India has a rich cultural and historical heritage, variety in ecology, terrains, and places of natural beauty spread across the country. This provides a significant opportunity to fully exploit the potential of the tourism sector. In this article, we are going to be looking at the travel and tourism industry and the potential for growth in this industry. We will also be analyzing the top 5 listed travel companies in India.
Travel Industry Overview
India is one of the most popular travel destinations across the globe has resulted in the Indian tourism and hospitality industry emerging as one of the key drivers of growth in the services sector in India.
The tourism industry in India has significant potential considering that Tourism is an important source of foreign exchange in India similar to many other countries.
The foreign exchange earnings from 2016 to 2019 grew at a CAGR of 7% but dipped in 2020 due to the COVID-19 pandemic. According to WTTC, India is ranked 10th among 185 countries in terms of travel & tourism’s total contribution to GDP in 2019.
During 2019, the contribution of travel & tourism to GDP was 6.8% of the total economy, Rs. 1,368,100 crores (US$ 194.30 billion). In 2020, the Indian tourism sector
accounted for 39 million jobs, which was 8% of the total employment in the country. The travel market in India is projected to reach US$ 125 billion by FY27 from an estimated US$ 75 billion in FY20.
The Indian airline travel market was estimated at ~US$ 20 billion and is projected to double in size by FY27 due to improving airport infrastructure and growing access to passports.
The Indian hotel market including domestic, inbound, and outbound was estimated at ~US$ 32 billion in FY20 and is expected to reach ~US$ 52 billion by FY27, driven by the surging demand from travelers and sustained efforts of travel agents to boost the market.
Top Listed Travel Companies In India
The following is the list of Listed Travel Companies In India. Let’s keep reading to find out more.
1. Easy Trip Planners Ltd.
The company offers a comprehensive range of travel-related products and services under the flagship brand ”Ease My Trip’’.
It also provides end-to-end travel solutions, including airline tickets, hotels and holiday packages, rail tickets, bus tickets, and taxis as well as ancillary value-added services such as travel insurance, visa processing, and tickets for activities and attractions.
The company plans to further strengthen its Air travel business and also to expand its presence in the hotels and holiday package segment and prioritize the Tier II and Tier III cities.
The sales of the company jumped by 88% for FY 2021-22 and there has been a constant increase in the sales of the company in the last 5 years barring 2020 as that was affected by the pandemic.
The company has delivered good profit growth of 66% for FY 2021-22 which has been constantly increasing for the last 5 years. The ROE for FY 2021-22 is 53%
which is better than all its competitors. The company’s debt-to-equity ratio is 0.17 which is a great sign as the ratio is less than 1. The price-to-earnings ratio of the company is 67.5 which is much higher than the industry PE of 31.5 and it shows that the company is currently overvalued.
74.9% of the company is held by the promoters which is a good sign as it shows that they believe the company is going to grow in the future. None of the shares has been pledged by the promoters which is another good sign.
2. BLS International Services Ltd.
BLS International Services Limited (BLS), a part of the four-decades-old BLS Group with a global presence and diversified range of services, counts amongst the top three global players in visa application outsourcing, with its presence in visa/ passport/ consular/ citizen services with 62 countries and 36 government clients and provides services through 2,325 offices worldwide.
The sales of the company increased by 56% for FY 2021-22 and there has been a constant increase in the sales of the company in the last 5 years barring 2020 as that was affected by the pandemic.
The company has delivered a good profit growth of 71% for FY 2021-22 which has been constantly increasing for the last 5 years apart from 2020 as that year was affected by the pandemic.
The ROE for FY 2021-22 is 22% which has been constantly increasing for the last 3 years. The company’s debt-to-equity ratio is 0.02 which is excellent as it is very close to 0.
The price-to-earnings ratio of the company is 54.1 which is much higher than the industry PE of 28.2 and it shows that the company is currently overvalued.
74.59% of the company is held by the promoters which is a good sign as it shows that they believe the company is going to grow in the future. None of the shares have been pledged by the promoters which is another good sign.
3. Thomas Cook (India) Ltd.
Thomas Cook is one of the promising travel companies in India which offers a detailed one-roof solution to all your travel requirements.
It was founded in 1881 by Thomas Cook, the founder of the defunct British brand Thomas Cook & Son, who organized its first office in India and ultimately expanded it to over 233 locations, in 94 cities across India, Sri Lanka, and Mauritius.
The travel company also includes Foreign Exchange, International, and Domestic. Holidays, Visa, Passport, Travel Insurance, and MICE. On its website, you can search flights for to your destination, make hotel room bookings, Buy forex, sell forex or send money abroad.
This travel company is also known for its travel destination holiday packages such as International holiday packages to Thailand, Maldives, Dubai, etc, and Indian holiday packages to withstand the diversity of terrains and cultures in India.
You can also check the most frequently booked Visas, honeymoon holiday packages, International destinations, and much more on their website.
The company’s sales increased from Rs 795cr in the previous year to Rs 1888cr for this year. The company has reduced its losses by 38% from the previous year.
The ROE for FY 2021-22 is (-)14% which is not a great sign for the company as it implies that the company is at loss. The company’s debt-to-equity ratio is 0.34 which is fine as it is less than 1.
The company’s promoter holding has been increasing in recent times. The promoters increased their stake from 70.58% in march 2022 to 72.34 in June 2022.
This is a good sign as it shows the promoters believe that the company is going to grow in the future. None of the shares has been pledged which is also a good sign for the company.
4. International Travel House Ltd.
Incorporated in 1981, International Travel House Limited (ITH) started operations as India’s first publicly listed travel company. At present, the company is engaged in the business of providing travel-related services to travellers in India and abroad.
The company’s revenue increased from Rs 59cr in the previous year to Rs 94cr this year. The company has reduced its losses from Rs 45cr in 2021 to Rs 10cr in 2022.
The ROE for FY 2021-22 is (-)11% which is not a great sign for the company as it implies that the company is at loss. The company’s debt-to-equity ratio is 0 which is a great sign as it shows the company is almost debt free.
The company has a price-to-earnings ratio of 19.7 which is quite low compared to the industry PE. Usually, this would mean that the company is undervalued but in this case, the PE ratio is low because the company is not doing too well.
61.69% of the company is held by the promoters which is a good sign as it shows that they believe the company is going to grow in the future. None of the shares has been pledged by the promoters which is another good sign.
These were the top 5 listed travel companies in India based on their market cap. The travel industry like other industries is very huge and all the companies are competing to get more market share but there are only a few companies that have managed to gain the consumers’ attention so much so that they constitute a major part of the industry.
These companies have made travel more accessible and easy with minimum effort. That’s all for the article on Listed Travel Companies In India, We hope you enjoyed reading it. Happy investing!
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