Waterways Leisure Tourism Limited is a premier domestic ocean cruise operator in India, providing luxurious and inherently Indian travel experiences under the brand name "Cordelia Cruises". The company's business model centers on offering comprehensive vacation packages that bundle accommodation, fine dining, beverages, and varied onboard entertainment, ranging from casinos and live performances to rock climbing and family-friendly activities. The company actively generates revenue through ticket sales and onboard spending on specialty restaurants, spas, salons, and shore excursions. The company primarily caters to domestic tourists seeking luxury and experiential vacations, specifically targeting families, couples, and corporate groups. They place a significant emphasis on capturing high-value guests and have partnered with financial institutions to offer exclusive cruise credits to premium cardmembers. By driving a significant portion of its sales through direct bookings via its website, mobile app, and call centers (which employ 148 cruise holiday experts), the company is able to understand passenger preferences closely while optimizing margins by minimizing third-party commission payouts. As an ocean cruise operator, the company does not utilize traditional manufacturing plants; its primary asset and "facility" is its cruise vessel, the 'MV Empress', which features a capacity of 2,005 guests across 796 cabins. The company boasts robust capacity utilization—referred to as the Passenger Load Factor or Occupancy Rate—which stood at 84.99% in FY26, 91.63% in FY25, and 78.54% in FY24. The 'MV Empress' sails along the Indian coastline to domestic ports like Mumbai, Goa, Kochi, Chennai, and Lakshadweep, as well as internationally to Sri Lanka. To manage operational efficiency, the company outsources critical cruise functions such as food and beverages, housekeeping, and crewing to third-party specialists. Looking to dramatically scale their capacity and capitalize on industry tailwinds, the company has entered into time charter agreements to lease two additional vessels—the 'Norwegian Sky' (2,004 guest capacity) and the 'Norwegian Sun' (1,936 guest capacity)—which are expected to commence operations in FY27 and FY28, respectively. As per financial performance, Waterways Leisure Tourism Limited has posted total income/net profits of Rs 452.15 Cr / Rs (122.73) Cr (FY24), Rs 597.68 Cr / 168.19 Cr (FY25) and Rs 586.99 Cr / 52.14 Cr (FY26). So as per previous financials data, company has shown steady growth, but debt increased three times from Rs 368.18 Cr in FY23 to Rs 1,303.21 Cr as of 9M FY26. Net Cash from Operating Activities collapsed from a positive Rs 610.89 Crores in FY23 to a negative Rs (92.00) Crores in FY25, and worsened to a bleeding negative Rs (387.70) Crores in 9M FY26. The company is recording accounting profits but burning immense cash. Company has an average EPS of Rs 9.52 and average RoNW of 214.06% for last three fiscals. Issue is priced at a P/BV of 65.64 as per NAV of Rs 12.31/- as on 31.03.26. If we attribute latest earnings of FY24, FY25 and FY26 on equity post issue, then asking price is at a P/E of around NA, 34.78 and 112.18 respectively. As per RHP, comparison between listed peers are shown in the above market. On BRLM's front, Centrum Broking Limited are associated with this IPO, and has handled 1 IPOs in last three fiscal years. ( As on 18.06.26 ) As per financials, Waterways Leisure Tourism Limited has shown average results, RoNW is 92.70% and P/E is NA, 34.78 and 112.18 respectively as per FY24, FY25 and FY26 earnings. So issue looks fully priced, but negative cash flow, increase in debt and inventory are indicating risks. This IPO purely looks exit strategy for existing investors and no benefit to the company. Company is the leading non-ferrous metal recycler in terms of installed capacity, which is highly competitive business segment. So, we give NEUTRAL rating for this IPO. Readers must consult a qualified financial advisor prior to making any actual investment decisions.
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