Check Before You Invest : Tourism Finance Corporation Of India Ltd

Q: Which industry/sub-sector does Tourism Finance Corporation Of India Ltd belong to?

Tourism Finance Corporation Of India Ltd belongs to the BFSI sector, operating specifically within the Finance Term Lending segment.

Q: Is Tourism Finance Corporation Of India Ltd a good quality company?

Tourism Finance Corporation Of India Ltd is a weak quality company, based on a inconsistent multi-year financial track record. This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q: Is Tourism Finance Corporation Of India Ltd undervalued or overvalued?

Tourism Finance Corporation Of India Ltd appears Overvalued, as its key valuation ratios are higher than their past averages. Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more. Valuation Ratios. Price to Earnings, Current: 27.81, Historic Median: 11.12. Price to Book, Current: 2.61, Historic Median: 0.94. Price to Sales, Current: 12.55, Historic Median: 4.31. EV to EBITDA, Current: 17.11, Historic Median: 8.82

Q: Is Tourism Finance Corporation Of India Ltd a good buy now?

Tourism Finance Corporation Of India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Q: Total Income growth of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Operating Income growth is 4.04% for FY-2025, which is above its 5-year CAGR of -1.81%, indicating faster growth.

Q: Return on Assets of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Return on Asset is 5%, which is above its 5-year historical median of 3.8%, indicating improved earnings on assets. Efficiency & Key Metrics. NPM (%), Current: 41.26, Historic Median: 37.67. PPOP (%), Current: 12.5, Historic Median: 9.09. RoA (%), Current: 5, Historic Median: 3.8

Q: Return on Equity (ROE) of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Return on Equity is 9% for FY-2025, which is in line with its 5-year historical median of 9%, indicating the business is making similar use of its shareholders capital.

Q: Pre-provisioning operating profit margin of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 12.5% for FY-2025, which is above its 5-year median(9.09%), indicating increasing margins.

Q: Net Profit Margin of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 41.26% for FY-2025, which is above its 5-year median( 37.67%), indicating increasing margins.

Q: Does its ROIC exceed its WACC?

Tourism Finance Corporation Of India Ltd return on invested capital (ROIC) is 8.39% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

Check Before You Invest : Tourism Finance Corporation Of India Ltd

BSE: 526650 NSE: TFCILTD ISIN: INE305A01023

| Sector: BFSI | Industry: Finance Term Lending

Snapshot

Q.1 Which industry/sub-sector does Tourism Finance Corporation Of India Ltd belong to?

Tourism Finance Corporation Of India Ltd belongs to the BFSI sector, operating specifically within the Finance Term Lending segment.

Q.2 Is Tourism Finance Corporation Of India Ltd a good quality company?

Tourism Finance Corporation Of India Ltd is a weak quality company, based on a inconsistent multi-year financial track record.

This assessment is based on the bank’s performance on Total Income growth, Pre-Provision Operating Profit, RoA, RoE, CAR, and Asset Quality, along with how these metrics compare with its long-term averages.

Q.3 Is Tourism Finance Corporation Of India Ltd undervalued or overvalued?

Tourism Finance Corporation Of India Ltd appears Overvalued, as its key valuation ratios are higher than their past averages.

Based on the industry it operates in, the relevant valuation ratios include one of the following, P/E, P/BV, P/Sales, EV/EBITDA or a combination of two or more.

Valuation Ratios	Current	5-year Historic Median
Price to Earnings	27.81	11.12
Price to Book	2.61	0.94
Price to Sales	12.55	4.31
EV to EBITDA	17.11	8.82

Q.4 Is Tourism Finance Corporation Of India Ltd a good buy now?

Tourism Finance Corporation Of India Ltd is a neutral opportunity now, based on stable price trend analysis suggesting prices may move sideways. However, you need to check its quality and valuation before making a decision

Performance Analysis

We have analysed the performance of the company on the following:

How has it performed on generating Profits?
By checking its Total Income growth, NPM, PPOP, RoA and RoE compared to its last 5-year median.
How efficiently has it grown and managed operations?
By checking its Total Asset growth.
How strong is its Capital position and Asset Quality?
By checking its Capital Adequacy Ratio (CAR), GNPA and NNPA.

A: What are the trends in income and profitability?

Q.1 Total Income growth of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Operating Income growth is 4.04% for FY-2025, which is above its 5-year CAGR of -1.81%, indicating faster growth.

Q.2 Return on Assets of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Return on Asset is 5%, which is above its 5-year historical median of 3.8%, indicating improved earnings on assets.

