AAKASHAYA PATRA EXCLUSIVE STOCK FOR INVESTMENT:15.08.2020

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 TOURISM FINANCE CORPORATION

CMP 42 ENTRY 38 TO 41 STOP LOSS 20 TARGET 75++ TIME: 18 MONTHS

 Tourism Finance Corporation of India Ltd.(TFCI) has been set-up as an All India Financial Institution,pursuant to the recommendations of "National Committee on Tourism" set-up under the aegis of Planning Commission in 1988. The main object of setting-up the specialised financial institution was to expedite the growth of tourism infrastructure in the country by providing dedicated line of credit on long term basis to tourism related projects in the country.

TFCI provides financial assistance by way of rupee loan, subscription to equity / debentures and corporate loans mainly to hotel projects, amusement parks, ropeways, multiplexes, restaurants etc. With a view to diversify in other related areas, TFCI has expanded the scope of its activities by including financing of infrastructure projects, real estate projects and manufacturing projects to a limited extent, within the scope of its activities. It has an equity base of just Rs.80.72 crore that is supported by reserves of around Rs.672.81 crore. The promoters (LIC, GIC & some foreign funds) hold 26.17%, FPIs & AIFs hold 14.05% while the investing public holds 59.78% stake in the company.

With a share book value of Rs.92.27, its P/BV ratio works out to just 0.46x which is very attractive. During Q1FY21, it reported PAT of Rs.16.57 crore on higher income of Rs.63.08 crore fetching an EPS of Rs.2.05. Its GNPA reduced from 5.08 percent to 1.91 percent while net NPA reduced from 2.45 percent to 1.36 percent during this lockdown period which is outstanding. Currently, the stock trades at a P/E of 4.55x. Its recent high rate was Rs.182.25 which was formed on 12th January 2018. Stock almost corrected 76.80% from recent high.

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