Helloji Holidays Ltd IPO Analysis

A travel companion is something every family looks for when planning a holiday. With many travel options out there, here comes a fast-growing player raising funds to make vacations smoother, affordable, and unforgettable for every Indian traveller.

(The Helloji Holidays Ltd Share Price will be finalised post-allotment, while grey market cues through the Helloji Holidays Ltd IPO GMP will likely reflect market sentiment closer to listing.)

Indian Tourism Industry

India's tourism industry will be valued at approximately $22.5 billion (USD) in CY 2024, as the recovery from COVID-19 continues to gain momentum. The tourism market is anticipated to grow at a 6.1% CAGR from CY 2024 to CY 2033. 

Foreign Tourist Arrivals to India will total approximately 9.66 million in CY 2024, representing 1.4% of the worldwide total of foreign tourist arrivals.

Domestic tourism will continue to lead the market, with states such as Uttar Pradesh and Tamil Nadu receiving the biggest numbers of visitors due to their strong spiritual and historical connections. Outbound travel is anticipated to increase to approximately 30.23 million trips in CY 2024, representing an 8.44% increase from CY23.

Business Overview

Incorporated in 2012 as Helloji Holidays Private Limited, it is a travel service provider that offers comprehensive travel management services for B2B and Corporate clients. The company operates from its headquarters in New Delhi, India and became a public limited company in October 2024.

The company provides end-to-end B2B travel management services, including air travel reservations, hotel accommodation, car rental, and cruises, as well as travel insurance and visa services. 

Additionally, Helloji Holidays Limited is known for providing MICE solutions and combining an offline, personalised touch with an online booking platform through Helloji.com to serve both Business and Retail Travellers.

Business Model

1. Comprehensive Travel Solutions: The company is an all-in-one travel provider. Provides all of the travel services needed, including domestic and international flights, hotels, cruises, etc.

2. B2B dominant model: Helloji Holidays generates the majority of its revenue from corporate business and institutional clients. However, it also serves retail travellers (B2C) through travel agencies.

3. MICE Specialisation: The company also operates in specialised MICE (Meetings, Incentives, Conferences, and Events) services, offering end-to-end solutions for corporate gatherings, business events, and incentive travel programs etc. 

4. Flexible Sourcing and Pricing: The Company sources its services from two main channels: direct procurement of discounted partner rates from service providers and third-party travel partners. 

5. Forward-Purchase Strategy: The Company is also involved in a forward-purchase strategy for purchasing airline tickets based on demand forecasts. This strategy will help it increase its profit margin and provide better service to its customers.

Service Categories

• Air ticketing: Domestic and international flight bookings 

• Packaged Tours: Inbound and outbound customised tours 

• Hotel Reservation: Worldwide hotel reservations and packages 

• Ancillary Services: Cab booking, Visa assistance, Passport assistance, travel Insurance 

• MICE: Comprehensive corporate travel and event management.

Research indicates that sales have significantly increased from 18.76% in FY23 to 44.7% in FY25, representing the largest revenue source for the company. Tour Packages have also risen significantly, increasing from 6.02% to 18.83%, showing increased demand for combined travel options.

The trend of flight revenues has been mixed, with international flights remaining steady and strong, increasing from 27.61% to 31.55%. While domestic flights have fallen from 23.46% to 21.73%.

The smaller categories have remained fairly stable, with Other Services consistently in the 6-8% range and Conferences and Events gradually increasing from 0% to 1.17%. 

Overall, the revenue mix is shifting from primarily flight-related services to a greater emphasis on hotels and packages, which are typically more profitable.

Primarily promoted by Mr Hitesh Kumar Singla and Mr Anil Kumar Sharma, the management has extensive prior industry knowledge of travel and tourism. Promoters have decades of experience in the travel and tourism industry over time. 

The governance ensures quality as the audit and remuneration committee is led by independent directors.

Since Helloji Holidays was formed in 2012, the team has established core B2B and Corporate Travel capabilities and has increased the number of services available to clients.

Financial Performance

With the revenue rising from 17.2Cr in FY23 to 28.12 Cr in FY25, Helloji Holidays Ltd showcases a 2-year CAGR of 28% CAGR from FY23 to FY25 along with margin stability. The EBITDA & PAT margins have been in an uptrend, showcasing improvement in the profitability of the company. 

The return on equity (ROE), which was in a very high range, has been in a downtrend on account of an increase in invested equity value. The company has witnessed a positive return on capital employed (ROCE) trend due to a simultaneous increase in profit and no debt. 

However, it must be noted that the surge in SPEB’s revenue is backed by a higher increase in trade receivables, which has shown more growth when compared to sales.

Overall, it can be said that the company has a decent quality of balance sheet, with high sales and profit growth, but a volatile trend in margin and return ratios.

On performing a peer comparison, the company seems to be undervalued in terms of the PE & EV/EBITDA ratios. The debt-to-equity ratio is absolute 0, while the peers carry debt in the financials. 

The P/E & EV/EBITDA is 19.31x post listing, which is lower than the other industrial players, providing SPEB with room for shareholder value creation.

Helloji Holidays Ltd is demonstrating performance with its margins in a fair range in comparison to the industry standard. The current EBITDA margin is 10.07% while the PAT margin is around 7.45%. 

The ROE stands at 50.78% & ROCE is 44.38% which are also on a higher side in comparison to the pee

• Capex Expansion: Funding expenditure required for its software platform.

• Working Capital: Maintaining debtors and other assets for sales & business expansion.

• General Corporate Purpose: Required for administrative and operational-related expenses. 

Overall, the company aims to raise funds to expand its working capital and software base. It will be able to effectively cater for its customers' needs by having a larger scale of air tickets, hotel and other travel-related services. 

It can be said that the money is being used for the company’s primary purpose for expansion in tour & travel services.

Strength and Risk

Final Words

At Alpha Venture X Fund, we assess opportunities through our LMVT framework — Leadership, Moat, Valuation, and Tailwinds — enabling us to identify scalable businesses with durable fundamentals. 

Leadership: Promoted by Hitesh Kumar Singla and family with 10+ years in travel aggregation, and proven ability to scale revenue from 17.2Cr in FY23 to 28.1Cr in FY25 while remaining debt‑free.

Moat: Company has a strong B2B focus with 57% revenue from repeat corporate clients, high-touch servicing and credit terms. 

Tailwinds: Rising share of higher-margin packages and increasing revenue from MICE services. Software upgradation and higher working capital lead to an effective client experience. 

Valuation: The company is undervalued with a P/E & EV/EBITDA ratio at 19.3x & 8.7x, respectively. Providing an upside to the shareholders.

Bottom Line: Helloji Holidays is risky, given its tiny scale and concentrated customers. However, the company is currently undervalued, has high ROE and low debt, making it a selective, not an automatic buy.