	Current Level	5-year Historic Median
NPM (%)	41.26	37.67
PPOP (%)	12.5	9.09
RoA (%)	5	3.8

Q.3 Return on Equity (ROE) of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Return on Equity is 9% for FY-2025, which is in line with its 5-year historical median of 9%, indicating the business is making similar use of its shareholders capital.

Q.4 Pre-provisioning operating profit margin of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Pre-provisioning operating profit margin, which is the bank’s core operating profit before provisioning for bad loans, is 12.5% for FY-2025, which is above its 5-year median(9.09%), indicating increasing margins.

Q.5 Net Profit Margin of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Net Profit Margin, which is the difference between the rate of interest earned on assets and the rate of interest paid on liabilities, is 41.26% for FY-2025, which is above its 5-year median( 37.67%), indicating increasing margins.

Q.6 Does its ROIC exceed its WACC?

Tourism Finance Corporation Of India Ltd return on invested capital (ROIC) is 8.39% for FY-2025, is lower than its estimated weighted average cost of capital (WACC) of 14%, indicating value erosion.

B: Does the bank grow efficiently and manage its operating costs?

Q.7 Total Asset growth of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Total Asset growth is -0.05% for FY-2025, which is above its 5-year CAGR of -3.64%, indicating faster growth.

C: How strong is the bank’s capital position and asset quality?

Q.8 Capital Adequacy ratio of Tourism Finance Corporation Of India Ltd?

Tourism Finance Corporation Of India Ltd Capital Adequacy ratio (CAR) is 69.70% for FY-2025, which is above the regulatory requirement of 15%, indicating strong capital position.

Ownership & governance

D: Promoter shareholding and pledge status of Tourism Finance Corporation Of India Ltd?

Q.1 Promoter shareholding and pledge status of Tourism Finance Corporation Of India Ltd?

Promoters hold 3.85% of the Tourism Finance Corporation Of India Ltd, with 0.00% of their stake pledged, indicating no pledge risk.

Peer comparison (industry-wise, mcap)

E: How does Tourism Finance Corporation Of India Ltd performance compare with that of its Peers?

Q.1 AUM Growth of Tourism Finance Corporation Of India Ltd vs Industry Peers?

Tourism Finance Corporation Of India Ltd AUM CAGR is -3.64%, compared to the 5-year industry median CAGR of 3.91%, indicating slower growth and losing its market share.

Q.2 Profit metrics (NPM, PPOP, RoA) of Tourism Finance Corporation Of India Ltd vs industry peers

Tourism Finance Corporation Of India Ltd profit metrics are above the industry median level of 3.09%, indicating stronger profitability compared to peers.

Profit Metrics

	Current Level	5-year Industry Median
NPM (%)	41.26	4.47
PPOP (%)	12.5	3.91
RoA (%)	5	0.9

Q.3 Operating efficiency of Tourism Finance Corporation Of India Ltd vs industry peers?

Tourism Finance Corporation Of India Ltd ROCE (10.5) is above the industry median of (6.4); while the current ROE (9) are above than the 5-year average Industry ROE (1.4). This shows that the business is positioned in the top quartile of the industry.

Operating Efficiency

	Current Level	5-year Industry Median
NPM (%)	41.26	4.47
PPOP (%)	12.5	3.91
RoA (%)	5	0.9
ROCE (%)	11	6.4
ROE (%)	9	1.4

Valuation & price assessment

Q.1 Stock return of Tourism Finance Corporation Of India Ltd over the last decade?

Over the last 9 years, the stock has delivered a CAGR of 26.2% based on the current price.

	9Y	5Y	3Y	1Y
Share Price CAGR	26.2%	42.2%	72.4%	80.9%

Q.2 How do the current valuation ratios compare with 5-year historical median and industry numbers?

Valuation Ratios	Current	5-year Historic Median	5-year Industry Median
Price to Earnings	27.81	11.12	13.42
Price to Book	2.61	0.94	1.13
Price to Sales	12.55	4.31	4.78
EV to EBITDA	17.11	8.82	10.31

Q.3 Valuation ratios of Tourism Finance Corporation Of India Ltd vs historical and industry averages?

The current Price-to-Book (P/B) ratio of 2.61 is higher than its historical median of 0.94, indicating that the stock is trading above its historical average valuation.

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Check Before You Invest : Tourism Finance Corporation Of India Ltd

Snapshot

Performance Analysis

Ownership & governance

Peer comparison (industry-wise, mcap)

Profit Metrics

Operating Efficiency

Valuation & price assessment

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