Travel Food Services could report a weak Q1, HSBC says but maintains ‘buy’

Shares of Travel Food Services Ltd. are in focus on Thursday, June 25, as brokerage firm is positive on the stock even as it sees the first quarter slowing down its growth.Brokerage firm HSBC has a “buy” rating on the Travel Food Services stock with a target price of ₹1,540 per share, an upside of 14.8% from its previous close.

Travel Food Services operates a travel quick-service restaurant and a lounge business across airports in India and Malaysia.
HSBC said weakness in air traffic in the June quarter was driven by travel disruption and higher fares could be a drag on the company’s quarterly results.The brokerage said said resilient corporate travel and some revenge travel could boost demand in the second half of the financial year 2027. Cost headwinds could be a pass through, it added.
HSBC said pricing power, healthy balance sheet, attractive valuation and growth potential are all plausible.

All four analysts who have coverage on the stock have “buy” ratings.

Shares of Travel Food Services made a subdued debut on the stock exchange sin July last year. The stock listed at a 2.3% premium on the exchanges compared to its issue price of ₹1,100 apiece.

The stock ended the previous session 0.2% up at ₹1,341 apiece and has risen 21.9% from its issue price.

It has gained 16.4% in the past month and 15.7% this year, so far.

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