Travel Food Services Ltd (TRAVELFOOD) — share price & stock analysis

Market cap

₹17,490 Cr

P/E

39.7×

ROE

35.3%

Book value / share

₹110

Revenue (FY26)

₹1,648 Cr

Profit after tax (FY26)

₹452 Cr

Weinstein stage

Stage 2 (12 weeks)

Data as of

1 July 2026

4 of the 5 things we track are currently moving the right way — nearly everything is pulling in the same direction.

Where the levels actually stand: ROCE 42% — a high-quality engine; effectively no debt; margins at an all-time high. Momentum says which way things are moving; these say where they are.

Read this number for what it is: it measures the DIRECTION of change, not the quality of the business. A mediocre business getting better scores high here; a great one having a soft quarter scores low. Profit, sales and margins count double, and a quarter of the score comes from our earnings-recovery lens (is the profit cycle turning up off its trough?).

The price is in a confirmed uptrend — 12 weeks and counting

Stock prices move through four repeating stages: basing (1), advancing (2), topping (3) and declining (4). This one is in Stage 2: advancing, 12 weeks in, confirmed.stage

The price sits above its rising 200-day average (₹1,216 today) — trends like this persist more often than they reverse, which is why the system rides them instead of guessing the top.dma_200

What would end it: two Friday closes in a row below the 200-day line. That is the house exit rule — mechanical, no debates.dma_200

From losing money in FY21 to record profits

Over 7 years, sales went from ₹501 Cr to ₹1,648 Cr (about 19% a year), and profit from ₹51.0 Cr to ₹452 Cr.revenuenet_profit

The books show real losses in FY21 (worst: ₹−60.0 Cr). Everything about today’s cheap-looking numbers must be read against that history — the recovery is what you are buying.net_profit

Sales jumped 26% last quarter

Mar 26 sales were ₹461 Cr, up 26% on the same quarter last year.revenue

Margins are widening — 37% → 40% in a year

Of every ₹100 of sales, the company keeps ₹40.4 as operating profit (a year ago it kept ₹36.7).opm_pct

Zoom out and this is the page's quiet hero: annual operating margin bottomed at −22.2% in FY21 and has been rebuilt to 39.4% — that recovery, not sales alone, is what powers the profit growth elsewhere on this page.operating_profit

The gross margin moved the same way (83% → 87%), so this is about input costs and pricing power — the raw-material equation improved.gpm_pctopm_pct

Profit grew 15% last quarter

Mar 26 profit after tax was ₹123 Cr, up 15% year on year.net_profit

A caution: a meaningful slice of this jump came from income outside the core business — that is lower-quality profit and may not repeat.other_income

The profits are real — they turn into cash

Over the last 5 profitable years, the business reported ₹1,394 Cr of profit and collected ₹1,628 Cr of operating cash — about 117% conversion.operating_cash_flownet_profit

One asterisk on that strength: suppliers are being paid 53 days later than a year ago (461 → 514 days). Cash flattered by stretching payables is real cash — but it is borrowed timing, not extra earning power.payable_days

The cash cycle looks tighter — but it is supplier credit doing the work

One rupee now takes about -438 days to go out the door as materials and come back as collected cash — down from -427 days the year before.cash_conversion_cycle

Look inside the improvement, though: suppliers are being paid 53 days later (461 → 514 days), while inventory actually got heavier (11 → 18 days). Supplier credit is funding the cycle — useful, but not the same thing as customers paying faster.payable_daysinventory_days

The asset base keeps compounding — this company builds

The productive asset base has gone from ₹115 Cr (FY16) to ₹636 Cr, with another ₹28.0 Cr of capacity under construction right now.fixed_assetscwip

The build is self-funded: the last 3 years' investing outflow (₹520 Cr) fits inside the operating cash the business generated (₹1,261 Cr).investing_cash_flowoperating_cash_flow

Debt is small — but no longer zero, and growing

For every ₹100 shareholders have put in (and left in), the company has borrowed ₹17 — total borrowings have grown from ₹60.0 Cr to ₹245 Cr over the window.borrowings

The equity base grew even faster, so the ratio stays comfortable — but a 4× rise in absolute borrowings deserves a name (acquisitions, capex), not a shrug. Watch whether it keeps compounding.borrowings

Every ₹100 kept in the business now earns ₹42 — and the number is rising

Return on capital employed is 42.0% (a year ago: 41.0%). This is the single best test of business quality: what the company earns on the money it keeps.roce_pct

A turnaround that stuck — the question is what’s left to re-rate

The numbers are genuinely mixed, and the price is roughly fair to the delivery so far.

Best thing in the data: debt improving (0.32× → 0.17×).borrowings

Biggest worry: cash generation falling (₹515 Cr → ₹393 Cr).operating_cash_flow

Machine-written research from Screener data — every number traces to its source column. Sector Alpha is not a SEBI-registered investment adviser; nothing here is a recommendation to buy or sell. Not investment advice.

Straight answers from the data