Tourism Finance Corporation of India popularly known as TFCI was formed in 1989 as a public financial institution with the core objective of providing finance and advisory services to the tourism sector in the country. TFCI’s main business is providing Rupee Finance using loans and debt advances.
The company provides financial products to various sectors such as the Hospitality and Tourism sector, manufacturing and social infrastructure sector, etc. TFCI provides Term loans for setting up Hotels, Food courts, Resorts, Entertainment centers, Amusement parks, government-approved Educational institutions, Hospitals, Nursing Homes, etc. It also provides term loans to the manufacturing units preferably in the MSME sector.
In over three decades of operation, the company has been instrumental in development of innumerable hotel rooms and other tourist attractions in the country. The company has developed leading international brands across the country along with premier names such as the Taj Resorts in Kerala and Goa, Umaid Bhawan Palace Heritage Hotel, Ananda SPA in Himalayas, Palace on Wheels, EsselWorld Amusement Park, Imagica Entertainment Pak, etc.
TFCI has provided tourism development advisory services to the Ministry of Tourism and State Tourism Departments of Gujarat, Madhya Pradesh, Jharkhand, Chhattisgarh, Himachal Pradesh, Delhi, Pondicherry and Tamil Nadu. With continued government support, the tourism and hospitality sector is poised for exponential growth over the next decade on the back of growing technological advancements such as online travel portals, mobile app based bookings and online payment tools to book travel and accommodation in a very easy way.
Post Covid, the Indian government came to fore by announcing revival packages under the Emergency Credit Line Guarantee Scheme ( ECLGS ), infusing equity to MSME’s , extending loan moratorium,s and restructuring of loans. All these initiatives have helped the tourism and hospitality sector in the country and the bounce back is being seen in the business of domestic travel and tourism , social and corporate travel and MICE activities.
TFCI had posted Q2FY24 financial results with net sales at Rs 57.80 crores and quarterly net profit of Rs 18.75 crores. The current stock price of TFCI is being quoted at Rs 142 on the stock exchanges. On a TTM EPS of 9.56 and a TTM PE of 14.92 and a Book Value of Rs 122, the stock can appreciate to decent levels over the next 6-9 months time frame.
Rising volumes in the TFCI stock indicate accumulation by prudent stock pickers and portfolio investors sensing some good Q3 and Q4 FY 2024 financial results and announcements by the company management. Investors can accumulate the TFCI stock on the advice of their financial consultant and stock broker with proper due diligence.