HSBC maintains a 'buy' rating on Travel Food Services Ltd. with a target price of ₹1,540 per share, representing an upside of 14.8% from its previous close. According to reports from CNBC TV18, all four analysts who have coverage on the stock have 'buy' ratings, indicating strong consensus among brokerages. The stock ended the previous session 0.2% up at ₹1,341 per share and has risen 21.9% from its issue price.
HSBC expects Travel Food Services to report weak Q1 results due to weakness in air traffic during the June quarter. As reported by CNBC TV18, the brokerage attributes this weakness to travel disruption and higher fares, which could be a drag on the company's quarterly results. The company operates a travel quick-service restaurant and lounge business across airports in India and Malaysia.
Despite Q1 challenges, HSBC expects resilient corporate travel and some revenge travel to boost demand in the second half of financial year 2027. According to the brokerage's analysis reported by CNBC TV18, cost headwinds could be a pass through. The company's pricing power, healthy balance sheet, attractive valuation and growth potential are all plausible factors supporting the positive outlook.
The stock made a subdued debut on the stock exchange in July last year, listing at a 2.3% premium on the exchanges compared to its issue price of ₹1,100 apiece. As reported by CNBC TV18, it has gained 16.4% in the past month and 15.7% this year, showing steady performance despite the recent analyst concerns about Q1 results.
