

Metric Value Insight

P/E Ratio 341 Extremely overvalued vs industry PE of 43.5

P/B Ratio ~22.1 Premium pricing

PEG Ratio 14.7 Indicates stretched valuation

Intrinsic Value ~₹1,200–₹1,300 Estimated well below current price

TBO Tek Ltd appears significantly overvalued, especially given its modest earnings and return metrics.

🌐 Business Model & Competitive Edge

Sector: TBO Tek operates as a global travel distribution platform, connecting travel agents, suppliers, and customers across B2B and B2C channels.

Strengths

Asset-light model with scalable tech infrastructure

Expanding global footprint and supplier network

Strong DII accumulation (+1.30%) suggests institutional optimism

Challenges

High valuation multiples not backed by consistent earnings

FII holding declined (−1.50%), possibly reflecting caution

Analysts have revised EPS expectations downward over the past year

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According to MarketScreener’s analyst consensus, the company is highly valued based on earnings and cash flow multiples, and recent EPS forecasts have been downgraded, indicating a bearish outlook.

📌 Entry Zone Recommendation

Suggested Entry Range: ₹1,200–₹1,300

Below 50 DMA (₹1,456) and closer to intrinsic value

RSI and MACD suggest waiting for technical confirmation before entry

🧭 Long-Term Holding Guidance

Hold if Already Invested: Provided you're targeting long-term platform scalability and global expansion.

Avoid Fresh Entry at Current Levels: Valuation is stretched; wait for earnings clarity or price correction.

Watchlist Triggers

EPS acceleration and margin expansion

Strategic partnerships or acquisitions

Institutional accumulation and volume breakout

TBO Tek is a promising digital travel platform with global ambitions, but its current pricing demands caution. You can explore deeper insights on TopStockResearch’s dashboard or Dhan’s valuation summary.

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