Le Travenues (IXIGO)
Fast GrowerFairStock Score: 21/100 — RISKY
Score breakdown: P/E: 0/3 · ROCE: 1/2 · Growth: 2/2 · Dividend: 0/1
Key Financials
| Current Price | ₹174.03 |
| Market Cap | ₹7,675.49 Cr |
| P/E Ratio | 88.34 |
| ROCE | 12.62% |
| ROE | 13.73% |
| Dividend Yield | 0% |
| Profit Growth | 53.06% |
| Debt/Equity | 0.02 |
| Sales Growth | 14.77% |
| Promoter Holding | 0% |
| 52-Week Range | ₹151.35 — ₹339.15 |
| Sector | Leisure Services |
| Book Value | ₹46.1 |
Strengths
- Sales growth of 31.35% and profit growth of 69.33% show strong momentum.
- Latest quarter net profit of ₹24 Cr on ₹318 Cr sales implies a decent 7.5% net margin.
- Low leverage with debt/equity of 0.04, supported by ROE of 13.73% and ROCE of 12.62%.
- Piotroski F-Score of 7/9 indicates solid financial health for now.
Concerns
- Valuation is extremely rich: P/E of 126.57, P/B of 13.15 and PEG of 2.51 leave almost no margin of safety.
- Zero dividend yield and promoter holding shown at 0.00% raise questions about shareholder and owner alignment.
- Stock has fallen from its 52-week high of ₹339.15 to ₹172.45, trading near the low and flagged as RISKY by FairStock Score.
- Travel is competitive and cyclical; a 7.5% net margin can erode quickly if discounting intensifies.
AI Analysis
Looking at Le Travenues, I first ask: what am I buying? Travel distribution is a competitive, low-margin intermediary business. IXIGO is growing fast—sales up 31.35%, profit up 69.33%—and the latest quarter shows ₹318 Cr revenue and ₹24 Cr profit, about 7.5% net margin. In my experience, such margins in travel can be fragile when competition spends on discounts or airlines change commission economics. The balance sheet is decent: debt/equity is 0.04, ROE is 13.73%, ROCE 12.62%, and a Piotroski score of 7/9 suggests financial condition is improving. But valuation destroys the story. At ₹172.45, market cap is ₹7,457 Cr, or 126.57 times earnings and 13.15 times book. Even with 31% sales growth, the PEG ratio of 2.51 says the market is paying a premium for growth that may not continue. I need a margin of safety; this price has none. I also see red flags. Dividend yield is zero, so all returns must come from price appreciation. Promoter holding is shown as 0.00%, which is deeply concerning in India; I want owners with skin in the game. The stock trades near its 52-week low, between ₹151.35 and ₹339.15, down from ₹339.15 to ₹172.45. FairStock Score calls it 23/100 risky, and I cannot disagree. This is a fast-growing travel platform, but not a Buffett-style investment at this price. The wise move is to wait on the sidelines.
Data from BSE/NSE filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer