Helloji Holidays BSE SME IPO review (Not Rated)

•    The company is engaged in the business of travel and tourism segment.
•    It provides customized holiday packages for leisure travel and related solution.
•    The company posted average financial performance, but outperformed industry standards in bottom lines, that raise eyebrows and concern over its sustainability.
•    Based on its recent financial data, the issue appears exorbitantly priced. 
•    Investors may stay away from this pricey and dicey IPO.

ABOUT COMPANY:
Helloji Holidays Ltd. (HHL) offers customized holiday packages for leisure travelers and provide end-to-end travel solutions, including domestic and international flight bookings, hotel and resort reservations, cruises, luxury car rentals, sightseeing, and destination management services. Its offerings are designed for both individual travelers and groups, including corporate bookings. In addition to core travel services, it also provides value-added services such as travel insurance, passport and visa assistance. Its focus remains on delivering tailored travel solutions that fulfil customer aspirations and create memorable journeys.

The company is dedicated to continuously expanding and updating its range of services to remain competitive in the market. Its current service portfolio includes Air Ticketing, Packaged Tours, Hotel Reservation, Ancillary Services, and MICE management. It operates across the leisure holiday value chain through both B2B (Corporate, Agents and institutional clients) and B2C (retail travelers) channels. Its stronghold remains in the corporate segment, which contributes the majority of its revenue. Company’s network and destination knowledge allow it to aggregate demand from across India and deliver cost-effective travel solutions to clients, irrespective of the destination.

Its business is closely linked to geographical and seasonal trends, as travel demand varies with environmental conditions and the suitability of destinations throughout the year. The company addresses these dynamics by curating travel packages aligned to customer preferences, ensuring the right match between destination and season. As of October 31, 2025, it had 17 employees on its payroll.

ISSUE DETAILS:
The company is coming out with its maiden book building route IPO of 928800 equity shares of Rs. 10 each to mobilize Rs. 10.96 cr. at the upper cap.  The issue opens for subscription on December 02, 2025, and will close on December 04, 2025. The company has announced a price band of Rs. 110 - Rs. 118 per share. Post allotment, shares will be listed on BSE SME. The minimum application to be made is for 2400 shares and in multiples of 1200 shares thereon, thereafter. The issue constitutes 27.09% of the post-IPO paid-up capital of the company. From the net proceeds, it will utilize Rs. 5.04 cr. for working capital, Rs. 2.90 cr. for capex on purchase of software, and the rest for general corporate purposes. 

The IPO is solely lead managed by Khambatta Securities Ltd., while Maashitla Securities Pvt. Ltd., is the registrar to the issue. Prabhat Financial Services Ltd. is the market maker as well as a syndicate member.

The company has issued initial equity capital at par value, and issued further equity shares in the price range of Rs. 40 – Rs. 120 per share between June 2024, and September 2024. It has also issued bonus shares in the ratio of 5 for 1 in July 2024. The average cost of acquisition of shares by the promoters is Rs. 4.67, Rs. 5.44, and Rs. 5.67 per share.  

Post-IPO, company’s current paid-up equity capital of Rs. 2.50 cr. will stand enhanced to Rs. 3.43 cr. Based on the upper price band of the IPO, the company is looking for a market cap of Rs. 40.46 cr. 

FINANCIAL PERFORMANCE:
On the financial performance front, for the last three fiscals, the company has posted total income / net profit, of Rs. 17.18 cr. / Rs. 0.20 cr. (FY23), Rs. 25.97 cr. / Rs. 1.80 cr. (FY24), Rs. 28.18 cr. / Rs. 2.10 cr. (FY25). For H1 of FY26 ended on September 30, 2025, it posted a net profit of Rs. 0.91 cr. on a total income of Rs. 12.74 cr. While it posted growth in its top and bottom lines from FY23 to FY25, H1 of FY26 indicates declined trends, that raise alarm.

For the last three fiscals, the company has posted an average EPS of Rs. 10.05, and an average RoNW of 63.53%. The issue is priced at a P/BV of 4.12 based on its NAV of Rs. 28.65 per share as of September 30, 2025, but its post-IPO NAV data is missing from the offer documents.

If we attribute annualized super earnings of FY26 on post-IPO paid-up capital, then the issue price is at a P/E of 22.31, and based on its FY25 earnings, the P/E stands at 19.31. Thus, the issue appears exorbitantly priced. It is operating in a highly competitive and fragmented segment.

For the reported periods, the company has posted PAT margins of 1.14% (FY23), 6.95% (FY24), 7.45% (FY25), 7.15% (H1-FY26), and RoCE margins of 29.25%, 100.60%, 44.38%, 16.13% respectively for the referred periods. 

DIVIDEND POLICY:
The company has not paid any dividends since incorporation. It will adopt a prudent dividend policy, based on its financial performance and future prospects. 

COMPARISON WITH LISTED PEERS:
As per offer document, the company has shown LGT Business, Travels and Rentals, Naturewings Holidays, as its listed peers. They are currently trading at a P/E of 6.96, 11.9, and 16.1 (as of November 27, 2025). However, they are not truly comparable on an apple-to-apple basis.

MERCHANT BANKER’S TRACK RECORD:
This is the 18th mandate from Khambatta Securities in the last four fiscals. Out of the last 12 listings, 3 listed at discount, and the rest with premium ranging from 3.33% to 306.88% on the date of listing.