14-Oct-2026 07:48:24
HSBC on Travel Food Services ; Buy, TP Rs 1567
Inorganic growth and premiumisation could boost Q2 earnings despite weak traffic; forecast c18% revenue, c16% EPS growth Into H2, traffic growth could be better, but T3 shift to JV (GHL) could wipe out 6-8% of PAT; this is built into estimates Valuation understates healthy growth and pricing power While TFS continues to grow (it has c50 units planned over next 12-15 months), two existing contracts (Kolkata & Chennai) are up for renewal in next 5-6 months Both are very important & estimate could wipe out 15-20% of its EPS if lost This remains a key stock overhang While bidding process could start over next 2-3 months, clarity may not come until March-April 2027. Renewal could improve investor sentiment.
TRAVEL FOOD SERVICES LTD