Firm Overview
Journey Meals Companies Ltd. (TFS), integrated in 2009, is one in every of 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 retailers 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 thought for its operational excellence with a ~94% concession retention fee and has developed environment friendly provide chain methods, a various outlet format, and powerful model alliances. It has partnered with world manufacturers corresponding to KFC, Jamie Oliver’s Pizzeria, and Subway, whereas additionally creating widespread in-house choices.
Promoters & Shareholding:
| Particulars | Pre-Challenge | Submit-Challenge |
| Promoters | 100.00% | 86.19% |
| Others | 0.00% | 13.81% |
Public Challenge Particulars:
- Provide for Sale: 18.2 million shares with face worth of Rs 1.
- Recent Challenge: Nil
- Complete Challenge Dimension: ₹2,000 Cr
- Value Band: ₹1,045 – ₹1,100
- Submit Challenge Market Cap: ₹13,760.7 Cr – ₹14,484.7 Cr
- Bid Lot: 1 lot for ₹14,300 and a max of 13 tons.
- Provide Interval: Jul 07, 2025 – Jul 09, 2025
- Itemizing Date: Jul 14, 2025
- Guide Operating Lead Managers: Kotak, HSBC, ICICI Securities, B&Okay Securities
Objects of the Provide:
- No contemporary capital raised; complete problem is Provide for Sale by present shareholders.
Execs:
- Market chief within the airport QSR and lounge section with important progress in outlet base.
- Robust monetary efficiency with EBITDA margin of ~33% in FY25.
- Excessive model recall and vast portfolio throughout home and worldwide journey hubs.
- Sturdy growth plans by means of ARAYA lounges and entry into new markets.
- Premium pricing energy on account of captive journey viewers and controlled value environments.
Dangers:
- Excessive dependence on journey footfall and key airports (e.g., Delhi, Mumbai).
- Brief-term concession agreements and lease renewals pose continuity dangers.
- Excessive fastened value construction might damage margins in downturns.
- Publicity to regulatory and coverage adjustments in airport operations.
Trade 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 growth on account of 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 value band, the difficulty 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 engaging. Different listed friends like Jubilant Foodworks and Devyani Worldwide commerce at increased 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 Shops | 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% |
Similar-Retailer Gross sales Progress (SSSG): TFS reported a really wholesome SSSG of 9.2%. It is a standout determine, particularly when in comparison with friends who’ve reported flat and even damaging SSSG. It signifies robust and rising demand at its present areas, highlighting the resilience of its travel-focused mannequin.
Operational Effectivity (EBITDA Margin): The corporate’s EBITDA margin of 28.4% is exceptionally robust 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, doubtless on account of 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 earnings. This excessive return on capital is a powerful indicator of a strong enterprise mannequin and environment friendly administration.
Suggestion:
With robust operational metrics, high-growth runway within the Indian journey F&B area, and a margin/return profile higher than listed friends, Journey Meals Companies Ltd seems well-positioned for long-term progress. Regardless of no contemporary problem, present fundamentals and market dominance would possibly warrant a “Subscribe” score 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.
When you should not have one go to mymoneysage.in
