Firm Overview
Journey Meals Companies Ltd. (TFS), included in 2009, is one among India’s main gamers within the airport-based meals and hospitality sector. The corporate operates 442 Journey Fast Service Eating places (QSRs) and 37 premium lounges throughout main journey hubs in India, Malaysia, and Hong Kong. TFS’s shops span throughout 127 manufacturers (together with worldwide, regional, and in-house), providing curated, high-quality eating experiences tailor-made for travellers. It holds 26% market share in Indian airport QSR and 45% in airport lounges.
TFS is understood for its operational excellence with a ~94% concession retention charge and has developed environment friendly provide chain methods, a various outlet format, and robust model alliances. It has partnered with international manufacturers equivalent to KFC, Jamie Oliver’s Pizzeria, and Subway, whereas additionally growing widespread in-house choices.
Promoters & Shareholding:
| Particulars | Pre-Subject | Put up-Subject |
| Promoters | 100.00% | 86.19% |
| Others | 0.00% | 13.81% |
Public Subject Particulars:
- Provide for Sale: 18.2 million shares with face worth of Rs 1.
- Recent Subject: Nil
- Complete Subject Dimension: ₹2,000 Cr
- Value Band: ₹1,045 – ₹1,100
- Put up Subject Market Cap: ₹13,760.7 Cr – ₹14,484.7 Cr
- Bid Lot: 1 lot for ₹14,300 and a max of 13 heaps.
- Provide Interval: Jul 07, 2025 – Jul 09, 2025
- Itemizing Date: Jul 14, 2025
- Guide Working Lead Managers: Kotak, HSBC, ICICI Securities, B&Okay Securities
Objects of the Provide:
- No contemporary capital raised; whole subject is Provide for Sale by present shareholders.
Professionals:
- Market chief within the airport QSR and lounge section with vital progress in outlet base.
- Robust monetary efficiency with EBITDA margin of ~33% in FY25.
- Excessive model recall and broad portfolio throughout home and worldwide journey hubs.
- Sturdy enlargement plans by means of ARAYA lounges and entry into new markets.
- Premium pricing energy attributable to captive journey viewers and controlled worth environments.
Dangers:
- Excessive dependence on journey footfall and key airports (e.g., Delhi, Mumbai).
- Quick-term concession agreements and lease renewals pose continuity dangers.
- Excessive fastened price construction might damage margins in downturns.
- Publicity to regulatory and coverage modifications in airport operations.
Business Outlook:
India’s aviation sector is witnessing a fast scale-up with airports anticipated to rise to 180 by FY29. Airport retail and F&B is a rising contributor to non-aero income. The Indian airport QSR section is forecasted to develop at 18-20% CAGR (FY24–29) whereas lounges are additionally seeing enlargement attributable to elevated journey and bank card entry. Globally, airport F&B is transitioning to experience-based, premium codecs, benefitting gamers like TFS.
Monetary Snapshot (INR Crores):
| Particulars | FY23 | FY24 | FY25 |
| Income | 1,067 | 1,396 | 1,688 |
| EBITDA | 374 | 412 | 554 |
| EBITDA Margin (%) | 35% | 30% | 33% |
| Web Revenue (PAT) | 251 | 298 | 380 |
| PAT Margin (%) | 24% | 21% | 22% |
| Adjusted EPS (₹) | 19.1 | 22.6 | 28.8 |
| Web Price | 665 | 888 | 1,070 |
| ROE (%) | 38.8% | 34% | 35% |
Valuation:
On the higher worth band, the problem is valued at EV/EBITDA of 26.1x, under the peer QSR common of 31.9x. With superior margin profile (~2x peer common) and excessive return ratios (ROE ~39%, ROIC ~29%), valuations seem enticing. Different listed friends like Jubilant Foodworks and Devyani Worldwide commerce at larger multiples regardless of comparatively weaker margins.
Peer Comparability Evaluation:
| Metric | Journey Meals Companies Ltd. | Devyani Worldwide | Jubilant FoodWorks | Sapphire Meals | Westlife Foodworld |
| Market Cap (₹ Cr) | 14,486 | 20,150 | 35,200 | 9,600 | 13,050 |
| Income (FY25) (₹ Cr) | 1,763 | 3,580 | 5,450 | 2,590 | 2,480 |
| PAT (FY25) (₹ Cr) | 379.7 | 295 | 440 | 142 | 198 |
| Debt-to-Fairness (x) | 0.4 | 1.3 | 0.8 | 1.1 | 0.5 |
| Variety of Retailers | 442 | 1,790 | 1,995 | 876 | 389 |
| Valuation Metrics | |||||
| P/E Ratio (x) | 38.15 | 68.3 | 80 | 67.6 | 65.9 |
| Key Efficiency Indicators (KPIs) | |||||
| SSSG (%) | 9.20% | -1.80% | 1.20% | -4.10% | 2.50% |
| EBITDA Margin (%) | 28.40% | 18.70% | 21.30% | 16.20% | 17.80% |
| PAT Margin (%) | 21.50% | 8.20% | 8.10% | 5.50% | 8.00% |
| ROCE (%) | 25.10% | 15.30% | 18.50% | 12.40% | 16.10% |
Identical-Retailer Gross sales Progress (SSSG): TFS reported a really wholesome SSSG of 9.2%. This can be a standout determine, particularly when in comparison with friends who’ve reported flat and even unfavorable SSSG. It signifies sturdy and rising demand at its present places, highlighting the resilience of its travel-focused mannequin.
Operational Effectivity (EBITDA Margin): The corporate’s EBITDA margin of 28.4% is exceptionally sturdy and leads the peer group by a large margin. This reinforces the purpose that its core operations are considerably extra worthwhile than different QSR gamers, probably attributable to premium pricing and decrease overheads in airport environments.
Capital Effectivity (ROCE): With an ROCE of 25.1%, Journey Meals Companies demonstrates superior effectivity in utilizing its capital to generate income. This excessive return on capital is a powerful indicator of a strong enterprise mannequin and environment friendly administration.
Suggestion:
With sturdy operational metrics, high-growth runway within the Indian journey F&B house, and a margin/return profile higher than listed friends, Journey Meals Companies Ltd seems well-positioned for long-term progress. Regardless of no contemporary subject, present fundamentals and market dominance may warrant a “Subscribe” ranking for traders taking a look at long-term publicity to India’s shopper journey and hospitality sector.
Disclaimer:
This text shouldn’t be construed as funding recommendation, please seek the advice of your Funding Adviser earlier than making any sound funding resolution.
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