As of Mar 28, 2026, India Tourism Development Corporation Ltd (Resorts) has a deep value score of 52/100 (rated Average). Earnings are accelerating. 1Y return vs Nifty 500: -33%.
Deep value thesis based on recent earnings • Updated Mar 14, 2026
ITDC's core hotel business is recovering strongly with 28% revenue growth and 35% profit surge, but market is discounting value due to governance concerns that could be resolved through asset monetization and operational fixes.
Verdict
TURNAROUND_IN_PROGRESS
Re-rating catalysts over the next 2-4 quarters • Updated Mar 14, 2026
Settlement or recovery of ₹187 crore questionable receivables within next 2 quarters
Impact: +₹187 Cr revenue
“Auditor's qualified report highlighting non-compliance with GSA agreement terms”
Closing of Ashok/Janpath hotel disinvestment deals with DIPAM
“Long-pending disinvestment process at various stages with DIPAM and state governments”
Adding independent directors to meet SEBI LODR requirements
“Current failure to convene Audit Committee due to only one Independent Director”
Risks that could prevent re-rating or deepen the value trap
Auditor determines receivables non-recoverable
Management view: Company has not provided specific recovery plan in Q3 results
Monitor: Resolution status of ATT Delhi receivables
Prolonged legal disputes with hotel licensees
Management view: Company has not billed these fees since FY21 due to disputes
Monitor: Progress on licensee agreement renewals
Lack of progress on DIPAM disinvestment
Management view: Process remains in progress at various stages
Monitor: DIPAM approval status for hotel disinvestment
Forward-looking targets from management for FY26
Key Milestones
• Resolution of ATT receivables
• Progress on disinvestment deals
• Audit Committee reconstitution
Revenue, profit and margin growth rates
| Metric | YoY | 3Y CAGR | Trend |
|---|---|---|---|
| Revenue | +29% | +25% | Stable |
| PAT (Net Profit) | +33% | +80% | Stable |
| OPM | 18.0% | 0 bps | Expanding |
The above analysis is AI-generated from publicly available financial data. This is educational research only — not investment advice. Last updated Mar 14, 2026.
Based on publicly available financial data. This is educational research, not investment advice.
India Tourism Development Corporation Ltd has a deep value score of 52/100 (rated Average). This score is calculated from three components
India Tourism Development Corporation Ltd's quarterly profit (PAT) growth trajectory
India Tourism Development Corporation Ltd is underperforming the market despite improving earnings — this is the core deep value thesis
India Tourism Development Corporation Ltd's earnings momentum is Accelerating — profit growth is speeding up.
India Tourism Development Corporation Ltd's valuation metrics
India Tourism Development Corporation Ltd's revenue and margin trends
India Tourism Development Corporation Ltd's trailing twelve month (TTM) performance
India Tourism Development Corporation Ltd key facts
India Tourism Development Corporation Ltd shows limited deep value signals currently — score is 52/100 (Average). Monitor for improvement.
Resorts deep value sector overview
Deep value investing studies stocks that are underperforming the market despite showing improving fundamentals. The thesis is that the market has not yet recognized the earnings recovery, creating a potential valuation gap. It requires patience — recovery can take several quarters.
The deep value score (0-100) combines three factors:
- Earnings (0-40 pts): PAT growth across last 3 quarters, acceleration, and consecutive growth - Underperformance (0-35 pts): How much the stock trails Nifty 500 over 1Y, 6M, 3M (deeper underperformance = higher score) - Quality (0-25 pts): Revenue growth, margin trends, and valuation metrics (PEG, P/B)
Higher score indicates a stronger contrarian research signal.
India Tourism Development Corporation Ltd has 3 key growth catalysts identified from recent earnings analysis
India Tourism Development Corporation Ltd has 3 key risks worth monitoring
The above FAQs are generated from publicly available earnings data. This is educational research only. Sector Alpha is not SEBI registered and does not provide investment advice.
