Travel Food Services (TRAVELFO IN): Buy: Inorganic growth to support 1QFY27 earnings

研报英文原文证据摘录

Travel Food Services (TRAVELFO IN): Buy: Inorganic growth to support 1QFY27 earnings

SRs and premium lounge at

Cochin, and 47 QSRs at T1 and T2 in Delhi). We think Jewar (Noida) airport may not 52-WEEK PRICE (INR)

contribute much since the traffic is yet to pick up and Air India has pulled off. 1700.00

Focus moves to 2Q as healthy earnings growth in sight: 2Q is seasonally a weak 1325.00

quarter for air travel. Even airline capacity cuts and fresh escalations in the Middle East 950.00

(ME) could keep traffic growth under pressure. However, at the time of writing, airline 07/25 Target price: 1540.0001/26 07/26

operations to the ME have not been impacted. So, the demand could still look better than High: 1388.80 Low: 1017.30 Current: 1304.20

1Q. Airlines, OTAs, and hotel companies signal that domestic corporate travel is picking Source: LSEG IBES, HSBC estimates

up, with enquiries and booking momentum for MICE events. Hence, we expect overall

Achal Kumar*

demand to pick up. There is a strong traffic flow between India and ME. Hence, Analyst, Global Transport

normalisation of ME operations could boost demand, resulting in healthy inorganic HSBC Securities and Capital Markets (India) Private

Limited

earnings growth driven by above-mentioned airports as well as Navi Mumbai which falls achalkumar@hsbc.co.in

in its JV, SKPL, from 2Q onwards. +91 80 4555 2751

Nihal Mahesh Jham*, CFA

Maintain Buy, INR1,540.00 TP: Our PE-based TP implies 18.1% upside and we Senior Analyst, India Consumer & Retail

HSBC Securities and Capital Markets (India) Private

retain a Buy rating as we believe the weakness in passenger traffic is only transitory Limited

while the company’s fundamentals remain strong. TFS remains well positioned to nihal.m.jham@hsbc.co.in

+91 22 66283771